By Eagle Times Staff
Berlin, Vt. — Governor Phil Scott, the Agency of Commerce and Community Development, and State Treasurer Michael Pieciak announced multiple initiatives on Friday to support businesses and municipalities.
“Hundreds of Vermont businesses have been impacted by severe flooding, and for many, loans will not be enough,” Scott said. “That’s why I’ve instructed my team to get creative about providing direct financial assistance quickly to help employers get back on their feet. Although this $20 million commitment is significant, we know it will not meet the need. My team will continue to find additional resources, and we’ll work with our congressional delegation to get more federal assistance for Vermonters in need.”
The Business Emergency Gap Assistance Program will be administered by the Department of Economic Development and provide $20 million directly to impacted businesses and not-for-profits who suffered physical damage due to the severe flooding in the form of grants. The program is still under development, and specifics will be released soon. Business owners can expect grants to support demonstrated losses to physical space and replacements of inventory, machinery, equipment, and supplies.
“This program is intended to provide emergency gap funding to businesses so they can return to being the economic engines of their local communities,” Commerce and Community Development Secretary Lindsay Kurrle said. “We understand the urgent and pressing need for financial support, and while this funding will not make them whole, we hope it will make a substantial impact in helping them bring back their employees and open their doors. The dedicated team swiftly implementing this program is working tirelessly on the details, and we’re committed to making this process as efficient and transparent as possible.”
Commerce and Community Development will update businesses on program specifics, eligibility, and grant application opening date soon. Businesses are encouraged to collect, document, and prepare photographs of damage, insurance adjuster damage assessments, estimates for repairs to physical structures, equipment, inventory, or supplies purchases and actual paid expenses.
The Treasurer’s Office will accelerate $11 million in state payments to 40 Vermont towns most impacted by flooding to give the towns a steady cash flow to support ongoing recovery efforts. Municipalities will have access to immediate funds while awaiting FEMA reimbursement.
The Treasurer’s Office has paused its $85 million local investment program for economic development. It will work with the administration to determine if these funds may be better employed to support flood response.
The Treasurer’s Office is also working with the state’s banking sector, Vermont Economic Development Authority and the Vermont Municipal Bond Bank to fill any gaps that may emerge in the flood recovery effort.
“This recovery process will take time, but right now, we need to help municipalities with access to funding and get small businesses open,” Scott said.
Additional federally funded recovery resources are available through FEMA for municipalities and individuals in counties covered by the federal Major Disaster Declaration.
For more information, visit www.vermont.gov/Flood.
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