King: 'Help is definitely on the way' for small businesses in Maine

FIle photo U.S. Sen. Angus King spoke with Mainebiz by phone Wednesday afternoon after the U.S. Senate vote on a coronavirus relief plan for families and small businesses.

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By Renee Cordes

After the U.S. Senate on Wednesday passed the second major coronavirus relief bill, U.S. Sen. Angus King, I-Maine, expressed confidence in the state's ability to weather the crisis, but also shared some concerns.

"One message is that help is definitely on the way," he told Mainebiz by phone from his home in Washington after the vote. He said social distancing on the Senate floor added about 15 minutes to the voting.

H.R. 6201, also known as the Families First Coronavirus Act, passed by a vote of 90-8. It expands Medicaid and unemployment benefits, as well as job-protected leave for employees at companies with fewer than 500 employees.

The bills now heads to President Donald Trump as lawmakers work on an even bigger economic stimulus package.

Under the Families First Coronavirus Act, employees at small and mid-sized firms who test positive for the virus, or are attending a family member who does, would get two weeks of paid sick leave. Employers would get a tax credit in return.

"It's a government reimbursement," King explained.

He said the next package is being negotiated, with everybody "throwing ideas in" that involve everything from a check every month or every quarter to every adult American — amounts are also being discussed — as well as measures to bolster unemployment insurance.

"The major package that is being discussed I'm speculating will be well over $1 trillion of stimulus in one way or another, mostly to families and workers," he said.

'Substantial' rainy day fund but vulnerable sectors

Asked how Maine compares to other states in terms of weathering economic shock, King said that while it's hard to say, Maine has a "substantial" rainy day fund that will help.

Formally known as the Budget Stabilization Fund, the current balance is $257 million after growing by around $50 million since Gov. Janet Mills took office, a spokeswoman told Mainebiz by email.

On the minus side, King said: "The extent to which we're dependent upon tourism could make us somewhat more vulnerable than some other states, although everybody is going to feel this ... The biggest problem is that we don't know how long it's going to last."

As for Maine businesses in other sectors, King said he had been in touch with a building materials business, and underscored the importance of helping nonprofits as well as hospitality businesses such as restaurants and hotels.

"We don't know to what extent this is going to extend into the summer," he said. "Tourism and hospitality are certainly ones that I'm paying attention to."

King said lawmakers were also working on plans to get internet access to children in rural areas who are out of school, while welcoming commitments from eight major internet service providers to better support remote access.

The pledges, from the heads of companies, including Verizon and Comcast, were in response to pressure from King and other lawmakers.

"I think we've had good success" with the large internet service providers, King told Mainebiz. "They're waiving data caps and providing important assistance. That's a high priority for me."

He also had a general take on how long the crisis will last.

"Here's my principal thought: Our ability to weather this will be the opposite of what we think. If we think it's going to not be a big deal and act accordingly, it's going to be a big deal. If we think it's going to be a big deal, and act accordingly," in terms of social distancing and other measures, "it will be less than we expect."