|Posted:||April 21, 2020 11:01 AM|
|From:||Representative Melissa L. Shusterman|
|To:||All House members|
|Subject:||Help Mom and Pop Shops survive COVID-19|
|Like many of you, I have heard from the owners of numerous “mom and pop” businesses in my district asking for help during the COVID-19 health crisis. Forced to close their businesses, they are struggling like everyone else. However, they are ineligible for many of the programs that have been created to assist businesses and unable to access those for which they could be eligible. These businesses are family-run, and they have invested everything they have into their businesses. Not only are their livelihoods in danger, their family's finances are as well.
The state’s COVID-19 Working Capital Access loan program was created to help businesses secure funding to weather the storm. Unfortunately, the funding ran out in just four days, and many mom and pop businesses were unable to get help. Therefore, I am introducing legislation to re-open the state’s COVID-19 Working Capital Access loan program. In addition to this program, however, my legislation would also create two new programs specifically for mom and pop businesses with five employees or less.
My legislation would create a new microloan program for businesses with five or fewer employees to provide 0% interest loans of up to $15,000 with no payments required the first year, similar to the existing COVID-19 Working Capital Access loan program. My legislation would also create a grant program to provide mom and pop businesses with grants of up to $15,000 to cover working capital expenses. All three programs would be funded with a transfer from the Rainy Day Fund totaling $100 million.
Introduced as HB2449