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What’s New

Starter kits designed to help Kent County businesses get back to work

DOVER — The Central Delaware Chamber of Commerce, in collaboration with the Kent Economic Partnership and the Greater Kent Committee, are ready to get Kent County businesses closed by the coronavirus pandemic back to work.

That is the primary reason they have created, and recently distributed, 100 “Getting Back to Business Starter Kits.”

The starter kits are designed to be given to small businesses (those with less than 20 employees) who did not have access to some of the supplies they would need to reopen to their customers following Gov. John Carney’s emergency orders that closed non-essential stores and businesses.

Each starter kit, valued at more than $350, contains masks, gloves, wipes, hand sanitizer, disinfectant spray, and no-contact thermometers, as well as coupons and offers that could assist businesses during their restarts.

Each kit also contains a “Getting Back to Business” brochure, which outlines the various procedures and precautions that business owners need to consider prior to a relaunch. The kits were funded through donations by a variety of partners and supporters, including Kent County Levy Court, the city of Dover, Calpine, Chesapeake Utilities, First State Janitorial, Office Pride, Staples and W.B. Mason.

Business owners were eager to pick up their kits last week.

“I was super-duper excited to receive a kit and even more excited after I opened it,” said Nicole Ali, owner of Trini Quizeen. “The items in there will last me for several months and will be a tremendous help.”

Others who received the kits were excited as well.

“It was so awesome,” said Hoong Chow, of Keller Williams. “The items in the kit will help me to protect my clients and myself.”

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Del. unemployment reaches 14% in April as about 75K jobs lost

DOVER – Delaware’s unemployment rate reached a modern record of 14.3% in April, as the state reportedly lost nearly 75,000 jobs in response to the coronavirus pandemic, officials reported Friday.

The state’s seasonally adjusted unemployment rate was in line with the national rate, which sat at 14.7% in April, but it marked a huge jump from Delaware’s 5% March unemployment rate.

At 14.3%, it is also the state’s highest recorded monthly unemployment rate, according to the U.S. Bureau of Labor Statistics (BLS), which started tracking state figures in 1976. It is also 46% higher than the previous record of 9.8% in November and December 1976. The highest monthly rate recorded in the past decade was 8.8% in January 2010, just as the full impact of the Great Recession was felt.

The Delaware Department of Labor’s report, which is taken monthly during the calendar week that contains the 12th day, showed that 66,700 workers were unemployed. Tom Dougherty, chief labor market economist for the department, explained that the monthly unemployment figure is created from looking at continuous unemployment insurance claims as well as a BLS survey of residents on their employment status.

The official monthly unemployment statistic tracks not only those receiving benefits, but also those who ineligible, such as terminated employees and the self-employed, who only became eligible for assistance under a special federal program established under the CARES Act.

While more than 95,000 workers have filed for unemployment assistance in the wake of the pandemic, most because of statewide business closures mandated by Gov. John Carney to stem the spread of the virus, the state also had 19,400 unemployed workers in January, before the pandemic struck the U.S.

Dougherty said it’s important to remember that the monthly report is just a “snapshot” of one week in time.

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Vermont spends $310M of CARES funds helping businesses– will Delaware?

Two months into its emergency order, Delaware has yet to reveal what help businesses may receive and how as we recover from the coronavirus, while other states are offering hope.

An upcoming episode of A Better Delaware’s livestream seriesA Better Discussionwill feature Betsy Bishop, President of the Vermont Chamber of Commerce to discuss Vermont Governor Phil Scott’s recently announced $400 million economic relief and recovery package (stay tuned on our Facebook page for an announcement of the date).

The proposal, funded by the $1.25 billion the state received from the Federal CARES Act, includes $310 million for immediate emergency relief to the most impacted sectors and businesses, as well as $90 million in long-term recovery investments, and offers support for Vermont businesses includes funding for financial, housing, and technical assistance.

“These ideas are the result of talking to many local employers over the last two months to identify what they need now, and what they will need on the other side of this,” said Agency of Commerce Secretary Lindsay Kurrle.

In Delaware, we have yet to take any similar action.

State leaders requested flexibility in use of CARES funds, with no plan in place for how to use it.

In Tuesday’s episode of A Better Discussion, guest Bob Older, President of the Delaware Small Business Chamber of Commerce, expressed that when it came to Delaware’s response to the virus, “our small businesses were left in the dark.”

Older continued, saying businesses have been forced to remain closed for longer than was necessary, and much to the detriment of their operations and ability to reopen. The two month long stay at home order will force many businesses to shutter permanently.

Delaware was near last in the nation in the U.S. Small Business Administration Paycheck Protection Program funds and offered state assistance through the H.E.L.P. loans, only to the hospitality industry, leaving many businesses helpless. State reserves, such as the $252.4 million in our Rainy Day Fund, tens of millions in the Strategic Fund, and $126.3 million from budget smoothing weren’t utilized to help either.

As we continue to wait for a phased reopening and an announcement of an economic plan, watching other states move forward with economic and business assistance feels like salt in the wound—a wound that has been left open for far too long.

Unfortunately, this isn’t the only instance of Delaware lagging behind in an economic response during the virus. Other states launched business and economic task forces weeks before announcing stay at home orders, whereas Delaware’s Governor joined with other states in a task force weeks after forcing businesses to close, and has yet to proceed with a state-focused initiative.

Early on, state leaders responded to industry pleas by telling them that the health side was their only priority, and businesses would have to wait.

Two months later, and with other states pushing forward, you have to wonder: just how long are our floundering businesses and 100,000 unemployed Delawareans expected to wait for our state leaders to act?

Was Delaware’s unemployment system prepared for coronavirus crisis?

From the News Journal

Facing more than 90,000 initial jobless claims since the coronavirus pandemic hit Delaware, state officials estimate they will run out of unemployment funds around the end of June, when they plan to start borrowing from the federal government to pay out benefits.

Like other states, Delaware has been draining its unemployment insurance trust fund during the pandemic-triggered economic downturn. But unlike more than half of states, Delaware didn’t enter the crisis prepared.

Instead, Delaware is one of 22 states and territories whose unemployment trust funds weren’t funded to a level of solvency that the U.S. Department of Labor says is adequate to weather a recession. The state had close to $173 million in its unemployment fund this January.

Delaware Secretary of Labor Cerron Cade said the way the state taxes employers has hindered the unemployment fund’s growth.

Experts and the federal government recommend building up the state’s unemployment reserves while the economy is strong, and drawing on the funds during recessions. Unemployment funds are maintained with taxes employers pay on wages for workers.

Nineteen states increase the amount employers must pay into the unemployment fund as wages grow.

But in 2013, Delaware lawmakers mandated that the higher the unemployment insurance fund, the lower the tax burden on businesses. That means the fund grows at a slower rate the closer it gets to solvency.

“On the back end of that, as the trust fund begins to get to a lower balance, we start taxing employers more,” Cade said. “During a time period when you want employers to hire more, why would you make it more costly for them to hire someone?”

Cade said the state was considering other formulas to administer the unemployment insurance tax.

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General Assembly Announces Plans to Reconvene Legislative Session

From Delaware House Democrats
House, Senate will conduct business through virtual session to meet constitutional obligations

DOVER – The leaders of the Delaware General Assembly announced plans Thursday to virtually reconvene the second half of the 150th legislative session, starting later this month.

Following extensive legal and logistical research, the General Assembly will implement a plan that allows the House and Senate to meet to their constitutional obligations efficiently and effectively, while also protecting the public, staff and legislators from the risk of spreading COVID-19.

“From the moment we first postponed session in March, legislative leaders said our priority was protecting the health of legislators, staff and the public. That priority has not changed,” said House Speaker Pete Schwartzkopf. “During this State of Emergency, we have worked with and through the governor’s office to implement many of the policies we normally would have passed through legislation.

“But we also have been working on how the General Assembly can resume session during this public health crisis. Unfortunately, it is not as simple as setting up a video conference call. We have to lay everything out carefully so that we are prepared and can function as normally as possible when we reconvene. We believe we have a responsible plan to share with the public.”

Until recently, Delaware law required the General Assembly to meet in person in Legislative Hall to conduct business. However, the Legislature amended the Delaware Constitution in 2018 to allow for session to take place in alternative locations during an emergency. Given the current circumstances, legislative leaders have determined that the best and safest way to meet is through a virtual session.

“Thankfully, we have the technology to hold this unprecedented session in a way that will protect the public’s health while also allowing the public to follow the proceedings in a way that’s very similar to how we conduct business at Legislative Hall,” said Senate President Pro Tempore David McBride. “Our main priority will be to ensure our state agencies can continue to provide the vital services our residents depend on. That means passing a balanced budget that accounts for a sharp decline in revenue and the cost of protecting the health of our most vulnerable residents.”

Under the plan, legislative leaders issued a joint letter to all General Assembly members Thursday (attached to this release) outlining the process for the next meeting of the Legislature.

 

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Desperation grows for restaurants, retail as recovery in sight

From Delaware Business Times

“Desperate times call for desperate measures.”

That’s how Dominic Marino, general manager of Gallucio’s Italian Restaurant, recalled his decision this week to dress as Santa Claus and walk the streets near his Trolley Square-area business to drum up some attention from prospective customers.

The days at the restaurant are a hit-or-miss experience due to state-imposed limitations to takeout or delivery service only, Marino said. On Mondays, it’s common for the restaurant to ring up only $200 in total sales.

“If we don’t open up soon, we will be forced to shut our doors permanently,” he said.

Marino isn’t alone.

With Delaware’s economy still largely shutdown amid the spread of the COVID-19 virus, many small business owners in the state are growing weary of the lack of customers and fearing that their doors may never reopen.

A late April survey of 285 Delaware businesses found that one in four believed they only had enough cash to last another four weeks and more than 80% of respondents reported declining revenues. Workers have already suffered, with the survey by the state’s economic development agency Delaware Prosperity Partnership (DPP) and the state’s chambers of commerce finding that 1,900 workers had been furloughed, laid off or terminated by respondents amid the pandemic, accounting for about 17% of their total workforces.

Gov. John Carney has faced increasing public pressure to begin easing restrictions on businesses as the lockdown lingers on. This month, he has opened Delaware’s public beaches, community pools, ice cream shops, and salons and barbershops under strict limitations, but many of those hit hardest, including restaurants, small retail shops and hotels, are still waiting for significant help.

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Harm vs. Good

The past six weeks have been an difficult and trying time. Jobs are being lost, businesses are closing, and the rules seem to change by the day.

A Better Delaware has been committed to advocating for you, your jobs, and your businesses at this time. We have been working to keep Delawareans informed and aware of the ever-changing situation.

Part of this effort has been hosting a recurring livestream series entitled A Better Discussion, where we cover current issues with experts in order to better inform the residents of the First State.

This week, we were pleased to have Dr. Michael Peterson, Chair of the Department of Behavioral Health and Nutrition at the University of Delaware join us for a candid discussion about the response to COVID-19 and its lasting impact on health and the economy.

Dr. Peterson shared what you won’t hear from many local leaders: much of our response has been ill-advised and more detrimental than the virus itself.

To start, you don’t quarantine the healthy, you quarantine the sick. We overreacted, and the reaction to a situation does not prove the severity of it. In this case, we continue to stand by our initial actions without the hubris to admit we were wrong.

Not only were we wrong in closing our economy, but we were wrong to ignore the unintended consequences of the policies enacted.

He went on to say that economic health is a driving force for individual health, making unemployment a health risk that leads to other detrimental health issues. These include anxiety, depression, opiate use, domestic violence, suicide, and more.

With recent unemployment numbers showing employment down nationally by 20.5M jobs, and an unemployment rate of 14.7%, the lasting impact of the response to the virus may be worse than the coronavirus.

In Delaware, unemployment claims increased 2244.31% from the start of COVID-19 through April.

As for the determination of “essential businesses,” for business owners, their businesses are essential because it is their livelihood. For workers, their jobs are essential because it is how they support themselves and their families, find purpose, and more.

Dr. Peterson was clear that keeping vulnerable populations—such as the chronically ill and the elderly—safe was very important to managing the coronavirus and keeping death tolls low. He believes we could have done this easily without shutting down and forcing people out of work.

As for re-opening, a full opening is likely best. He advocated for businesses to be allowed to do what they do best: adapt, thrive, and weigh risks.

Unfortunately, the damage has been done to the economy and it will take a while to recover. Printing money, shortages, and loss of work/business will have hard impacts on recovery.

Check out the full episode here.

Chambers discuss reopening businesses with governor

From Delaware State News

DOVER — Chambers of commerce representatives statewide met with Gov. John Carney as discussion to further reopen businesses continues during the COVID-19 pandemic.

Following a roughly hourlong conversation Wednesday afternoon, more is planned. The chambers will now meet with Deputy Chief of Staff for Policy Albert Shields and Division of Small Business Director Damian DeStefano, attendees said.

The point of contact connection with Mr. Shields and Mr. DeStefano was crucial for members, Delaware Small Business Chamber President Bob Older said.

“We as a group want to be in on the conversation for the regulations that will be announced coming up,” he said. “If you have regulations in place and businesses are ready to open now then they should be allowed to do so.”

According to Central Delaware Chamber of Commerce President Judy Diogo, “It was a good phone call that had a lot of good comments made on both sides.

“We’re just trying to get businesses open sooner rather than later.”

After the meeting Ms. Diogo said she hopes for businesses returning prior to June 1. On Tuesday, she said May 18 was a target date.

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Guest Column: Why does Gov. Carney dislike small business?

From Delaware Business Times

Commentary from DSBC President, Bob Older

Delaware Small Business Chamber President Bob Older submitted this to the Delaware Business Times as an “open letter to small business owners in Delaware.” 

I want to apologize to all small business owners in Delaware.  I’ve said before that I don’t believe Delaware is very small business friendly.  I have tried to make people understand business in Delaware better and in some cases, we have made great strides. However, with top-level people, it doesn’t appear we have made an impact yet.

I understand we are in difficult times.  I understand it’s a fine line between health and economy and that no matter which direction we all take there may be no right answer.  We care about our loved ones just as much as we care about making a living and putting food on our tables.  It’s not an easy decision and I think we all understand that and the ramifications that come with it.

My personal issue is that our small business owners deserve better.  We deserve better leadership at the very top.   I agree that things needed to be done to prevent our hospitals from being overwhelmed and to protect the most vulnerable of our population.   On a personal level, in my opinion, what we have done since then is not the right answer.

The industries with the best lobbyist get to do things that others could not do.  The governor has said when trends go downward, we will start the processes of reopening.   Which Governor should we listen to and which is running our state?  Seems like Governor Cuomo is making more decisions than the one we elected is doing.   The one we elected says that hospitals are at half of the capacity which we expected.  That is great.   Numbers in New Castle and Kent Counties have had significant drops.  That too is great.  We have allowed dollar stores, big box stores, gun stores and the like to open up and sell more than food.  Reasons?  Either police enforcement would have been too costly or lobbyists threatened potential lawsuits.  Is that what we as a state need to do? Sue?

Over the last few weeks, thousands of people, small business owners, legislators, and most of the chambers of commerce in Delaware have reached out to key people to offer options, make some suggestions and in some cases, demand the state reopen.   Last week, the Governor opened up a few industries, mostly curbside, to help start up the economy — the bare-bones basics to “show” he was doing something.  Instead of saying those that qualified could open the next day, he made them wait four more days.  At the same time, he then pushed the opening of Phase One two more weeks – absolutely contradicting his own statements, charts, actions etc.  THAT makes little to no sense at all.  In most areas, numbers are dropping.  In all areas, hospitals are doing well, as are the people in the state.   So why push it further away?

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Philly Fed chief: Delaware faces uneven recovery

From Delaware Business Times

PHILADELPHIAThe head of the Federal Reserve Bank of Philadelphia told Delaware business leaders Tuesday morning that he expects the state’s banking and finance sectors to weather the coronavirus pandemic while manufacturing will “bounce back” as it subsides. But he also said traffic at the Port of Wilmington and the state’s tourism-dependent beaches may be in for a tough year.

Patrick T. Harker, president and CEO of the Federal Reserve Bank of Philadelphia and the former president of the University of Delaware, outlined an uneven economic recovery for the First State, where New Castle County will likely endure better than Kent and Sussex counties.

Delaware’s travel and hospitality sector – an area where the southern counties are particularly dependent — may face “a longer and more painful contraction,” Harker said in a conference call with the Delaware State Chamber of Commerce. That would be spurred by businesses reducing corporate travel amid the increasing use of teleconferencing software, like Zoom or Skype, and the hesitance of many families to visit crowded places such as Delaware’s public beaches.

“There will be demand. People will still, understandably, have cabin fever and they’ll want to get out on some sort of vacation, but they may take small steps before getting on an airplane or trying to go long distances,” he said.

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