Gov. Charlie Baker announced a sprawling plan Thursday aimed at buoying the state’s economy during the COVID pandemic, comprised of nearly $115 million in new initiatives and more than $650 million in preexisting efforts.
The biggest new funding stream in the plan, which is dubbed “Partnerships for Recovery,” is nearly $51 million in small-business grants, intended to boost a segment of the Massachusetts economy that’s been hit especially hard by the changes wrought by the coronavirus.
“These grants are designed to help the state’s most vulnerable businesses and their workers,” Baker said. “Small businesses can apply now — that means now — at the [Massachusetts Growth Capital Corporation] website, empoweringsmallbusiness.org .”
“These businesses and workers that make up our downtowns are owned and operated by many of our friends and neighbors,” Baker added. “They need our help, and their need is significant. … We can all do our part by continuing to buy, shop, and dine locally.”
After Baker’s announcement, Jon Hurst, the president of the Retailers Association of Massachusetts, said while the businesses he represents could use more assistance, that new stream of state aid will help his members — especially because it comes in the form of grants rather than loans.
“I think we all know that the big dollars and big solutions for helping out small businesses have to come from Capitol Hill, not Beacon Hill, just because of the magnitude of the problem,” Hurst said. “But we are appreciative of the $50 million coming from the state.
“Would I like it to be higher? Yes. But for those that are going to get that [aid], capped up to maybe $75,000, that can be a lifeline.”
In July, a MassINC Polling Group survey found that nearly two-thirds of the state's small business saw their gross revenues drop by at least 25% in the first half of the year. Just one in three were fully open, and nearly half said they had laid off or furloughed employees.
The new small-business support Baker announced Thursday also includes $10 million to fund changes to municipal streetscapes in response to COVID; $10 million in recovery-planning grants for cities and towns; and $10 million to support cultural facilities like museums and theaters.
Karen Polito, the lieutenant governor, noted that the state has already steered $10 million to more than 100 municipalities to make physical alterations, and called that money well spent.
“Cities and towns have demonstrated their creativity in leveraging these relatively small dollars to really make a difference, by installing barriers and infrastructure to promote safe outdoor dining … in places that you normally wouldn’t see seating and tables,” Polito said.
Before the plan was officially announced, Baker told GBH News’ Joe Mathieu that about $140 million of the $774 million in total spending is contingent on passage of a new state budget.
At Thursday’s press conference, Baker sounded optimistic that the Massachusetts Legislature would agree to allocate the funds in question.
"If all goes according to plan, a lot of this will be out the door by the end of the calendar year," Baker said.
The governor also noted, pointedly, that the state's current efforts would be greatly enhanced by the passage of new federal COVID-relief legislation.
"On a whole series of initiatives, some of which relate to business development and support for job training and unemployed workers ... there’s a surprising amount of agreement there if you actually look at all the bills that everybody’s been kicking around," Baker said. "And the thing that’s been frustrating to me is despite that they haven’t been able to come to terms with it.”
“We’re talking today about $775 million dollars,” he added. “How much [Paycheck Protection Program] money was approved for Massachusetts? $14.3 billion. I mean, the feds play on a very different level than we do.”
