Today, the Baker-Polito Administration announced a $774 million comprehensive
plan to stabilize and grow the Massachusetts economy. The plan focuses
on getting people back to work, supporting small businesses, fostering
innovation, revitalizing downtowns and ensuring housing stability.
Partnerships for Recovery begins today by directing $115 million in new
funding to small businesses and Main Streets hardest hit by the COVID-19
pandemic and for workforce training efforts. Additionally, the
Administration is aligning multiple funding sources, both existing and
proposed, to appropriately respond to the crisis.
Partnerships for Recovery supports five key recovery efforts:
- Getting Massachusetts back to work
- Supporting small businesses
>Revitalizing downtowns
- Supporting housing equity and stability
Governor
Charlie Baker, Lt. Governor Karyn Polito, Housing and Economic
Development Secretary Mike Kennealy, Labor and Workforce Secretary
Rosalin Acosta, and Administration and Finance Secretary Michael J.
Heffernan joined Joe Kriesberg, President and CEO of the Massachusetts
Association of Community Development Corporations to announce the plan
at the Gardner Auditorium.
“This
plan represents a comprehensive strategy to get people back to work and
to support the small businesses hit the hardest by the pandemic,
putting the Commonwealth on a path to recovery,” said Governor Charlie Baker. “By
leveraging existing tools and programs and implementing new ones this
plan will allow us to make critical resources and assistance to those
who need it most available now.”
“While
we continue to combat this pandemic, this plan takes an approach that
addresses key needs of the businesses in downtowns and main streets,
provides housing support for vulnerable families, and opens new doors
for people seeking to return to work,” said Lt. Governor Karyn Polito. “While
we acknowledge we still have a ways to go, this plan will help to
jumpstart our innovation economy and position Massachusetts to be on a
path for success.”
- Putting
$115 million to work right away for small businesses and workforce
training, including more than $25 million to get people back to work;
- Directing $323 million in existing capital programs as part of the response to continue doing more of what works;
- Filing
for $122 million through the Revised H.2 budget to supplement existing
funding in support of struggling Main Street businesses and skill
building for residents;
- Steering $43 million in Federal, trust and other state funding toward our most critical needs; and
- Committing $171 million to keep people safely housed during the pandemic.
Getting People Back to Work
In
order to get people back to work, new investments are being made to
build workforce skills, growing training programs and pathways, forging
new partnerships between employers and workers, and supporting internet
connectivity to facilitate remote work and online career advancement.
The more than $25 million available now includes:
- $10.4
million to engage Massachusetts employers by expanding workforce
partnerships with large employers in target sectors to create aligned
statewide training-employment pathways;
- $9.2 million to subsidize internet for low-income populations, and to expand hot spots in unserved and underserved communities;
- $3.2 million to modernize MassHire virtual pathways to assess and connect UI claimants to appropriate services and supports;
- $2
million to bolster manufacturing training by purchasing a standardized
virtual training program to increase workforce for the manufacturing
sector; and
- $300,000
to supplement $8.4 million toward Career Technical Institutes in H.2 to
help close the skills gap for skilled technician jobs and align
training to industry needs.
An
additional $54 million is available to support workforce recovery
efforts through existing programming such as the Skills Capital Grants
program, the Workforce Competitiveness Trust Fund, and the Workforce
Training Trust Fund.
Revised
House 2 also proposes $17.9 million in workforce funding, including
$8.4 million in funding to transform vocational high schools into Career
Technical Institutes running three shifts per day. This initiative is
designed to train 20,000 new workers over four years in skilled trades
and technical fields including plumbing, HVAC, manufacturing, and
robotics. This will consist of a combination of enrolling more high
school students in high-impact vocational trade programs and expanding
capacity for adults to earn industry-based credentials, aligned to
apprenticeships and post-secondary degrees.
"These
funds will provide critical re-employment services to our workforce,
helping people make the transition from unemployment benefits to good
paying jobs in some of the Commonwealth's key long term job growth
sectors," said Secretary of Labor and Workforce Development Rosalin Acosta.
Direct Support to Small Business and Main Street
To
generate economic growth amidst the COVID-19 pandemic and support Main
Streets across Massachusetts, the Administration is investing $322.8
million in direct support of small and diverse businesses and local
communities. This funding includes grants (see details below) to the
hardest hit small businesses, especially small businesses owned by
women, minorities, veterans, or members of other underrepresented
groups. These grant awards will allow small businesses to cover expenses
such as rent, payroll, and utilities as they get back on their feet.
Additional funding will support small businesses through hands-on and
personalized technical assistance, including targeted support for women-
and minority-owned businesses around digital and online technology as
their business model pivots away from a brick-and-mortar location.
Many
communities have seen their Main Streets and downtown districts hit
particularly hard by the pandemic, and new funding aims to help cities
and towns plan for short-term innovations and long-term recovery. A new
$10 million round of the Shared Streets and Spaces Grant Program will
continue to help cities and towns quickly implement or expand
improvements to sidewalks, curbs, streets, on-street parking spaces and
off-street parking lots in support of public health, safe mobility, and
renewed commerce in their communities. Separately, local recovery
planning grants will soon be available to cities and towns to assist
with long-term planning for their business districts. A total of $10
million is available for this program.
To
support the museums and other cultural facilities that have faced a
particularly challenging reality this year, but remain a cornerstone of
what Massachusetts offers to visitors, these institutions will be
eligible for $10 million in Cultural Facilities Operating Grants. This
funding will help these organizations to make safety improvements and
other upgrades to allow them to continue to offer their unique
attractions and exhibits.
As
part of this recovery plan, the Governor’s recently filed revised
budget proposal recommends over $100 million in additional funding for
economic recovery and development efforts, including $35 million for
community development financial institutions (CDFI) grants and loans,
and $15 million for matching grants for capital investments by
businesses with 20 or fewer employees. Additionally, more than $115
million in existing capital through programs such as MassWorks, and
those in the MassDevelopment portfolio (Brownfields Redevelopment Fund,
Site Readiness Program, Transformative Development Initiative, and
Collaborative Workspaces), will be leveraged in support of economic
recovery. This recovery plan complements the Administration’s $275
million economic recovery package, which was announced in June.
Small Business and Main Street Highlights (new funding):
- $50.8 million in Small Business Grants to help the hardest hit businesses;
- $10 million to continue funding the Shared Streets and Spaces Program;
- $10 million for local recovery planning grants to support cities and towns;
- $10 million to support cultural facilities such as museums;
- $8.3
million in small business technical assistance to help businesses
access grant programs and loans, as well as help build business
management skills, resilience, and other support in navigating pandemic
impacts;
- Including $2.3 million to provide personalized technical assistance to woman- and minority-owned businesses;
“Our
current circumstances call for a plan with the size and scope to match
the urgency we need to address the most pressing challenges we now
face,” said Secretary of Housing and Economic Development Mike Kennealy. “By
targeting vital resources toward these key areas, this strategy will
allow us to lay a solid foundation for our path to recovery.”
“During
this unprecedented public health emergency, the Baker-Polito
Administration is continuing to invest significant resources to support
recovery and growth initiatives for small businesses and Main Streets
across Massachusetts,” said Secretary of Administration and Finance Michael J. Heffernan. “Through
close coordination with federal, state, and local partners – including
our Legislative colleagues – we are proud to put forth a plan that
thoughtfully invests funds from multiple sources to equip employers with
the tools, resources, and supports to help navigate the new COVID-19
landscape.”
“We
greatly appreciate Governor Baker’s sense of urgency to move these
grant dollars now, while also working with the Legislature to secure
additional funds in the state budget and the economic development bill,” said
Joseph Kriesberg, President of the Massachusetts Association of
Community Development Corporations and Board Member of the Massachusetts
Growth Capital Corporation. “Small business owners have sacrificed
to help keep all of us safe and healthy. This initiative is our
opportunity to have their back.”
Additional Investments
In
order to keep people safely in their homes during the pandemic and
support small landlords with expenses, the Administration recently
announced $171 million in support of the Eviction Diversion Initiative.
This comprehensive strategy includes funding to help to cover housing
costs such as rent and mortgage payments, invest in new programs around
mediation and legal representation, and provide repaid rehousing when a
tenant is evicted. Additionally, the Administration continues to invest
in the Commonwealth’s stock of affordable rental housing with $121
million in direct subsidies.
Massachusetts
has long been a hotbed of innovation and creativity in science and
technology, and sectors such as the life sciences and advanced
manufacturing are not only critical to the innovation economy, but also
continue to contribute to the response to the coronavirus. To ensure we
continue to lead in this space, $62 million in existing capital funding
through the Massachusetts Life Sciences Center, the Massachusetts
Technology Collaborative, and MassVentures is available to support
recovery and growth.
Small Business Grant Program Details
Massachusetts
Growth Capital Corporation (MGCC) is administering the Small Business
Grants program, with $50.8 million available beginning today. Grant
awards range between $25,000 – $75,000, and eligibility criteria and
applications are available here.
As
part of this grant program, preference is given to small businesses
whose owners are women, minorities, veterans, members of other
underrepresented groups, or focused on serving the Gateway Cities of
Massachusetts, who have been unable to open and those most adversely
impacted by the COVID-19 pandemic. Preference is also given to
applicants that have not been able to receive aid from other federal
programs, including PPP and other relief related to COVID-19.
The program has two distinct funding “doors” based on business size, with different eligibility criteria, which is available online.
Applicants must review the information to determine which program to proceed with applying.