PROVIDENCE – Seven weeks after Gov. Gina M. Raimondo announced a plan for small- business relief, she said she is “not satisfied” with the status of the program.
Raimondo announced on July 15, after weeks of public pressure, that she was allocating $100 million to directly support Rhode Island’s smallest businesses with $50 million in the first round of funding for direct cash assistance to assist with reopening expenses and that 20% of these funds would be allocated to minority-owned businesses.
When Your Period Is Disrupting Your Life, It’s Time to Talk About It
For many women, heavy or irregular menstrual cycles are often brushed off as “normal”—something to…
Learn More
However, nearly a month and a half later, only $5 million has been dispersed to small businesses by Commerce R.I., Commerce spokesman Matt Sheaff confirmed Tuesday.
Sheaff said that, so far, 35% of applications have been funded and 36% are in the process of completing their application or being reviewed by processors. The average award amount has been $9,200.
“I am not satisfied, nor am I critical of Commerce,” said Raimondo during a press conference dedicated to schools on Wednesday.
Raimondo said that many businesses, and particularly the smallest ones, are struggling with the required paperwork.
“We are trying to simplify the system,” said Raimondo. “But we have to keep some checks and balances in place.”
The Restore RI grants are targeted toward businesses that have been most impacted by the coronavirus pandemic. Businesses will need to demonstrate a revenue loss of at least 30% if they are in a severely-impacted industry or at least 50% revenue loss for other eligible industries.
Sheaff said 16% have been withdrawn due to ineligibility, duplicate submissions or at the applicant’s request.
Raimondo refuted allegations that the state was trying to save some of the small- business relief money for the looming state deficit.
“We’ve gotten millions of dollars out the door to thousands of businesses and we are going to continue to get more money out the door to more small businesses,” said Raimondo. “We are on it.”
Alexa Gagosz is a PBN staff writer. Contact her at Gagosz@PBN.com.
