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04/01/2020 08:00 AMWith executive orders from Governor Ned Lamont ordering the shutdown of every non-essential business in the state and with restaurants and food-service establishments facing many other restrictions due to the ongoing coronavirus pandemic, a Madison task force put together by First Selectman Peggy Lyons is attempting to guide and advocate for local businesses during the crisis.
The task force is headed by Selectman Bruce Wilson, and though it will likely have relatively little direct power as far as providing cash or enacting significant policy changes, both Wilson and Lyons told The Source they hope to provide residents with a hub of information and a liaison to state and federal programs that will be able to do those things.
Madison business owners, like many across the state and across the country, are likely to face an unprecedented struggle to stay afloat as much economic activity grinds to a halt in the face of the pandemic.
Economic Development Commission Chair Ryan Duques took a survey of 58 local businesses in the wake of the crisis, asking how the crisis was, or was likely to affect them in the near future.
According to that survey, 94 percent of Madison businesses said they had been or would be affected by the crisis; 81 percent said they were worried about paying their rent or mortgage in the next three months, and close to 60 percent said they were concerned about making payroll within the next month.
One of the task force’s first big initiatives was a virtual videoconference and Q&A sessions held March 27, which was attended by Lyons, State Representative Noreen Kokoruda (R-101), State Senator Christine Cohen (D-12)—herself a business owner in Madison—and other local officials.
Most of the questions and concerns brought up at that meeting centered around issues related to ongoing or upcoming federal and state aid, as well as state and federal programs that can assist businesses and employees affected by the crisis.
One such program is a $25 million small business no-interst loan program that will offer a maximum of $75,000 to businesses with fewer than 100 employees.
Cohen and Kokoruda both spoke positively of this program in qualified terms, though Cohen said considering the scale of the current crisis, $25 million was “not a lot.”
“The demand will exceed the supply,” she said.
One of the most important things any and all business owners and workers affected by the crisis can do is to sign up for unemployment benefits, according to the panelists.
Cohen said that it was her understanding from the State Department of Labor that everyone—even those who file as sole proprietors, independent contractors, or are self employed—should apply for benefits.
The process “may be a little bumpy,” she said, but that sooner rather than later will be best for anyone dealing with economic hardship right now.
Another very hot topic was the question of state sales taxes. Businesses are required to submit sales and use taxes at the end of March. For some businesses, that payment is a significant amount of money.
Wilson told The Source that deferring or waiving that payment entirely could be a huge boon, and give businesses enough operating capital to stay afloat for weeks.
Cohen said she was in favor of those taxes being waived, and at the very least, the state could forgive any late fees accrued if they are not paid on time.
Many of the issues that business owners are currently facing are individualized and complex, the panelists emphasized. From a general, common-sense standpoint, Kokoruda said it was “really important” that all business owners work closely with their accountants and legal counsel to ensure they are getting the proper answers for specific questions.
“We’re all learning this day to day,” Kokoruda said.
Another avenue, according to Wilson, is banks or financial institutions. He said that “unlike in 2008,” most banks were “pretty healthy” right now, and he expected businesses would be able to negotiate loan repayment plans with their lenders.
At the local level, Lyons said she was asking any Madison business to reach out to her with any issue or concern that could be addressed by municipal policy. The town is looking to make tweaks to try to streamline processes, she said, and recently suspended a ban on single-use plastic bags after some businesses requested it.
As far as how the town was dealing with the crisis financially, Lyons said Madison was following state guidelines as far as employee staffing and benefits, but if the crisis goes past April 20, they would “have to rethink a lot of things.”
“The one thing we don’t want to do is make rash quick decisions on an interim basis...that could have long term implications,” Lyons said.
For more information on Connecticut state programs for small businesses during the coronavirus crisis, visit ctsbdc.com.