State aiding small businesses to hire employees using $4.5M in CARES Act funds

GOV. DANIEL J. MCKEE announced that up to $4.5 million in grant funding from the CARES Act funds is being made available for hiring incentives to aid the state's small businesses recover from the pandemic. Businesses will be able to apply for $5,000 grants beginning on Nov. 4. / PBN FILE PHOTO/CASSIUS SHUMAN

PROVIDENCE Gov. Daniel J. McKee and the R.I. Department of Labor and Training have announced the Back to Business initiative, a program that will provide up to $4.5 million in Coronavirus Aid, Relief, and Economic Security Act funds to aid small businesses in hiring new workers.

The fund was created for businesses that suffered job losses amid the pandemic and continue to be impacted by the ongoing labor shortage.

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The governor said the funds are to be used for hiring incentives, such as sign-on bonuses; referral incentives; and other recruitment activities, such as job fairs, promotional materials, recruitment assistance, or ancillary supports.

McKee made the announcement at a press briefing at the R.I. Department of Administration on Tuesday, noting that businesses with 200 employees or less can each apply for a $5,000 grant made available through the program between Nov. 4-12.

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“We need to listen to the workforce,” said McKee, who toured Rhode Island with U.S. Secretary of Labor, Martin J. Walsh, on Monday to explore the state’s workforce development issues.

“We have many, many people who are treading water in terms of where they are going to go, and where they are going to work,” McKee said.

McKee said the state needs to listen to its workforce to determine what is driving its motivation to get people back to work. “And we need to get the employers to listen as well, so that we’re complementing one another in the overall objective,” he said.

The grant funding will be available on a first come, first served basis, with priority given to employers who have not received federal funding through such initiatives as the Restaurant Revitalization Funds or Shuttered Venue Operators Grants, and who have fewer than 50 employees. The maximum grant amount is $5,000 per employer. Recruitment incentives are capped at $1,000 per employee.

“We’re on a timeline. These CARES Act dollars are meant to be spent by the end of this calendar year,” said McKee. “These dollars will be spent to advance our economy by connecting people who are available to work with people who need workers. That is our focus over the next several weeks.”

Subsequent rounds of grant funding will be announced if funds are available. The application form and answers to frequently asked questions can be found at: backtobusiness.skillsforri.com.

On a related front, McKee also announced that Rhode Island is one of six states selected by the the National Governors Association to participate in the second phase of its Workforce Innovative Network program, which is designed to use cross-agency teams to identify and implement strategies that will advance digital skill development.

“This will help us address how we are going to really satisfy the workforce that is looking to reenter employment, as well as understanding what employers need to be thinking about,” McKee said. “The quicker people get back to work the better our economy is going to be for our families. We’re trying to increase our per-capita income in the state.”

McKee said the state’s cross-agency teams will spend the next eight months developing strategies by gathering input from employers, community organizations, and other stakeholders that will be used to study the digital skills gaps and craft policy recommendations.

“Skills for Rhode Island’s Future will coordinate the program in partnership with my office, the Rhode Island Department of Labor and Training, and the Rhode Island Department of Education, the Rhode Island Office of the Postsecondary Commissioner, the Rhode Island Commerce Corp., and the Providence Public Library,” he said.

Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com. You may also follow him on Twitter @CassiusShuman.

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