Lt. Governor and Business Groups Call for More Relief for RI Businesses

Lt. Governor and Business Groups Call for More Relief for RI Businesses

The calls for help for Rhode Island businesses are increasing.

“The traffic right now is horrible. Business is terrible. The mood is grim,” Roger Gross of Franklin Roger Ltd, a men’s clothing store in downtown Providence.

“From Monday to Thursday, I believe 20 people shopped. We usually have at least 200 shoppers,” said Daniel Park of Park's Plaza on Mathewson Street.

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“But by now this is all old hat to Rhode Islanders. The folks at the highest echelons of state power are already aware of the devastation this tragedy has caused to our small business community. Everyone knows that Rhode Island businesses -- particularly restaurants, who cannot easily transition into new service models -- are suffering greatly,” said Bradly J. VanDerStad, President, Downtown Hospitality Group.

Downtown Providence businesses are not the only ones urging critical relief.

 

Deadline Looming, Action Needed

Lt. Governor Dan McKee on Monday urged Governor Gina Raimondo to address the critical situation.

With the December 30 CARES Act deadline looming, McKee is proposing a plan to ensure all CARES Act dollars budgeted for small business relief are transparently and equitably distributed into the small business community before the funds expire.
 
In a letter to the Governor’s senior staff, the Lt. Governor recommended that the state be prepared to transfer any available small business funds (i.e. Restore RI, RI on Pause, Back to Work RI Job Training, Take it Outside, Rhode Island Hotel, Arts & Tourism Grants, Business Adaptation Grants) on the date of expiration back into the Restore RI grant program.

He added that remaining dollars should be automatically distributed to small businesses in the Restore RI program for an additional round of funding without the need for another application. The Lt. Governor also requested that the state briefly reopen the Restore RI application period to allow more struggling small businesses access these critical funds.

"As Chair of Rhode Island’s Small Business Advocacy Council, I want to ensure that all CARES Act funds allocated to help small businesses are spent before the deadline for their intended purpose: To help small businesses. Having to forfeit the funds would be unacceptable at a time of such great need," said McKee. “By redistributing all remaining small business relief funds proportionally through Restore RI to small businesses that have already qualified, we could dispense the funds quickly and equitably and allow them to be spent in the most impactful way for Rhode Island families.”

Some have complaints about the process. 

"Why then do state grant programs make them justify their need through rigorous application procedures? Why does one of my colleagues have to pay his accountant hundreds of dollars an hour to access the aid our government has allocated for him?" said Bradly.

Luke Renchan of the Rhode Island Coalition of Wedding and Event Professionals said, "Commerce said there was no money left in regards to additional funding however the Governor's interview... has confirmed there is money and that she is glad she held onto it.  She says she has money, she really needs to get it out to the people.  It seems like a piece here and there and they want us to fill this and that grant out.  It's overwhelming, stressful and many are just downright depressed about their future and if they will even survive."

State Budget Shifts Hundreds of Millions to Support Government and Hospitals Have Received Hundred of Millions

The battle over dollars is now pitting different sectors of the economy against each other.

Bradly says, "Our hospital systems are well cared for. Lifespan, Rhode Island’s largest hospital group, has received $165 million dollars in federal grants, $24.7 million from Rhode Island’s CARES Act allocation, and $169.9 million in advance payments from the U.S. Centers for Medicare and Medicaid Services. Lifespan turned a $21 million dollar profit in the 2019-2020 fiscal year due to this ample aid; meanwhile our restaurants, bastions of local culture and employment, continue to shutter."

He adds, "This is why the Downtown Hospitality Group has decided to advocate for a statewide restaurant bailout. We want the state to use CARES Act funding to cut a $10,000 check to every restaurant that depends on in-person dining and paid taxes in 2019. We estimate that this will cost under $30 million dollars, a small fraction of the aid that has already been allocated for business relief. Considering the food service industry supports about 11% of state employment and had estimated sales of 2.7 billion dollars in 2018, we think it is a reasonable amount to request."

"The point of our proposal is that it requires as little logistical overhead as possible: officials accept the universality of need in the restaurant industry, and restaurants get relief for up to three locations to keep the program limited to small chains. No applications, no headaches, just state support for one of the most important and most hard-hit economic sectors in the pandemic," adds Bradly.

To date, dozens of RI restaurants have closed including some of the best know, award-winning venues.

"Small restaurant owners represent the best of Rhode Island. Their tenacity and passion have fueled our state’s financial comeback and triumph in tourism. In other bailouts, concerns about corporate greed took center stage: the worst possible outcome with our proposal is that a family in Rhode Island gets financial security into 2021," adds Bradly.