Idaho’s been slow with aid to self-employed. Little promises faster cash to businesses
Gov. Brad Little acknowledged Friday that Idaho has been slow in distributing federal coronavirus-aid money to self-employed workers.
“I confess that we’re behind the curve compared to some states on getting that money out,” Little said at a Boise Metro Chamber livestream on Facebook.
But he promised to be faster in distributing $10,000 payments to as many as 30,000 small businesses that aren’t receiving federal aid, once the state payment program opens Monday to take applications from the first of two eligible groups of recipients.
“We’re hoping we can get this money out very rapidly,” Little said. “We’re trying to fill in the gaps.”
Applications for Idaho Rebound Cash Grants open at noon Monday, May 11 for companies with one to 19 employees, and will close the following Friday.
Little said he aims to have the grants distributed by the following week.
Companies with one to 50 employees may apply on Monday, May 18 through the following Friday.
Fast money may come as good news to business owners who did not receive aid from federal emergency programs like the $349 billion Paycheck Protection Program — part of the $2 trillion coronavirus relief bill Congress passed in March. That first round of that program quickly ran out of funding within 10 days of opening, and the second round of loan applications saw delays after the onslaught of demand crashed the Small Business Administration’s computer system the first day they were offered.
Congress passed an additional $484 billion COVID-19 relief package April 23, with more than $320 billion for the paycheck program. Between Monday, April 27 and Friday, May 1, Idaho businesses received 12,411 loans worth $719.8 million — an average of $58,000 per loan. The loans will be forgiven if the borrowers meet terms that include spending at least 75% of the money on payroll.
Idaho’s “Rebound” grants are meant to cover Idaho businesses and other organizations that did not qualify for the federal programs, including nonprofits and 501(c)(6) organizations like chambers of commerce, as well as veterans organizations and tribal businesses.
Self-employed people, including contract workers, Uber drivers and other gig-economy workers, will still need to apply for special unemployment payments, rather than Rebound grants. The state Department of Labor has not yet started making those payments, because it is still building a system for monitoring and distributing them.
Idaho’s grants can be used to cover payroll, rent and other expenses related to the coronavirus pandemic.
“It’s for COVID expenses, but it’s pretty broad,” the governor said.
The $300 million program comes from the $1.2 billion awarded to Idaho by the federal government to pay for COVID-19 relief efforts.
Eligible entities must also have an active Idaho State Tax Commission withholding account established before January 1, 2020.
The governor’s coronavirus financial advisory committee will screen all grant applications. Those who receive funds will be listed on transparent.idaho.gov.
“We want to move the needle on recovery,” Little said.
More information on applying for the small business grants can be found at rebound.idaho.gov.
