Visitors from the counties in blue or green may travel to Vermont without quarantine. The large swath of yellow in northern Maine is a recent development caused by a wedding in Millinocket in which people did not follow health rules, resulting in an outbreak of COVID-19. So far 32 people have tested positive. DFR graphics.
Vermont Business Magazine Governor Phil Scott today announced his proposal for an additional $133 million in economic relief and recovery, using funds from the $1.25 billion the state received from the Federal CARES Act. As with previous proposals the governor and his administration will work with the legislature to bring further relief to Vermonters and Vermont businesses.
The restrictions put in place by Congress do not allow the nearly $200 million still unspent in Vermont to be used for budgeting. The law also requires that the money be spent by the end of 2020. With Congress stuck in gridlock, Scott said the state needs to assume that those restrictions will not be loosened nor that more funds will be coming from Washington, DC. Thus, the state should find a way use the money available.
Commerce Secretary Lindsay Kurrle at the governor's press briefing Friday explains the proposal to add another $133 million to the state's economic recovery investment. ORCA Media video grab.
This latest proposal focuses on four key areas of continued investment in economic development and business support to help Vermonters experiencing loss due to the COVID-19 pandemic and resulting mitigation measures:
- Additional funding for Economic Recovery Grants to help fill gaps in the original program, to include sole proprietors, certain types of non-profits, new businesses, and those with less than 50% loss that is sustained over a longer period. ($23M) The previous requirement is that a business had to have suffered at least a 50 percent loss.
- Targeted hospitality and tourism funding to address areas of need as fall and winter approach and travel restrictions and capacity limits remain in place. ($50M) In addition to those limitations, outside dining which has helped sustain some restaurants will be naturally limited by the cold weather.
- $150 dollars to every Vermont household as part of a buy local campaign to spur economic activity that supports local businesses. ($50M) The state cannot simply give people CARES Act money, but it can distribute what would amount to gift cards. The manner of these discount/gift cards will be determined as the legislation progresses.
- Economic Development and Tourism Marketing funds that will, within the context of COVID-19, leverage social, earned, and owned media to bring more out of state revenue to Vermont. ($10M) As more counties and a greater population of people in the Northeast can travel to Vermont without quarantine, marketing will play a vital role in encouraging them to visit. With an increase of 700,000 to that list in just the last week, there are now 6.6 million people that can travel straight to Vermont.
See further guidance below graphic.
“What my administration is proposing today continues our work in addressing and delivering aid for our economy in real time both as this public health crisis plays out and as we learn more about the economic impacts Vermonters are feeling,” said Governor Phil Scott. “As we navigate this pandemic, we must ensure our economy stays on track so it can thrive in the future. We believe addressing recovery grant gaps, supporting hardest hit sectors with targeted support, financially empowering Vermonters to buy local products, and marketing our state as a place to live, work, and play can help us get through the challenging months ahead. I look forward to working with the legislature in passing this proposal.”
RELATED STORY: Over $100 million in recovery grants awarded, still more available
The Agency of Commerce and the Department of Taxes reported Monday that more than $103 million in Vermont Economic Recovery Grants have been awarded to more than 3,500 businesses in 22 different sectors and in all 14 counties in Vermont. There are still funds available.
Economic Development and Business Support Proposal
Business Support ($23M)
Through the administration of the current Emergency Economic Recovery Grant Program passed by the legislature, ACCD and the Department of Taxes identified several “gaps” in access to recovery and relief funding for certain businesses. This proposed money is intended to close those gaps for the following business types:
- Revenue Loss Changes: Pursuant to Act 115 and 137, a business has to prove revenue loss of 50% or more in any given month in 2020 as compared to 2019. The Agency and Department would like to extend financial relief to businesses who have suffered between 30%-50% loss over a sustained period of time (3 months). Many businesses who applied, and denied, were just under the 50% threshold.
- Relief for Sole Proprietors: The current grant program only offers financial relief for sole proprietor businesses that are woman-owned. They’d like to open that up to every sole proprietor.
- Non-Profit Relief: A lot of non-profits in communities were deemed ineligible because they have unique revenue situations – ACCD has heard from several, small non-profits on the brink of closing because of a technicality in the legislation.
- Financial Relief for “Even Newer” Businesses: New businesses that formed after March 1, 2019 were ineligible for grants. Pursuant to Act 115 and Act 137, businesses have to show previous year’s revenue losses. Many new businesses have suffered and continue to suffer.
Targeted Tourism and Hospitality Grants ($50M)
The tourism and hospitality industry has seen incredible loss and decline as travel and capacity restrictions continue to impact this sector. These grants are intended as direct payments to businesses in these sectors to bring economic relief and fund recovery solutions to help them survive in the current climate as fall and winter approach.
Buy Local Initiative ($50M)
Every Vermont household will receive $150 dollars as part of a buy local campaign to spur economic activity that supports Vermont businesses.
- Due to rules around the usage of CRF funds, these cannot be direct cash payments to Vermonters.
- Instead each Vermonter will get the equivalent of a discount card to use at participating local businesses allowing them to purchase Vermont products, with CRF money going directly to the business.
Economic Development and Tourism Marketing ($10M)
Economic Development and Tourism Marketing funds to, within the context of COVID-19, leverage social, earned, and owned media to bring more revenue to Vermont. Strategies include targeted marketing to visitors from safe regions for foliage and winter seasons, increase sales of local products to support Vermont businesses, and encourage people to consider relocating to Vermont, the safest and healthiest place in the U.S. to live, work and play.
For more details on the proposal visit the ACCD website. https://accd.vermont.gov/covid-19/economic-development-and-business-support-proposal
For more information on:
- COVID-19 health information, guidance and case data, visit www.healthvermont.gov/covid19.
- The Governor’s actions, visit governor.vermont.gov/covid19response.
- The state’s modeling, visit https://dfr.vermont.gov/about-us/covid-19/modeling.
Source: Montpelier, Vt. – Governor 8.21.2020