IN THE LOOP
The latest from the folks across the street from the Capitol

FLASH - Governor convenes unprecedented conference call with CT businesses

Here's a quick summary of a call with Governor Lamont and DECD Commissioner David Lehman and Connecticut business community.

Commissioner Lehman announced results of survey of Connecticut businesses that DECD, AdvanceCT and CBIA conducted and received over 3,000 responses as of today.

The survey is still open:
The survey results are:
  • 80% Connecticut businesses expect sales/revenue declines
  • 50% reported utilizing remote work arrangements
  • 45% have experienced disruption in their supply chain
  • 50% remain open at full capacity
  • 36% are running at reduced capacity
  • 12% are closed
Business impact of COVID-19
Governor Lamont opened by saying that this is far different than the 2008 recession.

Unemployment claims are "far worse" now, with 12,000 unemployment claims filed on Wednesday, alone. In the last recession, claims maxed out at 5,000 a week.

On the plus side, banks are much better capitalized now than they were in 2008.

"We are working hard with banks to make sure credit remains available."

Lamont said he will do everything he can to backstop federal paid sick leave legislation. "If your employees feel sick, tell them to go home."

READY SET GO
Commissioner Lehman said that Connecticut was one of the first states to gain SBA "emergency" status, allowing small businesses to qualify for up to $2 million in disaster relief loans at 3.75%.

Said the state's top business priority is rolling out a small business bridge loan program.

He said the state is in "constant contact with federal agencies," and noted the need for more stimulus initiatives, "particularly for small and mid-sized businesses. Lehman also pointed out actions that the state has taken already:

Taxes:
State extending business tax filing deadline by three months to June 15.

Unemployment:
State has relaxed unemployment benefit requirements. "This is the primary safety net for individuals who have been laid off."
 
Loan extensions:
DECD is providing a three-month state loan relief, and urged private sector lenders to also help small businesses manage their fixed costs.

Regulatory relief:
State "looking to provide regulatory relief in a sensible way" for Connecticut businesses.

Utility shut-offs:
PURA is providing businesses with protection from utility shut-offs until at least May 1.

What people wanted to know - Q and A (Most questions posed by the business audience centered on possible future restrictions on business activity in the state)

Q: Is the state considering closing manufacturing plants or so-called "non-essential" businesses.
A: Lamont: "Not at this point. We are trying to keep as much of the economy going as possible."

Q: There are rumors of a coming total statewide shut down. Is that a possibility?
A: "I really hope not," Lamont replied, saying he is working very closely with other governors in the region on getting the message out for people to stay at home if they can and practice social distancing. "If you can stay home, stay home," he said, stressing the importance of social distancing and limiting large gatherings. "I know this is hardship to small businesses, but it's the most effective thing we're doing."

"I hope it's nothing more draconian than that."
"I appreciate what you're all doing for Connecticut."

The Governor wrapped up the call with an upbeat tone, applauding the growing unity of purpose with both parties in the state legislature and the business community.

"Business and state government haven't always been on the same page in this state. I think we're all on the same page with this crisis-we're all in this together, and I appreciate what you're all doing for Connecticut."

 

From Paddi's Desk
by Paddi LeShane

Keep calm and carry on.

Words of wisdom for sure. As we've reported, the halls of the legislature are silent as staffers are mostly off for the foreseeable future while key legislators are in and out of the Capitol campus consulting with the Governor and agency heads on what the legislature needs to do to help lead CT through these troubles waters. We are hearing that the legislature will come in for an abbreviated session in the near future once the "package" is cemented. The plan is to propose and approve an economic stability package as well as those items that need immediate attention and then more than likely adjourn for the 2020 session. They still have the ability to come back on their own decision or that of the Governor for a special session to deal with unfinished business that they deem important between now and the end of the year.

Nothing is final, but that's what we're hearing in our travels.

The Governor has made a calm and concerted effort to respond to industry concerns and problems, consult with agency heads and attempt to at least put temporary solutions in the works to help everyone make it through the next several months.

His daily 4:30PM news updates are being held at the official Governor's residence as he sets an example of social distancing. The ½ hour long addresses are straight forward, informational and communicate a sense of understanding for what the collective Connecticut resident is feeling. Each day, he's addressing a particular situation, and this week he began to address those concerns on a regional basis so as not to disadvantage CT in taking many of these tough actions. Governor Lamont certainly has not been afraid to acknowledge that maybe his executive order didn't go far enough or went too far and is making adjustments as situations arise. He's been confident, unwavering and compassionate each time he addresses the next critical topic. He's more than passing the test.

I can't be more proud of the team at Sullivan & LeShane and how we're handling the dozens of calls and emails from our clients regarding their specific and sometimes difficult situations they are facing as state government tries to protect the larger good. From what to do about child day care programs, how to maintain operations with a nervous workforce, where to go to ensure they can stay afloat as their revenues are beginning to decrease at a readily growing rate, how to continue on when agencies aren't able to provide guidance to their urgent needs for inspections and/or compliance concerns and even what to do about the upcoming presidential primary set for April 28th.

These are interesting and challenging times for all. All I can say is we're open and here for you as you face new challenges each day. Don't hesitate to call. That's why we're in your corner today, tomorrow and for the future.

Hang tough! After all, we're Nutmeggers first and foremost!
 

CT Agency Corner
What Small Businesses and Non-Profits Needs to Know About the SBA Loans
by Michael Johnson

This week, the federal government announced that the Small Business Administration (SBA) will be making available loans of up to $2M for businesses and non-profits as part of disaster relief program being rolled out. Connecticut, one of few states that's been approved to access these funds, has been encouraging entities based in state to take advantage of this, but how does the program work? Here's a FAQ on if your business or non-profit qualify and what's on the table:

Who can apply?
* Businesses directly affected by the disaster
* Businesses that offer services directly related to the businesses in the declaration
* Other businesses indirectly related the industry that are likely to be harmed by losses in their community
* Most private non-profit organizations

What is an eligible "Disaster-Affected" business?
* The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

Who's considered ineligible?
* Agricultural Enterprises (they are eligible for EIDL assistance but not this program)
* Religious Organizations
* Charitable Organizations
* Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
* Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above

How much can I borrow and at what interest rate?
* Eligible entities may qualify for loans up to $2 million.
* The interest rates for this disaster are 3.75 percent for small businesses and
2.75 percent for nonprofit organizations with terms up to 30 years.
* Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.

How can I use the loan funds?
* These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.

What are the collateral requirements?
* SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available
* Economic Injury Disaster Loans over $25,000 require collateral. 20% of the loan as either a collateralized payment or personal guarantee is required in addition to a credit check.
* SBA takes real estate as collateral when it is available.

Is there an application fee and prepayment penalty?
* No to both.

What's the estimated time-frame for processing of the applications?
* There will certainly be a large amount of traffic coming into local SBA offices with applications but SBA is estimating approximately 4-5 weeks for the approval of an application.

Where can I apply?
* All applications are being accepted online; Call with questions: 1-800-659-2955

Is there a list of SBA Partners where I can also utilize help for applications?
 

Did You Know?
Fun Facts and Good News!

So with things as crazy as they are out there in the world today and every where you turn it seems like bad news, we thought we could brighten up your spirits and put a smile on your face with some happy, fun facts!
  • Sea otters hold hands when they sleep to keep from drifting apart.
  • The voices of Mickey Mouse and Minnie Mouse got married in real life.
  • Dolphins call to each other with distinct sounds i.e. names. They also remember their friends.
  • When playing with female puppies, male puppies will often let them win, even if they have a physical advantage.
  • Thanks to squirrels forgetting where they stash their nuts for winter, thousands of trees sprout from forgotten acorns.
  • Canada consumes more doughnuts and has the highest number of doughnut shops per capita of any country in the world.
  • Taking a look at old photos can help improve your mood (even more than eating chocolate or drinking wine.) 
  • Actor Charlie Chaplin once entered into a Charlie Chaplin lookalike contest. He actually lost to another competitor.
  • Three presidents, all Founding Fathers-John Adams, Thomas Jefferson, and James Monroe-died on July 4. Presidents Adams and Jefferson also died the same year, 1826; President Monroe died in 1831.
  • Neurologically speaking, seeing somebody else smile actually makes you happier.

In This Issue:

Municipal
Roundup
by Ryan Bingham

Things are changing hour by hour, day by day for municipalities in our state these days. Many of you are working from home and have worked with us on the variety of new issues and solutions that have sprung up as a result of the COVID-19 public health crisis.
 
For towns and cities in CT, Gov. Ned Lamont waived the state's open meeting requirements this week, permitting municipalities to exclude the public from attending certain meetings in person. It's not always that simple, as legal questions for cities and towns and the largest remains unresolved. Can they adopt new budgets this spring without input or, in some cases, votes by taxpayers?  These are a few but certainly not the only questions that are being asked on the local level.
 
"We continue to take proactive, aggressive action to protect the residents of our state - and particularly the communities that are most vulnerable," Lamont said. "I want to assure the people of Connecticut that the acts we are taking are being done with their safety in mind. I think everyone can agree that using the executive authorities that we were granted for times such as this is the right thing to do."
 
Lamont's order would allow municipal boards and commissions to hold meetings remotely provided they meet all of the following conditions:
  • Make arrangements for the public to watch or listen in real time by telephone, video or other technology.
  • Record or transcribe the meeting and then make that record available on the municipality's website within seven days of the event.
  • Post an agenda for the meeting on the municipal website and include information on how the meeting can be accessed remotely.
  • Post all supporting documents and materials relevant to the agenda to the municipality's website. They also must be filed with the board or commission holding the remote meeting at least 24 hours beforehand.
  • Require all officials and others taking part in the meeting to clearly state their name and title before each time that they speak.
There are several other changes that are happening and will happen in the coming days and weeks, and we'll continue to be on top of it. Please let us know if you need anything in this time of need, we're here to help!

Municipal
Roundup
by Ryan Bingham

Things are changing hour by hour, day by day for municipalities in our state these days. Many of you are working from home and have worked with us on the variety of new issues and solutions that have sprung up as a result of the COVID-19 public health crisis.
 
For towns and cities in CT, Gov. Ned Lamont waived the state's open meeting requirements this week, permitting municipalities to exclude the public from attending certain meetings in person. It's not always that simple, as legal questions for cities and towns and the largest remains unresolved. Can they adopt new budgets this spring without input or, in some cases, votes by taxpayers?  These are a few but certainly not the only questions that are being asked on the local level.
 
"We continue to take proactive, aggressive action to protect the residents of our state - and particularly the communities that are most vulnerable," Lamont said. "I want to assure the people of Connecticut that the acts we are taking are being done with their safety in mind. I think everyone can agree that using the executive authorities that we were granted for times such as this is the right thing to do."
 
Lamont's order would allow municipal boards and commissions to hold meetings remotely provided they meet all of the following conditions:
  • Make arrangements for the public to watch or listen in real time by telephone, video or other technology.
  • Record or transcribe the meeting and then make that record available on the municipality's website within seven days of the event.
  • Post an agenda for the meeting on the municipal website and include information on how the meeting can be accessed remotely.
  • Post all supporting documents and materials relevant to the agenda to the municipality's website. They also must be filed with the board or commission holding the remote meeting at least 24 hours beforehand.
  • Require all officials and others taking part in the meeting to clearly state their name and title before each time that they speak.
There are several other changes that are happening and will happen in the coming days and weeks, and we'll continue to be on top of it. Please let us know if you need anything in this time of need, we're here to help!

Executive Order Update
by Chelsea Neelon

Over the past week, the nation has seen the spread of COVID-19 across all 50 states, and the federal government has called for a national public health emergency. Governor Lamont called for a state of emergency on March 14th, and has continued to use his power to create executive orders to ensure the overall public health and safety of CT's residents.

Unprecedented times call for unprecedented measures, and we will provide you a deeper dive into Governor Lamont's executive orders beginning on March 12, 2020.

Executive Order No. 7
* Takes several emergency actions in response to the COVID-19 outbreak and the governor's civil preparedness and public health declarations, including limiting the size of gatherings to 250 people, waiving the 180-day school year requirement, clarifying nursing home visitation restrictions, authorizing DMV to extend renewal deadlines, and relaxing attendance rules for police academy trainees.

Executive Order No. 7A
* Grants the commissioner of the Department of Public Health the authority to restrict visitation at nursing homes and similar facilities in response to the civic preparedness and public health emergencies declared due to the COVID-19 outbreak.

Executive Order No. 7B
* Takes several emergency actions in response to the COVID-19 outbreak and the governor's civil preparedness and public health declarations.

Executive Order No. 7C
* Takes several emergency actions in response to the COVID-19 outbreak and the governor's civil preparedness and public health declarations, including the cancellation of classes at public schools statewide and other items.

Executive Order No. 7D
* Takes several emergency actions in response to the COVID-19 outbreak and the governor's civil preparedness and public health declarations specific to crowd reduction and social distancing.

Executive Order No. 7E
* Takes several emergency actions in response to the COVID-19 outbreak and the governor's civil preparedness and public health declarations specific to further suspension or modification of statutes.