PROVIDENCE – After another bout of political pressure to expand relief for small businesses, Gov. Gina M. Raimondo and R.I. Commerce announced Wednesday major expansions to the Restore Rhode Island small business grant program, increasing maximum grant allocation and extending eligibility to nonprofit organizations and private child care facilities.
Organizations may now apply for up to $30,000 through the program, double the previous cap. Applicants who have already received grants through the program and have expenses not covered under their original grant application will be eligible to request additional funding under a streamlined process, R.I. Commerce said. The changes will be implemented over the next week.
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Just $11 million of the $50 million designated for the Restore RI program has been dispersed so far by R.I. Commerce to approved businesses that have been financially impacted by the pandemic.
“This pandemic has been devastating for our small businesses, which we know are the lifeblood of Rhode Island’s economy,” said Raimondo. “It’s critical that we provide more financial resources to these businesses as they work to stay afloat and navigate this storm.”
According to Wednesday’s announcement by R.I. Commerce, since the grant program began accepting applications about 10 weeks ago, more than 1,400 businesses have received funding and “hundreds of businesses” are working their way through the application process.
As previously reported, Raimondo had announced in mid-July that $100 million would be allocated to directly support Rhode Island’s smallest businesses with these Restore RI grants, with $50 million in the first round of funding for direct cash assistance.
“The COVID-19 pandemic has hit the small business and non-profit communities especially hard,” said Commerce Secretary Stefan Pryor. “We are pleased to expand Restore program eligibility once again so we can assist child care centers and nonprofit organizations. In addition, we are establishing a new program for businesses that need to change direction or adapt significantly in order to make it through this crisis.”
The news of expansion comes after Lt. Gov. Dan McKee sent a letter to Raimondo Tuesday, urging immediate revisions to the grants’ structure to ensure that remaining funds for small business relief will not expire before the federal government’s deadline of Dec. 30.
McKee’s office said in the announcement that Rhode Island is in danger of being forced to return the funds to the federal government, as required under the CARES Act guidelines.
“The use-it or lose-it CARES Act deadline is fast approaching. Congress and the administration have not been sufficiently reliable where Rhode Island should gamble with small business funds and risk having them expire on Dec. 30,” said McKee.
In late September, Commerce had announced that sole proprietors with zero employees and businesses with up to 50 employees were eligible for the grant program, and streamlined the application process, making it easier for businesses to apply.
Pryor previously announced during a Sept. 29 Facebook Live Town Hall that he was interested in helping child care facilities through the grant program that weren’t eligible for other CARES Act funds, and that owners should reach out to R.I. Commerce.
Commerce also partnered with the Rhode Island Foundation to support local nonprofits with direct service programs. The grants will be administered by the Foundation and will provide grants of $1,000 to $75,000 to nonprofits using a portion of the state’s CARES Act funds. The grants can be used for new or expanded program services or direct assistance that responds to the pandemic’s impact on communities. The Foundation will accept application from Oct. 15 through Oct. 30.
R.I. Commerce also announced Wednesday a new grant program for companies whose businesses have been significantly impacted because of the pandemic and have been unable to continue their normal operations. R.I. Commerce will begin accepting applications for the Business Adaption Grants next week for amounts of up to $50,000 to adapt their business to operate during the pandemic. The competitive grant program is being funded through the state’s $1.25 billion CARES Act funds, and is capped at $1.8 million.
Alexa Gagosz is a PBN staff writer. Contact her at Gagosz@PBN.com. You may also follow her on Twitter at @AlexaGagosz.
