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March 26, 2020

City: We’re all in this ‘Together’

New Haven Mayor Justin Elicker on virtual press conference.
By Michael C. Bingham

To help New Haven small businesses, non-profits and the city’s vibrant creative community endure this time of trial, the city’s Economic Development Administration has created a new marketing and engagement campaign called “Together New Haven.”

The theme of the effort, outlined during a Thursday morning virtual press briefing, is “Buy Local, Stay Connected” during the duration of the COVID-19 crisis. The objective of the campaign, created over the course of the last two weeks by an ad hoc “economic resiliency task force,” according to New Haven Mayor Justin Elicker, is “to help our community survive today and rebound even stronger” once the medical emergency has abated and the economy begins what is certain to be a long and arduous recovery.

Partners in the Together New Haven campaign include the city’s Economic Development Administration, the state’s Department of Economic & Community Development (DECD) and the Greater New Haven Chamber of Commerce.

Greater New Haven businesses account for some 300,000 jobs, said city Economic Development Administrator Michael Piscitelli regarding the interconnected nature of the region’s economy. More than a tenth of those (31,000) are directly related to the higher-education sector, but the fact that colleges and universities are closed for at least the balance of the academic year disrupts the entire supply chain.

“You can follow the cascade from higher education to support services, hospitality, brick-and-mortar storefronts, hotels and events,” said Piscitelli. “So you can see why it’s important for many of these partners to come together to support people throughout a very large supply chain supporting that economic base.”

Locally, for example, the closing of Yale means that 13,000 undergrads and graduate students — upon whom countless stores, restaurants/bars and other retailers depend — are gone until Labor Day (at least).

DECD Commissioner David Lehman outlined measures state government has initiated to provide a lifeline to the state’s beleaguered small-business sector. On Wednesday DECD and Connecticut Innovations unveiled a “Connecticut Recovery Bridge” loan program to provide immediate loans of up to $75,000 to provide short-term liquidity to small-business owners (up to 100 employees) who have little or no cash reserve to continue operating over the next two weeks.

The zero-interest state bridge loans have an 18-month repayment term. “We expect to do between 500 and 700 of these loans over the next couple of weeks,” Lehman said.

In addition, the U.S. Small Business Administration last week announced that Connecticut small businesses (up to 500 employees — which encompasses 95 percent of all Connecticut companies) would be eligible for Economic Injury Disaster-Relief Loans (EIDLs). These are low-interest loans of up to $2 million to qualified small companies and non-profit organizations with repayment terms of up to 30 years.

Lehman also discussed the new $350 billion Payroll Protection Plan that is part of the $2 trillion emergency stimulus effort just approved by Congress. “This is probably the biggest tool in the toolkit” for business relief, Lehman said.

The loans, sized at up to 2.5 times a company’s monthly payroll (calculated as of Feb. 15), automatically convert to grants if payroll is maintained for a two-month period. The payments, Lehman explained, would be dispersed by banks in Connecticut at no risk to those financial institutions — they would be merely the “cash register,” Lehman explained.

In New Haven, the ‘Together’ campaign seeks to help small companies, creative enterprises and freelancers get through the immediate economic meltdown by encouraging customers to support them in creative ways. These include purchasing gift cards online and rolling out an “online community marketplace” for retailers and creatives to showcase their products and services online so long as they and their customers are shuttered indoors for the duration.

“We are hoping to drive awareness and customers to our New Haven businesses to help mitigate some of the damage to our local economy during COVID-19,” explained city Director of Cultural Affairs Adriane Jefferson.

In addition to retailers and other small businesses, Together New Haven aims to provide a lifeline to artists, freelancers and denizens of the “gig” economy most affected by the economic meltdown.

Culture goes virtual

New Haven is Connecticut’s cultural capital, but its creative community has been profoundly — and likely permanently — impacted by the public-health emergency, as performance spaces, galleries, nightclubs and other public spaces have been closed indefinitely. Some have found ways to adapt: Yale museums, for example, have begun offering virtual tours for the duration of the crisis, noted Market New Haven head Bruno A. Baggetta. “It’s important for people to exercise their brains and their bodies while they’re stuck at home,” Baggetta said.

The city has also unveiled a “Creative Sector Relief Fund” for lower-income creatives and members of the gig economy impacted by the shutdown. According to Jefferson, the fund makes available up to $1,000 per individual applicant from a pool that now is just $60,000, but which she hopes will grow through the generosity of benefactors.

Acknowledging that “$1,000 is not a lot of money right now,” Jefferson said, “We’re feeling very positive about where we’ll be once we all get through this.” 

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