In the wake of coronavirus, Delaware businesses are struggling, shutting down, and asking for help. Unfortunately, many are not receiving the assistance they desperately need.
The Hospitality Emergency Loan Program (HELP)—offering no-interest loans up to $10,000 per business per month—has recently been expanded from the hospitality industry to include relief for personal care services businesses such as hair and nail salons and barbershops.
While this expansion is good news for some, other businesses are still being left behind.
This week, the languishing hotel industry asked Delaware lawmakers for tax deferments and to help their laid-off workers, but were told this was not a priority and to wait. With over 10,000 Delawareans filing for unemployment in one week, helping businesses and laid-off workers are just priorities they are deferring to address.
Delaware, who consistently ranks in the bottom in the nation relating to business, should take note from what some of the most business-friendly states are doing to compliment the federal coronavirus relief.
North Carolina, a top ranked state for business, is keeping its businesses and workers in mind while addressing the health crisis. The state has offered help for businesses through:
- Expanding unemployment eligibility without placing the cost of benefits related to the coronavirus on businesses.
- Business Edge: layoff aversion strategies and activities to help employers prevent or minimize job losses, by assessing needs and options for “at-risk” firms and addressing those needs.
- The North Carolina Small Business and Technology Development Center (SBTDC) is offering free assistance to small businesses to assess financial impacts of the pandemic, evaluate credit options, and apply for SBA disaster loans.
Georgia has delayed registration and registration fees for its corporations; Utah has combined health actions with economic responses in the “Utah Leads Together” program, and the Utah Governor’s Office of Management and Budget will oversee the project management to ensure the state’s economy can recover quickly from the pandemic.
A Better Delaware recommends our lawmakers enact similar policies to those listed above, as well as implementing the following recommendations from the U.S. Small Business Chamber’s “Resources to Help Your Small Business Survive the Coronavirus:”
- Waiving fees for businesses with low margins
- Offering no-interest loans for businesses
- Cancelling or deferring payment of payroll taxes
Delaware leaders can help our businesses recover now. To do this, the Delaware Prosperity Partnership (DPP) can reallocate their funds used to attract new businesses to helping businesses in the state that have been impacted by the coronavirus pandemic.
The Governor and the legislature have a chance to minimize the impact of this health crisis on Delaware’s businesses, workers, and economy, and boost the First State’s standing nationally again. Policy decisions at this time must be made with caution, as the opportunity to further burden our businesses and economy is great.
Delaware’s senior most politicians admitted their focus is not on helping businesses at this time. Other states with more favorable business climates have already recognized the importance of this assistance and has taken steps early on to mitigate the problem.