CT Restaurants Say New State Stimulus Package Is Not Enough

CONNECTICUT — Gov. Ned Lamont has announced he is creating a pandemic stimulus program that will grant small businesses $5,000, but a state restaurant association says that's not enough.

On Tuesday, the governor said he was committing $50 million from the state's Coronavirus Relief Fund, which utilizes federal CARES Act funding, to create the Connecticut CARES Small Business Grant Program. The program will provide businesses and nonprofits in Connecticut that have fewer than twenty employees or a 2019 payroll of less than $1.5 million with a one-time grant of $5,000.

"When it comes to the economic impact of this ongoing, global pandemic, the smallest businesses have been hit the hardest, and I’ve spoken with so many owners who are doing their best to keep their workers employed and their businesses active during this incredibly challenging time," Governor Lamont said.

The CT Restaurant Association Executive Director Scott Dolch released a statement saying that the $5K, while appreciated, falls short of what those businesses need.

"Just looking at the rest of New England draws a stark comparison," Dolch said. "How can it make sense for Connecticut to put a maximum of $5,000 on its small business grants when Maine is allowing up to $100K, New Hampshire up to $300K, and Vermont up to $350K? Not only that, but each of these states, while smaller in population, has a program that is larger in total dollars than Connecticut's at $50 million."

"This grant program will help provide some relief to these small businesses that are working each day to get through this," according to a statement from Lamont. "However, there is only so much that we have available for this program, and I urge Congress to reach a deal and adopt a much-needed relief package that will help give our economy a boost and speed up the recovery."

The program is being administered by the Connecticut Department of Economic and Community Development. The grants can be used for payroll, rent, utilities, inventory, purchase of machinery or equipment, or costs associated with compliance of the ongoing Reopen Connecticut Business Sector Rules.

Dolch said that by limiting the program to businesses with 20 full-time employees or less, "Connecticut will leave thousands of small businesses ineligible, which is why most states are using a 50 full-time employee limit or higher."

The governor is directing DECD to commit half of the funds to small businesses and nonprofits that are located in towns and cities designated as distressed municipalities.

The state's previous program to support businesses through the COVID-19 pandemic, the Connecticut Recovery Bridge Loan program, provided $41.8 million in loans to 2,122 companies across Connecticut.