April 22, 2024
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Read MoreThe Baker Administration announced a $774 million economic recovery plan today that includes $115 million in new money to support workforce training and Main Street small businesses affected by the COVID pandemic.
Beginning today, small businesses may apply for $50.8 million in grants made available through the Massachusetts Capital Growth Corp. at https://www.empoweringsmallbusiness.org/. Companies have three weeks to apply and grants will be directed to companies most in need of assistance based upon industry, location and other factors.
Business with 50 or fewer employees could access as much as $75,000. Businesses with five or fewer employees could access up to $25,000 to cover business costs like rent, staffing, and utilities, or to purchase personal protection equipment.
Some parts of the stimulus package have already been announced, such as $171 million to help renters stave off eviction. But other new allocations include $25 million in workforce development funds, $8 million to provide technical assistance to small businesses, and another $10 million to help cities and towns make infrastructure improvements, such as setting aside outdoor space for restaurants.
The recovery plan stiches together elements of Governor Baker’s pending budget proposal, capital spending and existing state economic development programs.
“Part of the goal here is to not only provide some businesses with a kickstart, but also to help the ones that are going to struggle as we head into the fall season, make it through it. And if it can be used for people to pay the rent or buy supplies or pay their people, whatever else it might be, that’s what it needs to be used for,” Governor Baker said in a morning interview with WBGH radio in Boston.
“And I think in some respects, the biggest challenge we’re all going to have here, especially if Washington can’t get around to doing something, is trying to sustain the success we’ve had over the course of the summer when the weather was warm, people finding a way to get back to work and back to business and to help them sustain that as the weather gets colder and some of the rules of the game are going to change.”
The governor said at a noon press conference that the state initiative was no substitute for a federal economic stimulus program.
“But that doesn’t seem to be in the offing,” he said.
The Massachusetts economy continues to struggle. More than 365,000 Massachusetts residents, many in lower-wage occupations, have lost their jobs since February. The commonwealth has one the highest unemployment rates in the country at 9.6 percent.
A new AIM survey of employers shows that two-thirds of companies surveyed report that sales for 2020 remain below projections. More than half of companies surveyed reported their workforce has been impacted by childcare issues, resulting from closures of daycare centers, and hybrid and remote schooling.
“AIM has continued to advocate for federal stimulus and believes that federal stimulus is still needed. The governor’s initiative announced today is a positive step at a time when struggling Massachusetts businesses, especially small businesses, need support rather that cost increases. It’s a time to collaborate on ways to grow and strengthen the economy to bring back those high quality, good-paying jobs our residents need to take care of their families,” said Brooke Thomson, Executive Vice President of Government Affairs at Associated Industries of Massachusetts.
Governor Baker noted that while foot traffic in many downtown areas has picked up in recent weeks, those areas “still have a long way to go” to regain the vibrancy and job growth they enjoyed prior to the pandemic.
“They need our help and their need is significant,” he said.
Secretary of Labor and Workforce Development Rosalin Acosta said new investments in job training are intended to establish the foundation for long-term economic opportunity during and beyond the pandemic. A key element of the administration’s plan is to engage anchor employers in different regions to ensure that job training meets the skill needs of growing industries.
If you have questions about pending economic development legislation or would like additional information regarding this new program as it becomes available, please contact Brad MacDougall by 617-262-1180 or bmacdougall@aimnet.org
If you want to get more involved email membership@aimnet.org .
Attend the November 13 AIM Executive Forum with Governor Charlie Baker.