POTTSVILLE — Schuylkill County leaders agree that Gov. Tom Wolf’s announcement Monday that Pennsylvania will give $225 million to small businesses will provide some, but not a lot, of help in the recovery from the economic problems caused by the coronavirus pandemic.
And state Sen. David G. Argall, who has been critical of Wolf’s decisions during the pandemic, said the program wouldn’t even be necessary “if the governor had followed the example of so many other states and not closed down so many employers and employees in the first place.”
Commissioners Chairman George F. Halcovage Jr., himself a small-business owner, said any recovery from the economic impacts of coronavirus must center on small businesses.
“I think anything will help,” he said. “We need to get things back to normal as soon as we can.”
Darlene J. Robbins, president of the Northeast PA Manufacturers and Employers Association, welcomes the program.
“I think any grant program for small businesses is wonderful,” she said. “It’s an impetus to get some businesses to open their doors and bring back their employees.”
Who gets the money
Wolf said that of the $225 million, $100 million would be allocated to the Main Street Business Revitalization Programs, $100 million for the Historically Disadvantaged Business Revitalization Program and $25 million for the Loan Payment Deferment and Loss Reserve Program.
“We can really start to focus on recovery,” Wolf said.
The Main Street program is intended to help businesses that sustained losses from Wolf’s March 19 order closing all nonlife-sustaining businesses. They also must have costs incurred or to be incurred from reopening, according to Wolf.
“This will help businesses that have experienced losses,” he said.
The Historically Disadvantaged program sets aside $100 million for businesses that, in addition to meeting the requirements of the Main Street program, are at least 51% owned by socially and economically disadvantaged people who also control management and daily business operations.
“These businesses were often hit the hardest,” Wolf said.
The Loan Payment program will provide $25 million through 17 community development financial institutions whose primary work is helping small businesses.
Robert S. Carl Jr., president and chief executive officer of the Schuylkill Chamber of Commerce, has reservations about that program, saying the closest such institution is in Scranton.
“We have no relationship with them at this time,” he said. “How do Schuylkill County businesses access the money? None of the economic development partners are familiar with them. They’re more urban related. How’s this going to play out for a rural county?”
Carl called it “a press release without a mechanism.”
“Without more information, I’m not going to claim it as a great thing,” he said.
Some won’t recover
Questioned after his announcement, Wolf, who ran his family business before being elected governor in 2014, said he did not know how many businesses will not be able to recover from the pandemic.
“That’s a legitimate concern,” he said. “I know that even a week’s time (closed) creates a lot of concerns.”
Robbins is not certain how long recovery will take.
“I think that’s going to have to be measured,” she said.
She, too, is concerned about the long-term impact.
“There may be some (businesses) that will not be able to come back,” she said.
Argall said Wolf is to blame for those problems, too.
“The governor’s unilateral shutdown order — without the support of the public, the House, the Senate and our local governments — has been detrimental to many of our local employers. Some have been forced to shut down, while others may take years to recover,” he said. “The governor’s secretive waiver process punished small employers while their larger competitors were allowed to stay open. Some employers in the same industry were granted a waiver while others were denied.”
Shop local
Halcovage encouraged people to shop locally to enable small businesses to survive and said that will be easier when the county is moved to the green phase of the recovery.
“I think ... all the metrics show we’re ready to go,” he said.
Contact the writer: pbortner@republicanherald.com; 570-628-6014.