PROVIDENCE – Acknowledging there is more to do to help struggling small businesses, R.I. Commerce Secretary Stefan Pryor in an interview on Monday characterized the litany of state small-business grant programs rolled out through the pandemic as a success.
He touted the state as a regional leader in the timing and funding per capita and per small business made available. According to R.I. Commerce Corp.’s calculations, the state has doled out roughly 10% of its $1.25 billion CARES Act funding in small-business assistance – eight and 15 times the money allocated to small businesses in Connecticut and Massachusetts, respectively.
While Mass. Gov. Charlie Baker on Monday announced the distribution of nearly $49 million in grants to small businesses, Rhode Island began funneling money to its small-business community in August with the start of its $50 million Restore Rhode Island grant program. Massachusetts and Connecticut both announced their small-business grant programs in October.
Since then, the state has rolled out programs for specific industries and costs, such as outside dining, as well as $50 million for businesses hurt by the three-week pause.
Pryor declined to comment directly on criticism from some businesses that the state’s pandemic grant programs have been unnecessarily complex, slow and inadequate to offset their losses.
“It just wasn’t possible at the time,” Pryor said of the ability to simplify and streamline certain grant applications. “With the information we have now, we would certainly be able stand up an even better program.”
Pryor pointed to the second round of Restore RI grants, as well as those distributed during a separate program specifically focused on the three-week pause, as evidence that the state has improved its application process.
“For many businesses, it has worked smoothly, and within reason, rapidly” he said of the Rhode Island on Pause grants.
About 70%, or $35 million, of the pause grants administered by the R.I Department of Revenue have been distributed to 1,500 businesses as of Monday, with another round of checks set to go out on Dec. 28, Pryor said. While some applicants were turned away for being ineligible or incomplete applications, he said it was “very likely” that all of the 2,100 eligible applicants who submitted complete applications would get a piece of the $50 million pie before the money runs out.
The pause grants, and those through the Restore RI program – which has so far doled out $45 million to 3,600 businesses – were not intended to be competitive, meaning they would serve as many eligible applicants as possible.
Other state aid programs were more challenging to qualify for – with applicants weighed against one another to determine who “best” demonstrated need for and deserved the limited funding. The $3.7 million in Business Adaptation Grants, for example, went to 100 businesses – just 25% of the 400 who applied.
The Hospitality, Arts & Tourism Grant Awards, which offered specific operational and direct support aid to hospitality, arts and tourism small businesses and institutions, also had to turn away some applicants due to ineligibility. Seven of 47 applicants for direct-support grants were dubbed ineligible, while 43 of those seeking funding for “Engagement, Service, and Resiliency activities” were turned away. Of the $20 million in HArT funds, $14.1 million has gone out to 95 organizations.
R.I. Commerce has also awarded $7.2 million in grants to 100 intermediary organizations to help businesses outfit their services for winter through the Take it Outside grant program.
Looking ahead to how the state will help support its vibrant small-business community amid a still-raging pandemic, Pryor was hopeful that more federal government aid would be directed to the state. The latest $900 billion stimulus package slated for passage does not appear to include money for state governments, but Pryor noted that the full package and provisions have not been released.
“To reach the scale necessary [to support small businesses] it’s crucial the federal government provide resources, especially given the strain upon state budgets,” he said.
Should another federal stimulus bill hit state coffers, Pryor named another round of an improved Restore RI program as one of the top priorities as advocated for by businesses, Lt. Gov. Dan McKee and the Rhode Island Small Business Coalition.
“We continue to take in feedback and will certainly assess any remaining gaps,” he said.
