MONTPELIER, Vt. (WCAX) – Did taxpayer money earmarked for business relief go to businesses that didn’t need it? A new report from Vermont Auditor Doug Hoffer raises questions about who received COVID cash.
During the pandemic, Congress funneled over $1 billion to Vermont and tens of millions of dollars to help businesses weather the economic storm.
Two programs– Vermont’s Capital Investment Grant Program and Community Recovery and Revitalization Grant Programs– received more than $50 million from state lawmakers.
They were intended to help businesses affected by government COVID restrictions and make long-term investments in their business.
But in a new report, Hoffer looked at 30 businesses and nonprofits and questioned whether all of the businesses actually needed the cash. He says the Agency of Commerce and Community Development did not have internal controls to make sure the money went where it needed to go.
Hoffer says some businesses would have made upgrades and investments even if they didn’t receive the grant, and others received money when they had 20 times that in the bank.
“If the money didn’t need to go to those entities, it could have gone to other purposes, economic development, homelessness, flood resiliency, you name it. The government has a lot of unmet needs but if they’re giving money where it’s not needed, that’s in nobody’s best interest except the owners of those companies,” said Hoffer, D-Vt. Auditor.
Vt. Economic Development Commissioner Joan Goldstein denies money went to those who didn’t need it.
“These were all done with care and diligence to ensure the people applying for these funds were the ones who were deserving,” Goldstein said.
Some 150 businesses, organizations and even municipalities were given money as part of both programs. Half were nonprofits.
This report follows another COVID cash audit showing many finished 2020 in better financial shape than in 2019 and that some businesses were overpaid.