Hello everyone,
It is disappointing to see that neither political party has introduced loan-grant legislation that would aid small businesses that were impacted by the coronavirus pandemic.
So far, we have seen Maryland and Pennsylvania announce programs. As noted in this space earlier, the governor of Vermont has proposed an ambitious program that runs in the hundreds of millions of dollars and uses funds from the CARES Act
Granted, there is some question as to whether the more than $1 billion Delaware has received under the act can be used for assisting small businesses hammered by the virus. Still, some neighboring states plan to move forward.
Delaware officials have generally indicated that much of the money will be needed to shore up the state’s unemployment insurance program, which is now dealing with a jobless rate that in April totaled 14.3 percent, more than three times the pre-COVID-19 figure.
Delaware has made some moves. The Division of Small Business was quick to roll out the H.E.L.P. program, which offers loans to small businesses, with an emphasis on the hard-hit hospitality industry.
But the need for further assistance is clear, especially as the impact of $1.4 billion in Payroll Protection Program loan-grants wears off. The PPP offers a loan that can be partially or entirely forgiven if a company keeps employees on the payroll.
One possible source of funding for the program is New Castle County, which received $300 million under the CARES Act, under a provision that grants funds to areas with a half a million or more residents.
The money amounts to a big windfall since the county does not have the social and health services departments that have been in the middle of the COVID-19 fight.
For now, the General Assembly, operating via Zoom, has a limited agenda that focuses on dealing with the revenue gaps in the state budget.
It is also an election year and legislators like to keep things low key.
Early signs point to businesses bouncing back a little more quickly than originally estimated.
An expanded program under the H.E.L.P. or similar umbrella might aid in a quicker recovery.
Here’s to a productive day as we deal with some of that East Coast heat and humidity. – Doug Rainey, chief content officer.
