Northam proposes $353 million of federal funds for Virginia businesses
(The Center Square) – Gov. Ralph Northam is proposing Virginia use $353 million in federal COVID-19 relief funds to help small businesses and industries that have been the hardest hit by the pandemic.
Funding for the programs comes from the American Rescue Plan, which passed Congress and was signed by President Joe Biden. The specific allocations will need to be approved by the General Assembly before they can get out to businesses.
“Virginia is roaring back stronger than we could have imagined one year ago, but small businesses are the backbone of our economy, and they need additional support to get back on their feet,” Northam said in a statement.
“With the American Rescue Plan, we have a once-in-a-generation opportunity to rebuild from the impacts of the pandemic, revitalize our communities, and invest in our shared prosperity,” the governor said. “That’s why I am proposing $353 million to bolster the Commonwealth’s successful recovery initiatives that target our hard-hit tourism and hospitality sectors, main streets, small businesses, and nonprofits.”
The plan would include $250 million for the Rebuild VA economic recovery fund, which awards grants to small businesses and small nonprofits that can demonstrate they have been negatively affected by the pandemic. Since the program was launched last August, it has provided $120 million in federal money to more than 3,000 small businesses and nonprofits. The governor’s office said they are seeking an expansion in funding to address the continued demand.
Another $50 million would be directed to help the travel and hospitality industries through Virginia Tourism Corporation initiatives. Some of the funds would go to the creation of a Virginia Tourism Recovery Program, which would give funds to 114 destination marketing organizations, and some funds would help sports and meeting marketing programs.
The final $53 million would be directed toward the Industrial Revitalization Fund and the Virginia Main Street program. The former works with local governments to jumpstart industrial projects with assistance on site identification, location preparation and the transformation of derelict structures. The latter helps revitalize small towns and will focus on minority and immigrant communities.
Northam’s proposal received immediate support from Democratic leaders who hold a small majority in both chambers of the General Assembly.
“This is another example of our work to ensure Virginia’s small businesses have the support they need,” House Speaker Eileen Filler-Corn, D-Fairfax, said in a statement. “As we emerge from COVID-19, these continued investments will help working families and put millions back into our quickly-recovering economy.”
Senate Majority Leader Dick Saslaw, D-Fairfax, said he is grateful for the federal funding.
“I am grateful to Democrats in Congress for providing this critical funding,” Saslaw said. “Together, we will get this relief directly into the hands of small businesses, families, and communities across the Commonwealth.”
A spokesperson for the House Republicans told The Center Square they are currently reviewing the proposals. A spokesperson for the Senate Republicans did not respond to a request for comment.
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