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Phase 2 of economic relief and recovery package presented

Submitted by tim on

Vermont Business Magazine Governor Phil Scott on Friday announced the second phase of the Administration’s $400 million dollar Economic Recovery and Relief Package. Phase 2 uses $90 million to bring financial assistance to struggling businesses, housing and community recovery efforts, broadband expansion, and regulatory modernization.

The Legislature passed its own economic recovery plan also on Friday that contains $93 million, with $70 million for small business and another $23 million for housing.

The Legislature wants to retain much of the funding to help fill what could be upwards of a $400 million budget shortfall for FY 21.

Scott has urged the lawmakers to put all $400 million into the economy now because the long-term negative impact will be far greater if the economy collapses from business bankruptcies.

The money comes from the federal CARES Act, from which Vermont received $1.25 million.

Outline of Governor Scott's Plan Phase 1 & Phase 2

On May 20, Governor Phil Scott announced his proposal for a $400 million economic relief and recovery package, using funds from the $1.25 billion the state received from the Federal CARES Act. The two-phase proposal will start with $310 million for immediate relief to the most impacted sectors and businesses to be followed by $90 million for long-term recovery efforts. The Agency of Commerce and Community Development and the Governor will now work with the Legislature towards passage of this historic relief package.

The Phase 1 relief package will involve four areas of distinct action to support businesses and Vermonters as they resume their operations. They include:

  • Financial assistance: Emergency Action Grants for food and accommodation services, retail, and agriculture, Vermont Economic Injury Disaster Loan and Grant program, and small business focused Vermont Restart loans and grants. ($250MM)
  • Housing assistance: Rental Housing Stabilization Fund for property owners and a Re-Housing Recovery Fund to address homeless need. ($50MM)
  • Technical assistance: Restart Vermont Recovery Guides created through a network of business and community assistance providers, and Employee Assistance Program to support the mental health and wellbeing of business owners and their families. ($5MM)
  • Marketing support: Promotional marketing campaign to promote Vermont to Vermonters and deliver a toolkit of creative assets to be used by local communities, and regional marketing and consumer stimulus grants to encourage local spending, with implementation strategies to be proposed by local entities. ($5MM)

Phase 2 of the relief and recovery package is intended to help Vermonters find a path forward to thrive in a new economy, following their survival in Phase 1 in four different categories:

  • Financial assistance: Funding to help prevent wide-scale foreclosures, bankruptcies and deterioration of the sectors and the communities in which they operate. Support longer term recovery efforts via seed funding to create and grow job creators in new technologies, utilizing IP, and to support prosperity for the state. ($55.5MM)
  • Housing and Community Recovery: Provide grants, technical assistance, and resources to villages and downtowns that restore consumer confidence, rebuild local economies, boost local capacity, and reconnect Vermonters to one another. Additional funding to provide direct financial assistance to stabilize households that could otherwise face foreclosure. ($11MM)
  • Broadband Expansion: Broadband expansion program to connect the last mile, bridge the affordability gap, and streamline the processing of pole licensing applications to ensure that businesses and families have continue access necessary to adapt to this new way of life. ($20MM)
  • Regulatory Modernization: Enhance economic recovery by modernizing Vermont’s regulatory programs and environmental permitting tools. These investments will accelerate the transition of program administration from paper-based to web-based and changes to support more efficient permit processing. ($3.5MM)

See full details of the plan.

Recordings of ACCD’s webinars featuring details about Phase 1 of the Economic Recovery and Relief Package are also available.

Cross State Travel Map Updates

The Department of Financial Regulation updated the map today of non-quarantine counties for cross state travel. Any county with less than 400 active cases of COVID-19 per one million residents is now eligible for quarantine-free leisure travel. The map as well as the latest quarantine restrictions, including the new guidance that goes into effect on Monday, June 15, 2020, is available on the Cross State Travel Information page. More counties will be added over time as their active case counts improve.

A recording of the webinar ACCD hosted this week to help explain the coming quarantine changes as they relate to the lodging industry is now available online.

Updates to the Paycheck Protection Program (PPP)

  • A recording of the Department of Economic Development’s virtual town hall about the Paycheck Protection Program—“PPP: There’s Still Money Available”—is now available.
  • New rules and guidance for the Paycheck Protection Program—as well as an updated borrower application form and loan forgiveness application—are forthcoming. Visit the SBA website for details about the upcoming changes.
  • The SBA has also announced it is providing $10 billion of round two funding for PPP to be lent exclusively by Community Development Financial Institutions (CDFIs). These funds will help to ensure that the Paycheck Protection Program reaches all communities in need of relief during COVID-19.

Business Impact

ACCD wants to hear from all Vermont businesses impacted by the response to the COVID-19 virus. Please share these impacts via the ACCD Business Impact Form, which will help us assess the full impact as we work toward solutions.

Source: ACCD 9.12.2020