Some Good Fiscal News

June 17, 2020

Here's some good news about Connecticut's fiscal picture.

Despite the pervasive narrative that Connecticut is bad for business, we rank high in some key metrics. While the pandemic has hit all states and most business sectors extraordinarily hard, it's important to recognize glimmers of hope when we see them. Here are four:

Help for Small Businesses
I want to be sure to inform you of the changes Congress recently made to the Paycheck Protection Program (PPP), which was created in March in an effort to help small businesses affected by the COVID-19 pandemic.

The Paycheck Protection Flexibility Act, which was signed into law on June 5th, eases some of the restrictions on how businesses use and pay back the loans they receive from the Paycheck Protections Program.

According to a release from David Lehman, the head of the Connecticut Department of Economic and Community Development (DECD), key changes to the PPP include the following:

  • Extends the period to use PPP funds from 8 weeks to 24 weeks
  • Reduces from 75% to 60% the amount a company must spend on payroll
  • Borrowers may now use the 24-week period to fully restore their workforce levels and wages (December 31 instead of June 30)
  • Businesses now have five years to repay the loan, instead of two

If you or someone you know owns a small business and would like more information on these recent changes to the Paycheck Protection Program, click here.

Good Return on Investment
The well respected Pew think tank ranked our state as having one of the top returns on investment in our business community. Through a mixture of grants, low-interest loans, and tax breaks, Connecticut provides hundreds of millions of dollars in incentives to help businesses survive and expand.

Read more about the progress we’ve made by clicking here.

Bond Market Rebounding
Additionally, our bond market is looking up. Moody’s Investors Service, S&P Global Ratings, Fitch Ratings, and Kroll Ratings all recently affirmed the State of Connecticut’s credit ratings and stable outlooks on the State’s General Obligation bonds, following a review during the coronavirus pandemic. Read about it by clicking here and here.

New Tool for Employers and Job-Seekers
In addition, here's a new resource for job-seekers. The State of Connecticut is launching a new tool designed to help both job-seekers and employers. The CT Back to Work Initiative will offer free remote job training for in-demand skills, and it will enable employers to post job openings, and job-seekers to search for job openings that match their skills and training.

Find more info here: https://business.ct.gov/jobs-and-resources