With her “freeze” order set to take in effect Wednesday, Oregon Gov. Kate Brown said Tuesday the state will allocate $55 million in financial assistance to businesses hurt by the coronavirus pandemic.
The money will be distributed by county, based on population, and each county will be responsible for managing applications. Brown’s office said financial assistance will be prioritized for businesses in the hospitality industry, those hurt by the freeze order, small businesses and those from Black, Native American and other historically disadvantaged communities.
“Our iconic main street businesses have sacrificed too much already in this pandemic,” Brown said.
The freeze order accompanies an unprecedented spike in coronavirus infections. Brown is shutting down gyms and live events venues across the state and ending dine-in service at restaurants and bars for at least two weeks – and two additional weeks in Multnomah County, where the recent outbreaks have been especially severe.
Most other businesses can continue operating as they have been, though retailers are limited to 75% of full capacity.
Oregon’s unemployment rate fell a full percentage point in October, to 6.9%, and the pace of layoffs has returned to pre-pandemic levels. But the resurgent coronavirus threatens to upend Oregon’s economic recovery.
The $55 million relief funds come from federal CARES Act funds Congress approved in March. The governor’s office said Tuesday she set some of Oregon’s share aside anticipating additional business support might be needed later in the pandemic.
The money will be far short of what would be needed to carry Oregon’s economy through a difficult winter but there is little prospect of a large new business aid package moving through the divided Congress.
The governor’s office said it expects to distribute the money to counties “within the next several weeks.” That money must be allocated by the end of the year unless Congress grants an extension to the states.
-- Mike Rogoway