This legislation aims to amend the Rhode Island General Laws to establish a new chapter specifically for this emergency liquidity program. Businesses either registered within Rhode Island or those operating as sole proprietorships, partnerships, or associations can apply for aid. Eligibility is determined based on documented financial losses, and the bill sets specific criteria to ensure that funds are directed to the most needy entities, thus supporting local economic recovery.
Sunset
The act is designed to sunset either upon the distribution of allocated funds or one year after the state of emergency regarding the coronavirus pandemic ends, which demonstrates a clear accountability and temporal commitment to assist businesses only as long as the emergency persists. Provisions for severability also ensure that if any section of the bill is deemed invalid, the remainder will remain effective, thereby safeguarding its overall intentions.
Summary
House Bill 8031, known as the Rhode Island Hard-Hit Emergency Liquidity Program Act (RI HELP Act), is aimed at providing financial support to businesses significantly impacted by the COVID-19 pandemic. The bill appropriates a total of $20 million with the intent to assist those businesses that have not received substantial funds from other ARPA programs. The program is especially focused on industries that have suffered from a prolonged lack of liquidity due to operational interruptions caused by the pandemic.
Contention
Notably, the RI HELP Act includes provisions for various tiers of aid based on the severity of decline in sales, ensuring that those in distress receive support proportional to their need. The act also stipulates that no business may receive more than $10 million under this program, which may prompt discussions on whether this cap adequately addresses the needs of larger entities facing extreme liquidity challenges, a point that could be a topic of contention among lawmakers and stakeholders in the business community.