HARTFORD, CT (WFSB) – Connecticut is running out of money for unemployment claims and will soon have to borrow millions to replenish the trust fun.
It will be Connecticut businesses who will have to pay the money back.
Coronavirus has brought on a recession and businesses are struggling.
“We have a lot of people on unemployment and we need to get back into fully opening the state,” said Chris DiPentima, CBIA new president.
Chris DiPentima will soon take over the CBIA, the state’s largest business organization, which helps create jobs and economic growth.
“I’ve heard congratulations and condolences, but I see this as a great opportunity,” said DiPentima.
Dipentima has been the president of Leggett and Platt Aerospace, which includes Pegasus Manufacturing in Middletown. He becomes CBIA’s new president in August.
Manufacturing may be a strong survivor. They’ve remained open during the pandemic.
Many small businesses shut down because of COVID-19 may not survive. More than 2,000 companies are getting state loans, totaling close to $40 million.
“There is no easy way out. This is an economic recession caused by a health pandemic,” said Fred McKinney, Quinnipiac University economist.
It will not be easy for small businesses to regain their strength and those who have lost their jobs won’t have the money to support businesses.
About 600,000 people in Connecticut are jobless. The state is now borrowing to replenish unemployment benefits. The state doesn’t pay into that, so every dollar is paid back by Connecticut businesses and if there are tax increased, CBIA will fight them.
“Historically, we have had massive tax increases and we had negative migration of population, GE left, and we need to make sure that doesn’t happen,” DiPentima said.
Nationally, 20 percent of businesses have gone under.
Economists and the CBIA feel state need more federal funding to get through this recession.