Connecticut hospitality businesses will soon see an influx of cash.
Governor Lamont announced on Monday that starting this week the state will distribute $30 million in grants to over 1,700 businesses in the hospitality sector. The funds are intended to help recovery for businesses negatively impacted by COVID-19.
Businesses such as restaurants, hotels, entertainment venues, breweries, wineries and other hospitality enterprises can expect to receive checks ranging from $7,500 to $49,999 from the Connecticut Department of Revenue Services (DRS). The amount a business will receive depends on the amount of loss and the overall level of gross receipts generated by the business.
“So many locally-owned small businesses in the hospitality sector are continuing to recover from the pandemic, and any bit of relief that can be provided will help support them and their workers,” Governor Lamont said. “These funds are being sent directly to employers to accelerate their continued growth and can be used as they best determine to help mitigate any financial losses stemming from the pandemic.”
Instead of having business owners apply for the grants, the Department of Economic and Community Development (DECD) analyzed data provided by the DRS to identify which businesses experienced losses during the pandemic, according to the press release. To receive a grant, businesses must have experienced a decline of at least 15 percent in gross receipts from 2019 to 2021.
Additionally, businesses had to meet other certain criteria developed by the DECD. Funding for the grants, called The Connecticut Hospitality Industry Support Program, was approved as part of the state budget bill that Governor Lamont signed into law earlier this year and is supported by money Connecticut received from the American Rescue Plan Act.
“Connecticut’s hospitality sector suffered devastating economic losses as a result of the pandemic – losses from which many are still recovering today,” DECD Deputy Commissioner Alexandra Daum said. ”The Connecticut Hospitality Industry Support Program is intended to serve as a stabilizing force as our hospitality businesses get back to full operations and customers return to pre-pandemic behaviors.”