by Timothy McQuiston, Vermont Business Magazine The state's finances and jobs are being battered by the COVID-19 pandemic. At a lengthy press conference today ostensibly to discuss the economy, Governor Phil Scott acknowledged that the first order of business was to keep "Vermonters alive and healthy." Along with his top economic and health officials, the governor said that there is some reason to hope the social distancing is making a difference in "flattening the curve" of the novel coronavirus. He said that at some point his administration will need to focus on the economy and budget concerns, but for now the severe health issues need to be the priority.
Labor Commissioner Michael Harrington said the number of unemployment insurance filings could exceed 40,000 by the time his office files its weekly report Thursday. The last report in February, before the first reported case in Vermont, showed only 5,900 active UI claims.
Harrington said more claims have been filed in the last two weeks than they would have in an entire year.
Meanwhile, Health Commissioner Mark Levine, MD, indicated that everyone at the Burlington Health & Rehab facility, which has been the site of the state’s biggest outbreak, is being test for COVID-19.
He also said that there are a total of eight facilities now being monitored as Chittenden County witnesses by far the most cases. Of the 321 cases reported as of today, 164 are in the state’s largest county.
The other seven facilities are: Birchwood Terrace nursing home in Burlington, Lancaster at O'Brien Farm condominiums in South Burlington, Pinecrest at Essex in Essex Junction, Residence at Quarry Hill in South Burlington, Shelburne House in Williston (serves youth with severe mental health, behavioral and developmental challenges), Taft Farm Senior Living Community in Williston, and The University of Vermont Health Network Home Health & Hospice.
Levine and Public Safety Commissioner Michael Schirling both said that Vermont has succeeded in adding "millions" of pieces of personal protective equipment (PPEs).
Levine said they also have acquired more testing equipment to expand sites to Grand Isle County and the Northeast Kingdom. While more testing, which will include more lower-priority testing, will increase the number of reported positive cases, it will also give the state a better idea of the actual spread of the virus and how the state's containment practices are working.
A press conference scheduled for Thursday afternoon will offer new modeling on how the disease is progressing in Vermont and whether the curve of new cases is flatter, which is good, or steep, which is bad.
In the Q&A that followed the economic and health updates, both Dr Levine and Governor Scott indicated that the state appeared to be making progress because of the aggressive social distancing measures (school and business closings, travel restrictions and hotel and home sharing like Airbnb limited to essential personnel only) the state has instituted over the last two weeks.
Levine said, “Social distancing is more important than ever.” He cited a new report from the CDC that people could be infected and able to transmit the virus for 48 hours before showing symptoms.
Scott said he’s been encouraged by the behavior of individuals and businesses in how serious they’ve taken this pandemic and thanked Vermonters for their diligence.
“I know how hard this is,” he said. But everyone should rest assured that the administration is being guided by the best science available.
As with Tropical Storm Irene from 2011, there is a general sense of Vermont Strong.
“That’s why I’m certain we’ll get through this together,” he said.
Much of the press conference revolved around new financial tools being offered by the federal government, with big loans and grants coming from the Small Business Administration.
Commerce Secretary Lindsay Kurrle and Congressman Peter Welch were both at the press conference and outlined what is being offered.
On the state end, those laid off because of COVID-19 will be getting an additional $600 a week on top of regular benefits.
Labor Commissioner Harrington said that while many of the bureaucratic restrictions are being waived and the online system will make it easier for unemployment insurance filers to access benefits, his office is swamped.
He asked that filers be persistent and patient. Claims will be back-dated as needed so benefits will not be lost, even if it takes a while for his office to plow through all the claims. Staff has been added to help with the new claims.
He said that a whole new category of claimants (sole proprietors and independent contractors) who previously did not qualify for UI now do under the federal mandate. The Labor Department is setting up an entirely new Web link for them which will take a few weeks longer to install. He admitted that there will be a lot of "gray area" they'll have to work through, but people ultimately will not lose benefits because of the delay.
The federal government also will be sending checks directly to individuals as early as three weeks (if they filed taxes electronically last year and have direct deposit) or about five weeks via paper checks.
Individuals will get a $1,200 payment if their adjusted gross income is below $75,000. That goes up to $2,400 for incomes up to $150,000 for married couples. Parents also get $500 per child under 18.
As for the business side of it, two SBA loan plans: The Paycheck Protection Program and the Economic Injury Disaster Loans (EIDL).
The EIDL is already available for businesses and includes an immediate grant of $10,000 that is available to all businesses, including sole proprietors, in as soon as three days after applying.
For the Paycheck Protection Program (PP), some businesses will be able to apply as early as the end of this week. They would contact any existing SBA participating lender first to see if they are going to be participating in this program.
Lenders will be able to accept applications from small businesses starting April 3; sole-proprietors and independent contractors can begin applying on April 10.