The Massachusetts legislature struck a deal in the early hours of the morning on January 6 in the form of a $626 million economic development bill. The bill, which is a compromise between the House and the Senate and came together after five months of back and forth discussions between the two bodies, is meant to help stimulate the state’s flagging economy and has big implications for restaurants and third-party delivery apps.
Crucially, the bill sets up a $20 million fund to support struggling restaurants, which will be paid out in grants, though it is unclear at the moment if restaurant operators will be required to pay them back. Details surrounding the application process, including the amount of aid individual restaurants can apply for, are also unclear at the moment.
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Massachusetts Governor Charlie Baker rolled out a $668 million relief program on Dec. 23 targeted at helping small businesses, giving priority to those that have been hit hardest by the pandemic, including restaurants and bars. Half of the funds are expected to go to businesses that were unable to access the state’s previous small business aid efforts, which were heavily oversubscribed. Businesses that applied previously but were unable to access state aid will not be forced to re-apply this time around, Gov. Baker said.
The program, which will be administered by the Massachusetts Growth Capital Corp., and paid for in most part by the recently passed $900 billion federal stimulus bill, will provide small businesses with up to $75,000 or three months of their operating expenses. The funds, which will be paid out as grants (and will therefore not need to be repaid), can be used to cover payroll, mortgages, debt, and other operating costs. The sta
BOSTON A day after announcing new business restrictions aimed at preventing a post-Christmas boom of COVID-19, Gov. Charlie Baker launched a massive new $668 million relief fund to help
By Michael P. Norton, State House News Service
December 24, 2020
Michael P. Norton, State House News Service
Up to 35 percent of retail alcoholic beverage licensees and 20 percent of state licensees may not renew in the new year due to the Covid-19 pandemic’s “major economic toll” on bars and restaurants, according to Treasurer Deb Goldberg.
“The outlook for fiscal year 2022 is not strong,” Goldberg told lawmakers on Dec. 15 during a hearing on state revenue expectations for the next budget cycle.
While her assessment was limited to alcohol license holders, rather than the state’s revenue picture at large, the treasurer’s comments underscore troubles in an industry that is scrambling to survive after watching about 250,000 of its 300,000 jobs evaporate when the coronavirus arrived here in March.
Matt Murphy / State House News Service
State House News Service
A day after announcing new business restrictions aimed at preventing a post-Christmas boom of COVID-19, Gov. Charlie Baker launched a massive new $668 million relief fund to help small businesses build a bridge between now and when commerce can return to normal as vaccines begin to arrive.
The small business relief effort dwarfs the $50 million in grants awarded Monday to 1,158 businesses, and could lead to thousands of new businesses receiving checks as soon as next week.
Baker rolled out the new grant fund two days before Christmas and three days before a new set of business restrictions take effect on Saturday, limiting businesses to 25 percent capacity and further restricting the volume of customers they are able to accommodate at any given time.