Vermont Businesses for Social Responsibility Last week, House and Senate leadership announced plans to move forward with an immediate economic relief bill modeled largely off of the grant programs detailed in the Scott Administration's Restart Vermont Economic Recovery Package pitched last month.
- $250 million in loans and grants for local businesses, nonprofits, and sole proprietors
- $50 million in housing assistance
- $5 million for technical assistance to businesses and community assistance providers
- $5 million in marketing support via creative collateral for local communities as well as regional marketing and consumer stimulus grants
VBSR and our partners at Main Street Alliance Vermont collected feedback from roughly 130 businesses across the state on the how this proposal could best serve Vermonters. Using the data collected, we offered testimony to the House Commerce and Economic Development Committee recommending improvements to bolster the accessibility, flexibility, and scale of the package's financial assistance programs and ensure an equitable COVID-19 recovery.
Check out our full testimony here.
On Thursday, Speaker Johnson and President Pro Team Ashe announced that the general assembly would be moving forward in crafting their own economic relief package, but recognized the urgent need to provide financial relief for Vermont's business community.
As the legislature pieces together their broader proposal, they plan to have a bill on the governor’s desk by the end of next week that would offer $60 to $90 million in grants to the Vermont businesses and nonprofits hit hardest in the economic fallout of the pandemic.
In a memo sent to Committee chairs, House leadership detailed how Committee's should proceed in using CRF dollars. Of the $1.25 billion in CRF funds Vermont received, $275 million has already been spent via the FY20 budget adjustment, $400 million is being set aside to fill holes in the budget and/or for second tier Committee priorities (this hinges on the Treasury loosening their spending restrictions), and the remaining $575 million is for first tier Committee priorities and is being split up between them accordingly.
Of that $575 million, the House Commerce and Economic Development Committee, the body charged with creating the expedited grant program, has been allocated $150 million with another $30 million potentially on the way in August. With money in hand, the Committee is working on a bill to use $70 million of that funding to provide grants to employers who can show a revenue loss of 75% or more for any one month between March 1, 2020 and September 1, 2020.
Eligible applicants would receive grants equal to 5% of their average annual sales from calendar years 2018 and 2019. The idea is that the Committee would fund this initial program and either reinvest additional money and/or reduce the eligibility requirement to 60% to allow more businesses to participate.
Their latest draft is available here.
In our most recent survey, VBSR and MSA-VT found that roughly 27% of businesses reported a 75% decline in revenues since March 2020 and 33.33% of losses of 65% or more. Recognizing the urgency many of our members are facing, we expressed concerns about the 75% threshold, noting that it may exclude many businesses in dire need of assistance.
Our lawmakers have a difficult financial challenge at hand in balancing the urgent need for economic assistance with funding for key social services, all while keeping in line with stringent federal spending guidelines. VBSR is committed to working with our legislature to craft a relief plan that not only recognizes the integral role our businesses play in our communities and economies but one that also seizes the opportunity to create lasting, positive change in the green mountain state.
Source: VBSR 6.8.2020