With the state already reeling from floods earlier this week, and Gov. Phil Scott warning Thursday of more unfavorable weather expected, business owners across Vermont are surely already planning their recovery effort and where the money for that effort will come from.
For those in the cannabis industry, receiving aid to get back on their feet is an even more complex undertaking. With recreational cannabis still illegal at the national level, owners of cannabis businesses won’t be seeing any of the federal dollars coming Vermont’s way.
“There’s a robust cannabis industry in Vermont and many of those businesses will need financial assistance,” said Todd Bailey, executive director of the Cannabis Retail Association of Vermont (CRAV). “These are businesses owned by Vermonters, which employ thousands of additional Vermont residents.”
Even non-cannabis businesses will likely be up against significant delays as they wait for federal dollars from President Joe Biden’s emergency declaration, and the assessments of the Federal Emergency Management Agency (FEMA). Between that and the unknown of when – or even if – the state will be able to provide any assistance, they’ll be looking to their neighbors in the Green Mountain State for help.
After being instrumental in helping small businesses receive grants in the wake of Tropical Storm Irene in 2011, Bailey has organized a board for The Vermont Main Street Flood Recovery Fund to provide that more timely relief following this week’s devastating flooding.
“Our previous endeavor in 2011 raised over $600,000, benefiting countless small businesses across Vermont,” stated Bailey in a release from the fund. “Given the scale of the current devastation, we anticipate an even greater need, and we are fully committed to aiding those in distress.”
As is the case statewide, assessment of damages for cannabis businesses is still ongoing and, of course, feared to only grow over the weekend. CRAV published a survey on Wednesday to gather data specific to the industry.
“While we are still learning the exact extent of the damage from the recent flooding, we know cannabis businesses have been hit extremely hard across the state,” Bailey said, only able to give the very general estimate of “dozens of businesses” and a cost of “tens of millions of dollars.”
Because of the complications of federal prohibition, the fund is still trying to determine how it can help the cannabis industry.
“Unlike legacy businesses, our industry won’t likely have access to federal aid, so they need support from the public even more so than others,” Bailey explained. “As a trade association representing the entire industry, we are learning the extent of the need and we are well positioned to help ensure they receive at least some financial assistance during this difficult time.”
The recovery fund is working with Capstone Community Action – a 501(c)(3) non-profit organization out of Barre – to pool donations and make those contributions tax-deductible, as opposed to if the donations came to CRAV, a business trade association that would not have that tax-deductible designation.
CRAV is currently in conversations with Capstone to have its members included among the businesses that will receive a chunk of that aid. Capstone Executive Director Sue Minter is one of the members of the Main Street fund’s board.
“It has been absolutely heart-wrenching to learn about the nature and extent of the flood damage to the small business community,” Minter said in the release. “It’s clear that we face a long road to recovery, but I know Vermonters will continue to help in whatever ways they can to ensure our communities thrive. We have done this before and we will do it again, because we are (still) Vermont Strong.”
Other members of the Vermont Main Street Flood Recovery Fund include State Treasurer Mike Pieciak; Erin Sigrist, president, Vermont Retailers and Grocers Association; Patti Komline, ,manager, Government Relations, Downs Rachlin Martin; Kelly Devine, executive director, Burlington Business Association; and Brian Maggiotto, owner, Inn at Manchester.
Applications for aid will be available at vtrecovery.com next week, the release said.
For further information, the fund has directed the public to Patti Komline at 802-828-7399 or vtrecovery2023@gmail.com.
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