SC Gov. McMaster will ask lawmakers to spend $123M for small businesses hurt by COVID
Gov. Henry McMaster will ask South Carolina lawmakers this year to spend more than $123 million on the state’s small businesses that fell victim to the COVID-19 pandemic and another $30 million to expand access to broadband internet — a bipartisan initiative from Washington down to the Palmetto State.
An even bigger request, the governor also will ask lawmakers to spend $500 million to store away in a reserve fund in case of future economic impacts resulting from the coronavirus, which has killed thousands in South Carolina.
McMaster will unveil his executive budget Friday, days before the Legislature’s return to Columbia on Tuesday.
The governor is expected to address the General Assembly Wednesday, laying out his agenda and his budget recommendations.
South Carolina’s small businesses have been especially hurt by COVID-19 after the state’s first outbreak in March forced owners to shut their doors to customers. Though businesses have slowly started to reopen, several have struggled under the weight of the pandemic — especially restaurants and other hospitality businesses — and many have shut their doors for good.
The federal government tried to mitigate some of that loss, sending millions to businesses through its Paycheck Protection Program.
And the Legislature spent $65 million last year to help small businesses, particularly those minority-owned, and nonprofits. After weeks of advertisement and a statewide tour by McMaster, the state Department of Administration received more than 11,000 applicants and, to date, have helped more than 2,200 businesses and nearly 700 nonprofits.
But the governor wants budget writers to spend much more this year, according to a proposal shared first with The State ahead of his budget roll out.
The governor’s one-time $123 million ask of lawmakers would go straight to the state’s Department of Commerce to set up a small business relief grant program strictly for small businesses, not nonprofits. To qualify for the program, businesses would have to be located in South Carolina, employ 25 or fewer employees, be operating since Sept. 13, 2019, and be able to show a direct impact because of COVID-19.
“The governor thinks they’re the lifeblood of the economy,” said McMaster spokesman Brian Symmes. “By no fault of their own, small businesses around the country, including right here in South Carolina, are in peril after dedicating sometimes lifetimes worth of work. In some cases, generations of families who have put their blood, sweat and tears into restaurants (and) businesses.”
McMaster’s budget proposal also will lay out his request that lawmakers spend $30 million to increase broadband statewide.
Broadband internet has been brought back to the forefront over the past year after, in particular, schools closed at the start of the outbreak, forcing thousands of students to learn online. In many cases, students and teachers lacked sufficient broadband access to sign on.
Roughly 650,000 South Carolinians and 180,000 households do not have high-speed internet access.
The Governor’s Office said the $30 million expense would be the state’s match to millions put up by private companies. Last year, ORS used federal COVID-19 relief to help pay for $52.8 million worth of expansion projects through a 50/50 cost share program.
The Federal Communications Commission also approved about $121 million worth of projects in rural areas to carry out over 10 years.
Though $30 million will not be enough to install broadband everywhere in South Carolina, the Governor’s Office said Thursday there will be an emphasis to continue funding the program forward.
One estimate from a broadband consultant said it would cost $800 million to expand broadband to the rest of the state.
Workforce spending requests
▪ $123 million, one time to create a small business relief program
▪ $30 million, one time money for broadband expansion
▪ $20 million, in lottery dollars for workforce scholarships and grants
▪ $17 million, in lottery dollars for the state’s technical college scholarship program
▪ $12.5 million, in lottery dollars for job skill training
▪ $10 million, in lottery dollars for the ReadySC workforce training program
▪ $4.1 million, one time money for the state’s rural infrastructure fund
▪ $4 million, one time money for the “Locate SC” economic development recruitment program
▪ $3.7 million, one time money to help close on economic development projects
This story was originally published January 7, 2021 at 4:25 PM with the headline "SC Gov. McMaster will ask lawmakers to spend $123M for small businesses hurt by COVID."
