x
Breaking News
More () »

Gov. Northam proposes multi-million dollar plan to help boost small business recovery

The American Rescue Plan proposal would invest $353 million to help small businesses and tourism industries hit hard by the COVID-19 pandemic.

VIRGINIA BEACH, Va. — Small businesses and other industries in Virginia that suffered from the pandemic could be getting more relief soon.

Gov. Ralph Northam announced his American Rescue Plan on July 12. He went to Neptune's Park at the Oceanfront to discuss his plans for the Rebuild VA recovery fund.

As a "Now Hiring" sign soared overhead, Northam made his big announcement. 

"I think they're craving for employees just like this sign up here and that's one of the reasons why we're here today," Northam said. "A total of $353 million - that's a lot of money - to help these small businesses, which by the way are the backbone of our economy, to really help them get back up and running."

Northam said there is a lot to be positive about when it comes to the economy, but the fact remains – the pandemic hit some businesses harder than others.

And Northam acknowledged, businesses in Hampton Roads aren't exempt.

"Well right here at the oceanfront in Virginia Beach, it's a big tourist area… It was hard on VB, it was hard on all of our tourist areas in 2020 because of COVID," he said.

Northam said this funding is additional support as owners work to rebound. Businesses owners can use the money for whatever think will help them stay afloat.

"It will help them with hiring," Northam said. "It will help them with their overhead – all of these things that have just kept them from making their bottom line over the last year."

It's a $353 million investment plan meant to help boost the recovery of small businesses and industries that were heavily impacted by the COVID-19 pandemic. The governor and General Assembly agreed on the fund in March.

“Rebuild VA has been a lifeline of support for countless Virginia businesses,” said State Sen. Janet Howell (D-District 32), chair of the Senate Finance and Appropriations Committee. 

“With so many businesses still in the queue for funding, there is no question that the General Assembly needs to approve the full amount to provide support to these businesses, and to allow new applications to be filed," she said.

For many of those businesses, recovery has been slow. Monday, speakers said if this proposal goes through, it could push them in a better direction. 

RELATED: Applications open for 'Rebuild VA' fund for small businesses impacted by the pandemic

Rebuild VA launched in Aug. 2020, and since then, $120 million in CARES Act funding has been issued to more than 3,000 small businesses and nonprofits.

"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.

“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," he added. "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."

Other leaders, including House of Delegates Speaker Eileen Filler-Corn, Virginia Senate Majority Leader Dick Saslaw and delegates Kelly Convirs-Fowler, Nancy Guy and Alex Askew were all in attendance at the Oceanfront.

Hospitality and travel were also hit hard by the pandemic.

Northam wants $50 million invested in the tourism industry. This money will help the VA Tourism Corporation boost in sports and marketing programs.

“The tourism economy has always been, and will always be, a shining light here in the Commonwealth,” said Del. Luke Torian (D-District 52), chair of the House Appropriations Committee. “From the Blue Ridge Mountains to the Chesapeake Bay, Virginia is the destination that countless people dream to visit. Now that our doors are open and our lights are on, I am confident that Virginia Tourism will use this funding to reboot our tourism economy and bring people in from across the nation and beyond.”

For more information on Gov. Northam's budget plans, visit the Commonwealth of Virginia website.

Before You Leave, Check This Out