Small and medium-sized businesses in Connecticut have been begging for relief funds for months. Back when COVID-19 first broke out, the state did distribute $50 million in federal funds. Most of this money was given to small and medium-sized businesses. More than 18,000 people applied for this first wave of small business grants in Connecticut. Obviously, the Governor could not approve grants for everyone.
Recently, the Governor confirmed that they have been promised another $50 million for grant money. They will start distributing these monies before the end of the year if everything goes as planned. This time, the grants will not be limited to restaurants.
Experts say that those businesses in the hospitality sector are suffering the worst. This includes hotels and restaurants. The casinos are also struggling. However, the casinos do not appear to be eligible for this grant money.
The Governor has been put under a lot of pressure to get an additional $130 million in federal relief. Apparently, there is still $130 million left over from the initial relief provided from the CARES act. This money needs to be appropriated before December 30, 2020 or it will be forfeited.
The Governor has advised that he was told this money should be earmarked to bail out the state’s unemployment fund. Those monies were depleted some time ago.
Right now, the State estimates that they’ll be issuing as many as 10,000 small business grants in Connecticut over the next few weeks. These grants will range from $5,000 to $10,000. Business owners are upset. They said that neighboring states are giving businesses anywhere from $30,000 to $75,000. Lamont has stated that there just isn’t this kind of money there. He also wants to help as many companies as possible.
If you have questions about relief funds or any other legal issues during this pandemic, get in touch with a Connecticut business lawyer right away.