$50 million fund created to help small businesses affected by winter storm

A legislative committee unanimously approved a proposal to allocate tens of millions of dollars to help small businesses affected by severe winter storms over the past three months.

The bipartisan 10-0 vote by the Innovation, Development, Economic Advancement and Business Committee and the interest of Gov. Janet Mills means the bill could be funded in the supplemental budget currently before lawmakers. It suggests that it is high. review.

“This is an important bill,” said Rep. Lucas Lanigan (R-Sanford). “I don’t want it to sit on a shelf with other pieces that I don’t have money for.”

The bill would establish a $50 million Small Business Weather Emergency Relief Fund to provide relief to non-profits and logging companies damaged by storms starting in September and only if storm damage occurs in Maine and its businesses. The subsidy will be allocated to companies with fewer than 500 employees, including companies. He plans to stay in the state.

Only damages caused by the storm that caused the governor to declare a disaster or civil emergency will be covered.

The funds could be available by June 30, when the financial year ends, and could also be used to cover retail inventory losses. The committee then amended the bill to allow grant money to be used to repair multi-use trails, trailheads and trailside facilities damaged by the storm.

The Ministry of Economic and Regional Development is expected to develop regulations for the program, including eligibility guidelines and application and distribution processes, by March 30. DECD informed the committee that an additional one-time allocation of $27,000 will be required to operate the program.

“The governor’s office has made it clear that they support this,” said Sen. Craig Hickman, D-Winthrop, the bill’s sponsor.

“The Governor recognizes the severe hardship and damage the storm has caused to businesses across Maine and is committed to working with Senator Hickman to assist in recovery,” Mills spokesman Ben Goodman said in a statement. I’m interested in that.” “Her administration looks forward to further engagement with him on this bill.”

Maine businesses, especially along the coast and major rivers, were hit hard by this winter storm.

The December storm dumped 6 inches of rain on central and central Maine, killing four people and causing widespread flooding along major rivers.

Two storms hit coastal communities in four days in January. Heavy rains, 90 mph winds, and astronomical storm surges destroyed fishing piers, beaches, roads, and other coastal infrastructure.

Mills’ budget includes funding to help communities strengthen infrastructure such as waterfront piers and buildings, culverts, stormwater and drinking water systems to help them weather future severe storms that will become more frequent due to climate change. Includes a separate $50 million commitment. That money comes from the state’s budget stabilization fund, or “rainy day” fund.

Hickman’s bill calls for one-time funding, but said it would establish a permanent program that could receive additional allocations in the future, including private funds and additional federal funds that could go to the state. .

“Our analysis shows that it exists because it is statutory,” Hickman said. “It needs to be abolished to make that impossible.”

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