Business & Economy

Panel approves $75 million in grants targeted to hospitality businesses

Kristie and Todd Roling, owners of The Stonewall Inn in Stowe, said this summer that, even with limited reopening, the inn was empty of guests in the wake of the Covid-19 shutdown. Photo by Glenn Russell/VTDigger

The Legislature’s Joint Fiscal Committee has steered an additional $75 million into grants intended to help Vermont’s hospitality businesses survive the winter.

The committee, meeting Saturday, approved many of the items on a proposal the Scott administration issued earlier this month to reallocate some of the state’s $1.25 billion share of the federal CARES Act money. Any money that is still unallocated by the end of the year will revert to the state’s unemployment trust fund.

Hospitality businesses joined forces in recent weeks to lobby lawmakers for more emergency grant funding, arguing that the state’s restrictions on travel, on inns and hotels, and on restaurants have caused millions of dollars in losses over the last eight months.

Tourism is one of the largest industries in the state, and brought in nearly 13 million visitors and nearly $2.8 billion per year before the Covid-19 pandemic, according to the state’s 2017 tourism study. It supported an estimated 32,000 jobs, about 10% of the state’s workforce.

The $75 million reallocation “is a recognition that they play a major role in our economy, and that Covid restrictions have hit them particularly hard,” said Sen. Ann Cummings, D-Washington County and chair of the Joint Fiscal Committee. “They didn’t choose to have their occupancy first shut down and then limited and then shut down again, essentially.”

The state ordered bars and restaurants closed in mid-March and severely limited hotel occupancy, slowly lifting those limits as the rate of Covid-19 infection slowed. This week, with infection rates surging, Gov. Phil Scott announced new limits on travel and on bars and restaurants. 

Two guests at Four Chimneys

While lodging establishments can still accommodate guests, innkeeper Lynn Green said that the national Covid-19 emergency is deterring most people from traveling. She has two guests, both from Massachusetts, at her 11-room Four Chimneys Inn B&B in Bennington. Both quarantined at home before coming, she said.

The Joint Fiscal Committee normally meets three or four times a year, Cummings noted, but has met three times already this month. The panel on Saturday approved most, but not all, of the items in the administration’s proposal. Among its significant moves:

•It rejected a request from the Agency of Agriculture for $700,000 to help meat processors buy equipment they need to expand. Cummings said large Vermont businesses like the Basin Harbor Club, Jay Peak, and Sugarbush are limited to a maximum of $300,000 from the state’s business grants program, which is administered by the Agency of Commerce and Community Development and the Vermont Tax Department.

“There are other sources” of money for meat-processing businesses that need to expand, Cummings said, including the Vermont Economic Development Authority, which provides business loans. “It just didn’t seem like the highest and best use or the greatest need to us.”

•It declined to approve $700,000 for the Agency of Human Services to create a financial support program for people who contract Covid-19 or who are asked by the state Department of Health to quarantine. Financial grants will deter people from working when they should be staying home, Cummings said. But the panel asked the administration to return with a new proposal for that program. 

•The panel approved $6.4 million to pay about $280 each to 23,000 Vermonters who are on disability or supplemental security income. They are among the poorest state residents, Cummings said.

“The thought was we’d like to help them out a little bit too. A lot of them are elderly, they are disabled, and they now can’t get out; they are isolated and the cost of groceries keeps going up.”

Under the $75 million program approved Saturday, hospitality businesses will be eligible to apply for state grants to cover all their unmet economic needs, as measured by the amount of money they made this year between March and the end of September compared to the same period in 2019. The grants will be disbursed as part of a $76 million program approved by the Legislature this autumn. 

‘People are going to fall through the cracks’

Other businesses that have applied to the updated state grants program are eligible to receive a grant for only a share of their losses, not the whole amount.

Cummings said after Saturday’s meeting that she knew some might find that unfair.

“I’m a parent; fair is in the eyes of the beholder,” she said, noting that her own antiques business will lose money this year. “We’re trying to be as fair as we can, and we’re trying to have as great an impact on the economy as we can.”

Like many people working to keep businesses going in some manner this winter, Cummings said she’s holding out hope that Congress will pass another stimulus package with more grant money. So far, efforts for a new stimulus package have been stymied by deadlocks in Washington.

“If that comes, and we’re hopeful something will come, and if the vaccine gets here and it’s effective, that will help,” Cummings said. “I know people are going to fall through the cracks. But if we try and fill all the cracks, then we may not be able to save anyone.”

Green, the owner of Four Chimneys, said most lodging businesses, including hers, face a tough winter.

“Fall foliage is usually when we save our acorns for winter, and that didn’t happen this year, because we did half the occupancy that we normally do in October, and now in November there is nothing,” she said.

Green said she had talked to others in the lodging industry after the meeting.

“We are so appreciative of what has been done,” she said. “We can’t underestimate how hard this winter is going to be. It’s going to be a really tough winter even with this help.” 

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Anne Wallace Allen

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