Maine small businesses to get additional $56M in federal pandemic relief

File photo / Renee Cordes The restaurant industry, made up of many small businesses like these outdoor establishments on Washington Avenue in Portland, has been hit hard by the pandemic.

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By Renee Cordes

Maine small businesses still struggling to recover their footing due to the pandemic will be able to access $56 million in new federal relief via the recently enacted American Rescue Plan.

Signed into law by President Joe Biden in March, the American Rescue Plan is a $1.9 trillion economic stimulus package that reauthorizes and funds the State Small Business Credit Initiative with $10 billion.

Of that amount, at least $56,234,176 will become available to Maine small businesses. The funding leverages federal dollars to provide better access to credit for small businesses and entrepreneurs in regions underserved by venture capital.

“This is a monumental funding opportunity for Maine’s innovators, startups and small businesses,” said Maine Technology Institute President Brian Whitney in Tuesday's announcement.

Among other things he said the program "offers considerable flexibility to the states to design programs that best align with their economic priorities and the specific needs of businesses, adding: "We look forward to working with our ecosystem partners to help deploy the funding to accelerate Maine’s post pandemic economic recovery.”

Help businesses 'get back on track'

U.S. Sen. Angus King, I-Maine, who voted in favor of the American Rescue Plan in March, said the plan's commitment to support small businesses "will help our local businesses get back on track, and I urge all of our state’s eligible small business owners to review the program’s upcoming rollout to determine if it can help their business grow and thrive in Maine."

In a theoretical example of how the plan can help small businesses, the White House website references a hardware store owner named Jesse with 10 employees, half of whom she would have to lay off by spring without urgent funding. Via the American Rescue Plan, Jesse would get a $1,400 stimulus check as well as funding for work-sharing programs to avoid layoffs and access to flexible grants.

The State Small Business Credit Initiative initially operated from 2011 to 2017, after being signed into law through the Small Business Jobs Act of 2010 by then-President Barack Obama.

Under that original program, every dollar of federal investment produced $8.95 of additional small business credit.

DECD 'ready to help'

“Maine small businesses have adapted to the challenges of the pandemic with grit and determination, often reinventing how they do business to keep their employees and customers safe,” said Gov. Janet Mills. “As we work to get our economy back on track, protect our businesses, and protect the livelihoods of Maine people, it is crucial that Maine business owners have access to capital that will help them recover and thrive."

For any business owners wanting to avail themselves of the funding opportunity made possible by the American Rescue Plan, she suggested getting in touch with the Maine Department of Economic and Community Development, "which stands ready to help.”