Connecticut Offers $5 Million in Grants to Help Small Businesses With Flood Recovery

Connecticut Gov. Ned Lamont announced that the state is launching a $5 million micro-grant program to assist small businesses in the western portion of the state rebuild and recover from the record rainfall and flooding the state received last week.

Under this program, state grants of up to $25,000 will be available for small businesses and nonprofit organizations in Fairfield County, Litchfield County, and New Haven County that have fewer than 100 employees and experienced damage from the floods.

Grants can be used to cover various recovery expenses including those associated with cleanup efforts, replenishing lost inventory, and replacing equipment.

“This kind of unforeseen natural disaster can cripple small businesses that may not have the financial resources to quickly recover, rebuild and reopen,” said Department of Economic and Community Development (DECD) Commissioner Daniel O’Keefe. “This micro-grant program is an important first step on the road to recovery, providing critical gap funding to help our small businesses stabilize operations as best they can while they pursue more long-term support from the federal government or other sources.”

The application process is expected to launch September 3. Applicants will be required to provide detailed descriptions of how their businesses were impacted and include photos, receipts, invoices, and estimates where applicable.

Tri-State Region Shocked as Severe Floods Take 2 Lives, Leave Trail of Destruction

This state-funded grant program is separate from any potential federal funding that businesses or homeowners may be eligible to receive if the state is awarded a major disaster declaration from the Federal Emergency Management Agency (FEMA) or the Small Business Administration. The Lamont administration said it is working with towns, businesses, and homeowners on damage assessments to calculate whether the cost thresholds have been met that would enable the state to receive federal funding for public and uninsured private property. The process of conducting these assessments and then applying for this type of declaration typically takes several weeks.

Flood-Stricken Connecticut Seeks Emergency Assistance from Federal Agencies

Last week, President Joe Biden authorized a federal emergency declaration for Fairfield County, Litchfield County, and New Haven County due to the storm. That declaration enables the state to coordinate with FEMA on the deployment of certain federal resources, such as personnel and equipment, that augment emergency actions the state and its municipalities are taking to protect lives and property.

According to the state, up to almost 16 inches of rain fell in 6-8 hours in some locations. The peak rainfall exceeded 3 inches of water per hour, and 7 inches in three hours in a band from Monroe to Oxford. There was also major river flooding of the Housatonic, Little River, and Naugatuck rivers.

The flooding took the lives of two women in Oxford. About 50 campers had to be rescued from Kettletown State Park campground and more than 30 evacuations occurred at Jackson Cove near Zoar Lake.

Lamont has said the state has received “huge requests” from private citizens due to their homes flooding, businesses being destroyed, and bridges and local roads being washed away.

In Litchfield County at least four towns declared local emergencies due to severe flooding and evacuations. A landslide in Danbury severed a gas main forcing 10 units of a condominium project to be evacuated. Another senior housing apartment complex was severely flooded and compromised requiring 40- 50 people being evacuated and requiring housing. In Oxford, local and state rescue teams helped evacuate residents along the Housatonic River.

Monroe experienced structural damage to Route 34 with bridge damage located between Route 111 and the Stevenson Dam. Route 34 was so severely compromised that the Lamont said state engineers cannot yet estimate when it will be open again. Routes 53 and 57 also have of structural integrity issues on the roads and four bridges.

Topics Commercial Lines Flood Business Insurance Connecticut