Small businesses were noticeably absent from a long list of priorities for $1.25 billion in federal aid for COVID-19 expenses outlined on June 9 by Gov. Gina M. Raimondo’s administration. This was less surprising than disappointing, given Lt. Gov. Daniel J. McKee’s recent break with the governor on the state’s handling of the funding. Lt. Gov. McKee, chairman of Rhode Island’s Small Business Advocacy Council, has rightly called on the governor and other state leaders to do more to recognize the economic crisis many of those businesses are facing.
“Not having a plan to use a portion of those dollars to help small businesses stay alive indicates that it’s not a priority,” the former Cumberland mayor told PBN recently.
Lt. Gov. McKee, who comes from a family of small-business owners, supports monthly grants for struggling businesses with fewer than 50 employees. He has also called for a state-guaranteed loan program to allow those businesses to borrow at no interest and with deferred payments.
Gov. Raimondo and other state leaders have refused to commit to those programs or some other combination of significant financial support to help small businesses survive beyond short-term federal loans.
The governor has understandably been focused on leading a successful, phased reopening of the state’s economy. But small businesses are the very backbone of that economy and will be the ones to lead the state out of the pandemic-induced recession.
State leaders must ensure more funding is focused on helping as many of those businesses stay alive as is possible.