Maryland Gov. Larry Hogan announced a doubling of economic relief funds to help small businesses while the state awaits additional stimulus from the federal government.
Hogan said Thursday that he’s doubling the $250 million the state has already spent on economic recovery by pulling additional money out of the $1.3 billion rainy day fund. He says the fund will maintain the state standard of holding onto 5% of the total budget, but more money is needed from Congress.
“Even though it’s a tremendous amount of money, we can’t do it alone. We still need that next stimulus package at the federal level,” Hogan said. “We need both parties in Washington to stop playing politics, to end the gridlock, and to get this done for the American people.”
Hogan also mentioned he didn’t think the state would have additional federal stimulus before the November election. To make up for the lack of funding from the federal government, the majority of the funds from the state — $100,000 — will be used for emergency rapid response to small businesses.
At least $50 million will be used for grants of up to $10,000 for small businesses and another $50 million will be used for grants for restaurants to pay for services and equipment like personal protective gear, technology to support carryout and delivery, and upgrades to ventilation systems.
At least $20 million will be provided through the Department of Housing and Community Development to assist businesses and local entertainment venues within the state’s Main Street program. The administration is also adding $20 million to the state’s COVID-19 layoff aversion fund, which has already helped 9,000 people keep their jobs. The state is also expanding the Small and Minority Business Low-Interest Loans by $5 million, the Arts Organization fund by $3 million, and $2 million will go toward the state’s hometown tourism program.
Hogan also said he’d like to see all counties move into Phase Three of reopening in order to spark economic recovery.
“Since June, we’ve been asking [the counties] to follow our roadmap to recovery which we think makes the most sense,” Hogan said, citing the low positivity rates in Prince George’s County of 4%, Anne Arundel County of 3.1%, and Montgomery County of 3.5%, according to their respective health departments. “You can’t get much lower than that.”
The three counties have not fully moved into Phase Three of reopening and still have restrictions on gatherings and businesses.
A spokesperson for Prince George’s County Executive Angela Alsobrooks wrote in a statement to DCist/WAMU that the county “will move into phase three when our health professionals dictate it is safe to do so … We know this pandemic has been difficult on our business community, which is why we have launched a number of recovery initiatives to assist local and small businesses.”
As of March, more than 81,000 businesses have received $10 billion in federal aid from the paycheck protection program, and $7.6 billion has been distributed in unemployment assistance for more than 622,00 Marylanders. However, at least 64,000 people’s unemployment claims have gone unresolved as of earlier this month, according to the Baltimore Sun.
Dominique Maria Bonessi