Small biz grants meet small fraction of demand
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Gov. Charlie Baker
As Gov. Charlie Baker on Monday announced small business grants that would flow to more than 1,000 small businesses hit by the COVID-19 crisis, he encouraged people interested in seeing more aid to call their state lawmakers and urge them to pass measures that would help more companies in need of assistance.
The nearly $49 million in grants, administered by the Massachusetts Growth Capital Corporation, will go to businesses that are owned by people of color, women, veterans, LGBTQ individuals and people with disabilities, Baker said.
Further breaking down the awards, Lt. Gov. Karyn Polito said 94 percent of the 1,158 businesses are minority-owned and 76 percent women-owned, with more than a third of recipients operating in gateway cities. Housing and Economic Development Secretary Mike Kennealy said the grantees include 262 personal care providers, 217 restaurants and nearly 100 retailers.
The small business grant program was announced in October, and Baker said there were an "exceptionally large number of applicants" -- more than 10,000, seeking more than $500 million in relief.
"The funds for the first round clearly didn't cover the ground associated with those who applied," he said.
Baker said the $45.9 billion state budget he signed on Dec. 11 includes another $17.5 million for the Mass. Growth Capital Corporation for more small business grants, and the agency will "soon" select recipients of a second round of funding from the initial applicant pool.
A supplemental spending bill that Baker filed the day he signed the budget proposes $49.4 million in small business grants, representing about half the funding for a recovery program that Baker had recommended in his budget but which the Legislature did not fully include in its version.
"While we understand the budget process was immensely challenging this year, we believe we can afford this additional funding, and we hope the Legislature will act soon on this assistance," Baker said. "Even with the additional funding that I just mentioned, we know the need far exceeds these resources."
Along with the recent $107.4 million supplemental budget (H 5177), which was referred to the House Ways and Means Committee last Monday, Baker also singled out an economic development bill that has been tied up in private conference committee talks since July 30.
A Democrat-controlled conference committee, chaired by House Ways and Means Chairman Aaron Michlewitz, has yet to reach consensus on the sweeping jobs bill, which also includes sports betting language and zoning reforms that Baker has long sought in hopes of spurring housing production.
Baker said he would "urge people to contact their state rep or their state senator" and ask them to advance both the spending bill and the economic development bill. The legislative session concludes on Jan. 5, leaving just over two weeks, including the Christmas and New Year's holidays, for lawmakers to get bills to Baker's desk.
"The clock is ticking on the end of the session with respect to that, but the clock is also ticking for businesses here in the commonwealth that would benefit from those resources if we could get them across to our desk, sign them, and put them to work," Baker said.
The governor said he also expects support for small businesses from the roughly $900 billion stimulus deal Congressional leaders agreed to on Sunday, and that "whatever resources land in Massachusetts, we'll work as quickly as we possibly can to turn them around and move them out the door."
Baker said he hopes Congress quickly gets a bill to President Trump for him to sign into law.
"The support is a welcome present for so many people here in Massachusetts and around the country who need it to help build a bridge between here and the successful implementation of a widespread, safe and effective vaccine," he said.
Four days before Christmas, Baker said he and other officials are "basically begging everyone to stay within their immediate household" for holiday celebrations because, with hospitals facing immense strain from rising COVID-19 cases, the state "simply can't afford to have another spike, one of the largest in the United States, take place after the Christmas holiday while we're still dealing with the spike that came from Thanksgiving."
"We'll have more to talk about on this soon," he said. Baker said he's "currently reviewing additional steps that we can take to try to minimize the impact of all this."
"But the tools that we have available at our disposal won't stop the virus alone," he said. "We continue to need everyone, and I mean everyone, to think really hard about the consequences of the actions that they take throughout the rest of this holiday season."
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