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April 7, 2020

Businesses to Lamont: We need money — and when will this be over?

By Michelle Tuccitto Sullo

With many small companies across Connecticut struggling due to the coronavirus crisis, getting access to federal stimulus money is critical to their survival. 

The Greater New Haven Chamber of Commerce and Quinnipiac Chamber of Commerce hosted a joint webinar Monday, a Q&A session with Gov. Ned Lamont and Department of Economic & Community Development Commissioner David Lehman, for an update on how the state is dealing with the coronavirus and its impact on business.

A key issue for many small businesses is getting the money available through the federal Paycheck Protection Program, a $349 billion emergency loan program which is part of the Coronavirus Aid, Relief, and Economic Security Act (CARES). (See related story.)

The U.S. Small Business Administration launched the program on Friday, April 3.

Lamont and Lehman said they have been hearing from the business community about their initial challenges with the application process, including technical glitches and not all banks participating right away.

“It’s been a bit of a rocky start,” Lehman acknowledged. 

Lehman said there was a rush of applications on Friday, and as of Monday, all banks should be participating and working with customers to provide them whatever assistance they need. He estimated that some 1,300 loans had been processed for Connecticut’s small businesses as of early Monday.

The program provides forgivable loans of up to $10 million for businesses suffering a negative financial impact because of the pandemic, according to the SBA.

“My hope is that a lot more people get their applications in this week,” Lehman said. “We want to make sure all of our businesses are focused on those loans and accessing them.”

Garrett Sheehan, chamber president and webinar host, indicated Monday afternoon that, “A lot of businesses have gotten through.”

“Some had difficulties because they tried on Friday or Saturday, but by this afternoon every bank I am aware of was accepting applications,” Sheehan said. “There have been a few other difficulties with specific banks where they are already maxed out on loans, but I know they are working through that.”

Lamont urged businesses to “get to the front of the line if you can… so you get this help.”

What should we expect next in the New Haven area? 

When asked by participants what businesses can expect over the next few weeks, Lamont predicted we are about a week from seeing the peak of coronavirus cases in Connecticut.

“The situation is changing by the hour, and we know it impacts small businesses,” Lamont said. 

As of Monday, Lamont reported the state had 6,906 people test positive for the virus, with 206 deaths. 

Lamont told webinar participants he expects the rate of infection and hospitalizations to continue to rise, but he had some positive news: The state still has capacity in terms of hospital beds.

“Our health-care system is bending, but not breaking,” Lamont said.

“Fairfield County was hit hard and early, but Yale New Haven Hospital still has good capacity,” he added. “Our social distancing may be having a positive impact.”

Marna Borgstrom, CEO of the Yale New Haven Health system, said Tuesday it had 602 in-patients with COVID-19 in its hospitals currently, with 325 of them in Yale New Haven Hospital. The system’s hospitals in Bridgeport and Greenwich have also seen a significant rise in patient admissions. However, Borgstrom noted that there has been a “limited impact” so far in the system’s New London and Rhode Island hospitals. 

According to Borgstrom, there have been 53 fatalities throughout the Yale New Haven Health system, but she stressed, “Many are getting healthy and have been able to go home.”

Lamont said he anticipates that Connecticut may experience “rolling hot zones” of infections for months. He would like to initiate antibody testing, so people who have developed immunity to the virus can get back to work. 

Are businesses following the rules?

The business community also questioned both leaders about whether businesses deemed “non-essential” have been complying with Lamont’s March order to close or allow employees to work from home.

Lamont estimated that “95 percent” of non-essential businesses are taking the order seriously. For those that aren’t, he said, “We are giving people a friendly reminder.”

Lehman said the state is also planning to issue rules and best practices for essential businesses this week. 

How can Connecticut come out of this a stronger state?

The business community is looking toward the future, when the virus is behind us, and wondering how leaders believe the state can make a comeback. 

“We had so much momentum coming into this and I don’t want to lose it,” Lamont said. 

Lamont said he wants to continue the state’s efforts to train the workforce for in-demand jobs. He noted how different sectors have come together to help, such as how banks have expressed willingness to extend credit and utilities have agreed not to shut off service for nonpayment.

“I hope we can keep positive momentum going and safely move people back to the workforce,” Lamont said. “We are going to get through it and be stronger for it.”

Lehman, meanwhile, said the most important thing is communication, so businesses are made aware of the growing number of programs available to help them. 

“We want to make sure people are using them,” Lehman said. 

Lamont said he wants feedback from the business community when he issues executive orders.

“We are trying to do everything right and can refine things based on your input,” Lamont said.

Visit the chamber’s website for links to COVID-19 resources. 

Miss the webinar? You can view the full program HERE.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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