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March 26, 2020

Coronavirus: Blumenthal weighs in on stimulus package to biz community

The Capitol Building in Washington, D.C.
By Michelle Tuccitto Sullo

Federal lawmakers have struck a deal on a $2 trillion federal economic stimulus package, and U.S. Sen. Richard Blumenthal provided the area business community with an update Wednesday on how this can help the Connecticut economy.

The Greater New Haven Chamber of Commerce hosted a business town hall webinar with Blumenthal Wednesday morning, with more than 250 members of the business community taking part in the live-streamed session.

“I have been talking to people all around the state, from health-care to small-business leaders, and I see the struggles,” Blumenthal said. “Small businesses are going through the excruciating pain of laying people off.”

Federal lawmakers feel the urgency of the moment, and the goal has been to get a package put together quickly, he said.

Photo | Contributed
U.S. Sen. Richard Blumenthal.

“Connecticut is on the border with New York, now the epicenter of the coronavirus for the U.S.,” Blumenthal said. “We are going to see cases surge here.”

The package, the result of a deal between congressional leaders and Trump administration officials in the early-morning hours Wednesday, includes $350 billion for small-business loans that may be converted to grants if businesses keep their employees, and $500 billion for distressed businesses such as airlines and the hotel industry, Blumenthal said. The remainder will be divided up among the health-care industry, state and local governments, and individuals and families.

“We are trying to help everyone — we have tried to do very quickly what normally would have taken months,” Blumenthal said. “I hope we can get money out as soon as possible.”

The goal is for the money to go out within days, rather than weeks, according to Blumenthal, though he noted there will still need to be oversight and transparency to the process.

Chamber President Garrett Sheehan, who moderated the webinar, relayed questions from participants to Blumenthal. One big question for everyone: “How do you get the money?”

The U.S. Small Business Administration (SBA) will be in charge of handling the loans, Blumenthal said.

Participants also wanted to know if they can rehire their already laid-off employees, get a loan and then later have the loan forgiven. Blumenthal responded with a “Yes.”

If any business has already started the process of applying for a disaster-relief loan, this application should still be good, but Blumenthal urged business applicants to check with the SBA.

The package will expand unemployment compensation insurance, so most workers can get close to full pay for four months, Blumenthal said. He said this may be extended later. If people have higher salaries, they likely won’t get full pay if they are laid off, he said.

“The goal here is to make sure the economy’s demand is surged,” Blumenthal said. 

Getting the virus under control and ensuring safety first are key, he noted: “People won’t spend money if they are afraid to go to the mall or to stores.”

Participants also asked if Blumenthal has any idea what the rest of the outbreak might look like, and if what Connecticut has done so far will have any impact.

“We are going to see a surge in cases,” Blumenthal said. “We don’t have a vaccine or cure yet. We have to prepare for the worst and hope for the best. We may see a resurgence in the fall — this challenge is going to be with us for a while. We all hope staying home and social distancing will succeed.”

Blumenthal indicated that this package likely isn’t the end, and lawmakers will have to revisit and consider additional measures — and additional funding — down the road.

“If you have ideas for what you need and what can help, please get them to me, for consideration for the next round,” Blumenthal said.

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3: Greater Hartford Congressional Delegation

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