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Gov. Eric Holcomb announces $44M to aid Indiana's economic recovery

Gov. Eric Holcomb
Posted at 4:59 PM, May 29, 2020
and last updated 2020-05-29 16:59:29-04

INDIANAPOLIS — Gov. Eric Holcomb on Friday unveiled nearly $44 million in new initiatives aimed at helping Indiana's economic recovery effort from the coronavirus pandemic.

According to the governor's office, the initiatives are designed to bolster relief efforts and encourage long-term planning and investments to stimulate the state's economy into the future. The state will allocate nearly $44 million to provide support and resources, including approximately $37 million in direct funding through grants and investments to small businesses and manufacturers.

"To restart Indiana's economic engine, it's critical that we provide Hoosier businesses and entrepreneurs with the support they need to grow and get back on track," Holcomb said. "These initiatives will ensure that two critical drivers of our state's economy have access to resources and technological tools that allow them to continue competing and leading in the 21 century economy, while further positioning our state for long-term economic growth."

The state is deploying federal relief funds under the CARES Act in coordination with Indiana's Economic Relief and Recovery Team and is targeting initiatives aimed at achieving long-term economic stabilization, the governor's office said.

Holcomb has approved $30 million in federal CARES Act funding to the Small Business Restart Fund. The fund is aimed at providing money to cover certain expenses related to the global pandemic. Small businesses with fewer than 50 employees and $5 million in annual revenue that have experienced a 40 percent drop in revenue will be eligible to be reimbursed for up to 80 percent of qualified expenses — rent or mortgage payments, utilities, lease payments for real or personal property and safety investments, such as personal protective equipment improvements.

Eligible businesses that demonstrate a loss of at least 40 percent will be awarded up to $2,500 for each month while businesses that demonstrate a revenue loss of at least 80 percent will be awarded up to $5,000 for each month with grants issued up to $10,000 per company. At least $5 million of the fund will be reserved for certified minority- and women-owned businesses.

In addition, the Indiana Small Business Development Center received nearly $3.7 million for the U.S. Small Business Administration to support increased resources for Hoosier entrepreneurs and small businesses. The funding will nearly double the organization's federal funding and enable the Indiana SBDC to increase counseling and training for businesses impacted by COVID-19.

The Indiana Economic Development Corporation board of directors approved $10 million to launch the Economic Activity Stabilization and Enhancement program to support technology and operational advancements in the manufacturing industry.