Virginia Gov. Ralph Northam says he wants to put $353 million of federal COVID relief funds towards helping tourism, small businesses and revitalizing Main Streets, and preparing industrial sites.
Northam made the announcement Monday in Virginia Beach, saying he wants to help areas hit hardest by the pandemic.
More than $250 million would go to small business grants as part of the Rebuild VA economic recovery fund. That program has previously awarded $120 million to 3,000 small businesses and non-profits beginning in August 2020. Another $25 million infusion was sent this past March. But Secretary of Commerce and Trade Brian Ball says demand is still high.
“There are so many wonderful examples of businesses pivoting and communities coming together to support one another over the past 16 months,” Ball said in a release. “These investments will provide critical funding for important programs that work in harmony to strengthen our downtowns and propel our small businesses back to prosperity.”
About $50 million in grants would go to 114 different visitors bureaus and tourism groups throughout Virginia. Some of that would pay for advertising to residents outside the state, in places such as Pittsburgh, Boston, Chicago and more.
The commonwealth estimates it lost $14.5 billion in tourism spending between March 2020, when the pandemic began, and April 2021.
Virginia ranks 8th in the nation for domestic traveler spending and Arlington, Fairfax, and Loudoun lead the state for where travelers spend the most: nearly $9 billion combined, according to 2019 data.
According to the Virginia Tourism Corporation, more than a quarter of visitors come to the commonwealth to visit relatives, about 21% come for shopping, 15% come for historic sites, and 13% for museums.
“Now that our doors are open and our lights are on, I am confident that Virginia Tourism will use this funding to reboot our tourism economy and bring people in from across the nation and beyond,” Del. Luke Torian (D-Prince William County) said in the release.
Another $53 million would go for small business including the Industrial Revitalization Fund and Virginia Main Street program.
The fund helps jumpstart industrial projects and provide money to local governments to help find suitable sites and get them “shovel ready” for project construction. Part of that pot will also go toward revitalizing small towns.
The Virginia General Assembly will need to approve Northam’s proposal at an upcoming special session on August 2.
Jordan Pascale