COVID-19: Practical CT Resources

By: Ben Michaelson

March 19, 2020

This afternoon, Governor Ned Lamont and the Connecticut DECD Commissioner David Lehman shared how the state is responding to the economic dimensions of this crisis. Below is some useful information in the event that it can provide help and / or  hope to you as you navigate these times. This is where we come together to help build the foundation of the next stage, so if I can be of any assistance, please contact me. I am happy to have initial discussions with you “off the clock.”

From DECD surveys it was indicated that approximately:

      • 40% of CT businesses felt prepared for an event like this with contingency plans in place.
      • 50% of CT businesses are working as usual.
      • 36% of CT businesses are working some type of reduced process.
      • 12% of CT businesses have closed.
      • 80% of CT businesses expect reduced sales.
      • 45% of CT businesses are already experiencing supply chain disruption.

The Governor has advised that:

      • The State believes that businesses are doing great with social distancing.
      • The economic ramifications will be worse than the 2008 downturn.
      • Unemployment claims have been up 20x over normal.
      • We could be looking at 3 – 9 months of disruption.
      • Business should have employees stay home if non-essential and / or can work remotely.
      • There is no current consideration to shut down manufacturing.
      • There is no current consideration to shut down construction.
      • “Take away” dining will allow alcohol sales (but not delivery, which is in consideration).
      • The local response has been very good, so the State is hoping to not implement any type of statewide shutdown, however people must stay socially distant.

Available Assistance:

      • Payroll:  The DOL is relaxed unemployment requirements including allowing temporary layoffs and furloughed workers to obtain benefits; and extending the shared work program to allow for partial reduction in hours of 10-60% with the employer and the DOL sharing the payroll cost by such percentage.
      • Lending: SBA is offering disaster loans of up to $2MM on 30 year terms @ rates of 2.75 to 3.75%.
      • Bridge Loans: The DECD is close (e.g. early next week) to making low cost bridge loans available for working capital at 0 to 1% rates for terms of up to 12 month.
      • Relief: The State is allowing many types of delayed payments, including delayed payments for DECD / Small Business express loans (3 months), tax payment date extensions (to June 15), and CT Student Loan payments (forbearance program); all to free up capital for businesses.
      • Regulatory Relief: Many existing regulatory requirements are reduced to allow sales outside of normal regulatory requirements (e.g. CT DSS is allowing telemedicine by telephone for providers, etc.).
      • Utilities: No utilities may be shut off at least through May 1 (the State is working on an extension here).
      • Sick Leave: Fed law is requiring employers with <500 employees to provides 2 weeks of paid sick leave (at 2/3 normal pay rate and certain caps) and FMLA leave to employees affected by coronavirus personally or as caretakers, which will be reimbursed as a tax credit (note this is not cash relief so working capital will still be affected). More details at this link.
      • Stimulus: Additional government stimulus, including for small and medium businesses, is currently being discussed, no specifics yet.
      • CT Innovation: Has a $60MM fund for bridge loans and long term loans available to their currently supported companies.

Should you have any questions regarding, or need any help with these resources, please contact us.

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