McKee asking state officials to increase funding in Restore RI grant program

LT. GOV. DANIEL J. McKee sent a letter Monday to Gov. Gina M. Raimondo and R.I. Commerce Corp. Secretary Stefan Pryor asking for immediate changes and increases to the Restore Rhode Island small-business grant program. / COURTESY R.I. OFFICE OF THE LIEUTENANT GOVERNOR
LT. GOV. DANIEL J. McKee sent a letter Monday to Gov. Gina M. Raimondo and R.I. Commerce Corp. Secretary Stefan Pryor asking for immediate changes and increases to the Restore Rhode Island small-business grant program. / COURTESY R.I. OFFICE OF THE LIEUTENANT GOVERNOR

PROVIDENCE – Lt. Gov. Daniel J. McKee has sent a letter to Gov. Gina M. Raimondo and R.I. Secretary of Commerce Stefan Pryor Monday asking the state to make changes and increases to the state’s Restore Rhode Island small-business grant program to help entities recover from the ongoing COVID-19 pandemic before the 2020 CARES Act funding expires on Dec. 30.

The program, which was launched in August and expanded multiple times since then, recently doubled its maximum allocation from $15,000 to $30,000. Also, as of Oct. 27, 1,650 businesses have benefited from more than $14 million in funding from the program.

McKee, however, said in his letter to Raimondo and Pryor that funds continue to “drip slowly” from the state to the small-business community. In addition, more than $30 million in program funding is still available with less than two months to distribute, McKee said.

McKee is suggesting that an additional $75 million be allocated to the program by Dec. 1, which would increase the total funding from Restore Rhode Island to $125 million – or 10% of the total $1.25 billion in CARES Act funding the state received. McKee initially proposed to state officials in July that the state should allocate $125 million to about 10,000 small businesses impacted by the pandemic.

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McKee also recommended the following changes to Raimondo and Pryor:

  • Increase the maximum grant amount to $50,000, with a minimum grant of $5,000
  • Intentionally notify all small businesses owners who received a grant that they may qualify for additional funds under the new program guidelines announced Oct. 20
  • Allow all small businesses from all industries to apply, citing that dental, optometry and other medical offices are still excluded
  • Allow small businesses that opened during the pandemic from January until now to be eligible for Restore Rhode Island funding or a separate CARES Act-funded grant program

McKee also suggested to Raimondo and Pryor that they consider including small hotels in the $20 million Rhode Island Hotel, Arts & Tourism program, noting that only hotels with more than 200 rooms are eligible for such funding.

In a statement, McKee said Monday that it’s time for the state to make a “full-court press” on getting the program’s funding to needed businesses as the clock is “running out.”

“The state needs to further expand and simplify the program and launch an intentional, meaningful outreach plan to ensure business owners are aware,” McKee said. “We should not gamble with these federal funds and wait to see if Congress extends the deadline – small businesses need support now.”

Raimondo’s office did not immediately respond Monday to a request for comment.

James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.

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