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VETERANS ★DAY★2020 Honoring all who served presented by:

Providence Business News is grateful for the support of these companies in honoring our veterans, and salutes our nation’s veterans and the families that support them.

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CharterCARE Health Partners, Roger Williams Medical Center and Fatima Hospital, is proud to recognize the selfless contributions of our nation’s veterans. Their service should never be forgotten.

Cox Business is proud to honor all veterans in our community. We thank you for your bravery, service and sacrifice so that we can live safely!

Dimeo Construction Company thanks and supports the brave veterans in our Rhode Island community whose selflessness has always kept us safe over the years. Your service for our state and our country will never be forgotten.

On behalf of all of us at Navigant Credit Union, we thank of all of our veterans for their selfless service to our nation. Your bravery and sacrifices have kept us safe, and made us proud.

Neighborhood supports and honors the brave men and women of our Armed Forces, and their families.

Thank you for sacrificing so much to keep our country safe and strong!

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HEALTH CARE

PBN SUMMIT RECAP Continued telehealth coverage a must | 18 Ready to return to workplace?

Not so fast | 20

BUSINESS WOMEN Mocarski built company to weather everything | 10

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CORONAVIRUS CRISIS

Tax questions over PPP loans remain unresolved

DELAYED RELIEF

BY MARY MACDONALD | MacDonald@PBN.com

THE PAYOUT: The state has allocated tens of millions of dollars in CARES Act funding, including to build field hospitals such as the one pictured at the R.I. Convention Center. But now a Dec. 30 deadline to spend the rest of stimulus funding is fast approaching.

COURTESY LIFESPAN CORP.

Slow-spending R.I. has two months to disperse $900M in CARES Act money

ACCOUNTANTS WHO HELPED shepherd businesses through the process of obtaining federal Paycheck Protection Program loans this year are now cautioning them to not assume it will go untaxed.

Among the many questions so far this tax year is whether any portion of the PPP proceeds are going to be subject to taxes, according to Rhode Island ­accountants.

Other issues are more straightforward.

FOCUS: ACCOUNTING/ BUSINESS VALUATION & SUCCESSION

Millions of Americans, along

BY ALEXA GAGOSZ | Gagosz@PBN.com

RHODE

Island officials rejoiced when they learned in March that the state would get a $1.25 billion slice of the federal coronavirus relief package. Months later, a new problem has emerged: how to spend it quickly yet wisely before the Dec. 30 deadline.

State records show that as of Oct. 1, Rhode Island had spent only about one-quarter – or $299.6 million – of its Coronavirus Aid, Relief, and Economic Security Act funds since it was allocated in the spring.

Democratic Gov. Gina M. Raimondo’s administration has been holding on to most of the money in hopes that it would get more flexibility in how the state could spend it, possibly using some of the

SEE TAXES

funds to close a gaping state budget deficit. That flexibility hasn’t come, though some national organizations and federal lawmakers are pushing for an extension of the deadline.

Meanwhile, small-business advocates, including Democratic Lt. Gov. Daniel J. McKee, and state Republicans have seized upon how the administration has handled relief efforts. GOP leaders note all other New England states have dispersed a far higher percentage of their CARES Act appropriations as the deadline approaches, including Vermont, which has used or earmarked 100% of its $1.25 billion share.

SEE FUNDS

PAGE 14

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CONTENTS

PBN

COVER STORY DELAYED RELIEF

Slow-spending R.I. has two months to disperse $900M in CARES Act money..............................................3

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Trending: Most-read stories on PBN.com, October 2020...............5 5Q: Dwayne Keys............................................................................... 6 Dining Out: What’s in a name? A lot.................................................7 Spotlight: NeQter Labs...................................................................... 8 Something New: Madrid European Bakery and Patisserie............. 8 Hot Topic: R.I. explores play for esports.......................................... 9 Business Women: Mocarski built company to weather everything..............................10 News Briefs........................................................................................11 What’s Happening............................................................................. 12

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People in the News.......................................................................... 32 Mackay’s Moral................................................................................ 33 To Savor: Jessica Norris Ganatiero................................................ 34 Guest Column: Jay Maddock.......................................................... 34 Editorials and Opinion..................................................................... 36 One Last Thing: Kathie Mahoney................................................... 38

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PBN HEALTH CARE SUMMIT RECAP

EDITORIAL

Panelists argue continued telehealth coverage a must

Editor@PBN.com Fax: 401-274-0670

Telehealth capabilities amid COVID-19 have improved attendance and lowered no-show rates for those seeking mental health care.............................................. 18

Editor: Michael Mello, 680-4820

SOMETHING NEW | 8

Are you ready to return to workplace? Not so fast “COVID fatigue” has led to a surge in new cases but businesses must be patient and remain vigilant against the virus................. 20

Managing Editor: William Hamilton, 680-4826 Web Editor: Chris Bergenheim, 680-4886 Copy Editor: Matt Bower, 680-4824

FOCUS: ACCOUNTING/BUSINESS VALUATION & SUCCESSION

Special Projects Editor: James Bessette, 680-4838

Tax questions over PPP loans remain unresolved Accountants who helped guide businesses through the process of obtaining federal Paycheck Protection Program loans are now cautioning them that the money may be taxed................................3

(EDUCATION, NONPROFITS)

Crisis spurs businesses to reevaluate their worth

(HEALTH CARE, HOSPITALITY/TOURISM, WORKFORCE)

Business valuation analysts have had to get creative with the tools and measurements they normally use, while servicing an influx of clients amid COVID-19................................. 26

(ENERGY/ENVIRONMENT, ENTREPRENEURSHIP, FINANCIAL SERVICES)

Staff Writers: Alexa Gagosz, 680-4828 Nancy Lavin, 680-4822

FOCUS: ACCOUNTING/BUSINESS VALUATION & SUCCESSION | 26

List Chief Financial Officers................................................................... 30

Mary MacDonald, 680-4830 (GOVERNMENT, MANUFACTURING, REAL ESTATE/DEVELOPMENT)

Researcher: Cassius Shuman, 680-4884

PRODUCTION THIS WEEK’S FEATURED COMPANIES AIDS Project Rhode Island

32

Hasbro Inc.

9

Rhode Island Public Health Institute

Aura Cannabis LLC

11

Johnson & Wales University

9

Barrett Valuation Services Inc.

26

Kahn, Litwin, Renza & Co. Ltd.

Rhode Island Society of Certified Public Accountants

Blue Cross & Blue Shield of Rhode Island Blue Plate Diner

19, 20 7

26

Lifespan Corp.

14, 18

Madrid European Bakery and Patisserie

8

Brown University

11

Marcovich, Mansour & Capobianco LLC

29

Bryant University

10

Mullen Scorpio Cerilli

29

Neighborhood Health Plan of Rhode Island

20

Care New England Health System

14, 18

Carpionato Group LLC

16

NeQter Labs

8

Citizens Bank

16

New England Institute of Technology

9

Cleverhood LLC

10

Piccerelli, Gilstein & Co. LLP

Coastal Medical Inc.

18

Pier Ice Plant Inc.

Crossroads Rhode Island

15

Providence College

David J. Shepherd CPA LLC

27

Providence Equity Partners LLC

Dunkin’

29

Rhode Island Medical Imaging Inc.

FGX International Inc.

9

26 25 9, 14 16 20, 22

Rhode Island Public Expenditure Council

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15

R.I. Commerce Corp.

11 26 9, 10, 14

R.I. Convention Center

14

R.I. Department of Administration

14

R.I. Department of Health

7, 11, 14

R.I. Department of Human Services R.I. Department of Labor and Training R.I. Housing and Mortgage Finance Corp.

Ritual Motion SquadLocker Inc. The Washington Trust Co. Trailblaze Marketing Tufts Health Plan United Way of Rhode Island

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FOR STARTERS

TRENDING

Most-read stories on PBN.com, Oct. 2020

1

Metacomet Golf Club sold for $7.6M POSTED ONLINE: OCT. 7 Metacomet Golf Club sold for $7.6 million on Oct. 2 to a corporation associated with developer Marshall Properties. The deed, filed with the East Providence City Clerk, documents the sale price paid by Metacomet Property LLC, a Pawtucket corporation with an agent identified as Lianne Marshall. rb.gy/wt0rd4

3

5

Raimondo set to announce increased COVID-19 restrictions as cases spike POSTED ONLINE: OCT. 14 Gov. Gina M. Raimondo said on Oct. 14 that new restrictions will be announced due to a spike in new cases of COVID-19 and hospitalizations due to the virus. “This is a wakeup call for all of us, and I am worried about the holidays,” said the governor. rb.gy/7takdm

Raimondo lowers gathering limit, bans spectators of school sports for now POSTED ONLINE: OCT. 30 Due to a new surge of coronavirus cases in Rhode Island, Gov. Gina M. Raimondo announced on Oct. 30 there would be a reduction of social gatherings from 15 people to 10 people.

COURTESY CAPITOL TV rb.gy/tcsts0

COURTESY R.I. DEPARTMENT OF HEALTH

PBN FILE PHOTO

2

Raimondo orders R.I. break rooms closed to limit COVID-19 spread POSTED ONLINE: OCT. 15 On Oct. 15 Gov. Gina M. Raimondo announced that break rooms in Rhode Island have been ordered to close in businesses for the next 90 days to prevent the further spread of COVID-19. rb.gy/ozwor4 PBN FILE PHOTO/DAVE HANSEN

BUSINESS

EXCELLENCE AWARDS

20

4

Raimondo warns of rolling back to Phase II; will announce new restrictions Oct. 30 POSTED ONLINE: OCT. 28 Gov. Gina M. Raimondo said on Oct. 28 that Rhode Island is heading in the wrong direction for every metric in new coronavirus case trends. Based on the state’s current projections, Raimondo said it’s possible that Rhode Island could pass the surge capacity in hospitals in the next four to five weeks.

PBN FILE PHOTO/ELIZABETH GRAHAM rb.gy/nxeqdl

6 7 8 9 10

Pawtucket moves to enable use of eminent domain for Apex site POSTED ONLINE: OCT. 16 rb.gy/l2bp4l

Companies honored for HR policies, employee satisfaction in PBN’s 2020 Best Places to Work Awards POSTED ONLINE: OCT. 1 rb.gy/6dolyq

Many offices are sparsely filled, and it’s having negative effects PUBLISHED IN PRINT: OCT. 9 rb.gy/tjeym1 PBN announces 2020 Best Places to Work honorees POSTED ONLINE: JULY 31 rb.gy/bfrexu

Eight local contractors charged due to shoddy, unfinished work POSTED ONLINE: OCT. 26 rb.gy/scyxdm

Celebrate the best of the best CORPORATE CITIZENSHIP KIM KECK Blue Cross & Blue Shield of RI

BUSINESS LEADERSHIP DR. JAMES FANALE Care New England

CELEBRATING

YEARS

Virtual Awards Event SAVE THE DATE: November 18th | 4pm

ENTREPRENEURSHIP SquadLocker

EDUCATION & LEARNING William M. Davies, Jr. Career & Technical High School

COMMUNITY INVOLVEMENT SWAP, Inc.

WORKFORCE DEVELOPMENT Blount Fine Foods

WOMAN / MINORITY OWNED BUSINESS What Cheer Flower Farm

FAMILY-OWNED BUSINESS M.R.T. Jewelers

SOCIAL-SERVICE Rhode Island Free Clinic

NON-PROFIT (SMALL) The Wilbury Theater Group

NON-PROFIT (LARGE) Brown Medicine

ENTERPRISE COMPANY Gilbane Inc.

LARGE COMPANY BankNewport

MID-SIZE COMPANY United Way of Rhode Isalnd

SMALL COMPANY Envision Technology Advisors

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FOR STARTERS

5Q: Dwayne Keys President, South Providence Neighborhood Association

BY MARY MACDONALD | MacDonald@PBN.com

1

South Providence residents have organized to oppose several projects recently that they thought damaged the neighborhood. Is the community better organized now?

Our community in the south side of Providence has always been better organized. Through the support of the South Providence Neighborhood Association, our community is transitioning its organizing methods from being reactive in such development experiences to being proactive with envisioning what residents want for our neighborhood along with communicating that vision on a consistent basis. SPNA is working toward launching participatory budgeting, a concept that provides for residents to vote on projects in their area to receive city funding, in our neighborhood through a potential partnership with the city and other interested parties.

2

What development is ongoing in the area that you think works well for the community?

Development projects that fulfill robust community engagement with the neighbors and resolve potential negative impacts to the neighborhood before being implemented are the ones that work very well.

3 PBN PHOTO/RUPERT WHITELEY

Is gentrification emerging as a problem?

Gentrification, in its purest definition, means improvement. Our community loves and welcomes the improvement. It’s the displacement, occurring as a result of such improvement, that our residents have been

experiencing that is the problem.

The displacement in the south side of Providence is not an emerging problem. We’ve experienced it over several decades in various forms, with housing affordability being the current form.

4

Do you see evidence of more cross-neighborhood organizing in Providence?

There are multiple examples of crossneighborhood organizing involving SPNA since our inception in December 2015. That … organizing with SPNA has increased to include participating in coalitions that address issues at both the citywide and state levels … as well as working with other neighborhood groups on specific topics.

5

How has the pandemic affected the neighborhood?

Like many other historically excluded groups throughout the nation and the world, our neighbors had long ago built up their strength and resiliency to endure and overcome such challenges. As with the experiences of development and displacement in our neighborhood, our neighbors are adapting as best as we can to the safety protocols, some of which … have taken more time to adjust to them. n

It’s the displacement … our residents have been experiencing that is the problem.

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FOR STARTERS DINING OUT | BRUCE NEWBURY

What’s in a name? A lot WHO SAYS THERE IS NO entertainment at restaurants in this time of COVID-19? The following encounter would have been quite entertaining if it were not so concerning.

Restaurateur Ted Karousos was going through the combination welcome and state-mandated screening with a customer who had come in for lunch at his Blue Plate Diner in Middletown.

He asked for the customer’s name and a contact phone number.

With a grin, the customer declared, “My name is Frank Zappa.”

Three generations of food service and hospitality have made rolling with the punches instinctive for Karousos. As he described the incident, he deftly fielded the zinger and volleyed it back, saying, “That’s great.

I’m a big fan!” But the guest was playing it to the hilt. Next question: May we have a contact phone number for contact tracing? The response – in song this time: “Eight-Six-Seven-FiveThree-Oh-Nine!”

We have been living with this virus, battling this virus and doing all that is possible to avoid this virus for months. There are specific measures and practices that have become recognized and accepted as effective, perhaps reluctantly. From the state’s point of view, what works is mandating masks, distancing and sanitization practices. In the event of an outbreak, the method pivots to quarantine and contact tracing to isolate spread. This should not come as a

SHIELDED: Blue Plate Diner staffer Tori Kulpa fills a customer’s order from behind plastic glass at the Blue Plate Diner in Middletown. The restaurant is following state safety requirements, including collecting contact information from customers.

COURTESY BLUE PLATE DINER

surprise to anyone, even while recognizing there are still some of us who have not ventured out since March.

What may be less well-known is the responsibility of the restaurant, or as it is referred to in the state mandate, the “establishment.” As in, “The Establishments must maintain a log to retain the names, phone numbers, and the date/time in the establishment of at least one member of each party dining in the restaurant. The logs must be kept for a period of 30 days and this information must be made available to [the R.I. Department of Health], upon request, for the purposes of

contact tracing.” This is one of the 12 checkboxes the state inspection teams complete during the frequent visits.

The Blue Plate has undergone three inspections and has received perfect scores. It is the restaurant owner, not public health officials nor the inspecting department, who is responsible for such recordkeeping and who RIDOH would turn to in the event of an outbreak. And for our clever customer who may have thought he was safeguarding his identity, from the guidelines: “Records dating before the previous 30 days must be permanently destroyed.”

Reasonable people ought to be able to allow these … intrusions for the time being.

RESERVE YOUR SPACE NOW

on one of our highly-read daily e-newsletters

These days, it is a narrative device among some members of the media who would like to be thought of as the voice of the public to portray the citizenry as victims of government overreach. There is evidence to support missteps on the part of officials despite their largely successful efforts to contain this unprecedented pandemic up to now, at least from a public health perspective. As such, reasonable people ought to be able to allow these inconveniences and even intrusions for the time being and for the greater good. If, after a vaccine or whatever the outcome, the overreach were to continue, that would be the time for justifiable outrage.

So what of the would-be Mr. Zappa?

Did he have standing to refuse to be forthcoming with traceable personal information? Should the restaurateur have refused him service? There are consequences on both sides. What kind of a scene would have resulted if the owner threw the individual out?

What would have been the long-term impact to the business with social media in the hands of such a customer? The guidelines state only that the names, phone numbers, and the date and time of the visit to the establishment “of at least one member of each party dining in the restaurant” be recorded. Mr. Zappa was eventually served, apparently after someone else in his party provided contact ­information. n Bruce Newbury’s radio show and podcast, “Dining Out with Bruce Newbury,” now in its 25th year, is broadcast on WADK 1540 AM and several radio stations throughout New England. Email him at Bruce@ BruceNewbury.com.

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FOR STARTERS SOMETHING NEW

SPOTLIGHT

EUROPEAN EXPERIENCE: Coowners Hercilia Corona and Sergio Mendoza hope to recreate the European experience with their Madrid European Bakery and Patisserie, which opened in Providence in September.

PBN PHOTO/ELIZABETH GRAHAM

Authentic European flavors

BY NANCY LAVIN | Lavin@PBN.com

RHODE ISLANDERS looking for a taste of Europe don’t have to travel far.

Madrid European Bakery and Patisserie in Providence offers a host of traditional European confections by Madrid native, baker and co-owner Sergio Mendoza.

Mendoza and his wife, Hercilia Corona, opened the Wayland Square cafe in September. The couple, who previously owned a bakery by the same name in Massachusetts, fell in love with the open-air retail space and signed a lease prior to the coronavirus pandemic.

Starting a new business as the virus raged posed challenges but since the opening, Corona reported only positive experiences from a rapidly growing set of regular customers.

The experience and the food are intended to recreate the European experience: the former boasts large storefront windows leading out to the sidewalk, and an atmosphere in which regular customers become close friends.

And the menu, although varied based on the season and culinary inspirations of Mendoza, incorporates local, all-natural ingredients into authentic recipes for Spanish almond flour cakes and Viennese croissants just the way Mendoza’s family made them in their own Spanish bakery.

Pastries cost around $4 each, with larger quantities and cakes available for preorder. n

WELL-ROUNDED: NeQter Labs CEO Richard Astle says he learned the importance of hiring “people smarter than me” to offset his areas of weakness and strengthen the software company, which he said has had its best year ever in 2020.

PBN PHOTO/ELIZABETH GRAHAM

NeQter buzzing in 2020 Software firm offers cybersecurity services That the “NeQter” in NeQter Labs is an abbreviated ­version of the term “network quantifier” is a play on words few outside the tech industry will appreciate. But the term has a second meaning, which refers to the product bees turn into honey.

NeQter Labs co-founder and CEO Richard Astle likened the company’s services to the honeymaking process – turning a raw material into a sweet, consumable byproduct.

In this case, the raw material is the complicated, number-heavy data that comprises a business’s network. The honey is the visual and graphic results of that data, created using specific, preconfigured algorithms, which show any potential holes or anomalies that may open up a company to fraud or a cyberattack.

NeQter Labs grew out of McLoughlin Research Corp., where Astle worked as an engineering project manager. The Middletown engineering and technical support company, which contracts with the U.S. Navy, found itself grappling with how to meet complex and nuanced federal cybersecurity standards for government contrac-

tors. What started as an effort to standardize the federal compliance process for McLoughlin grew into a marketable product, and from there, a company intended to help other small and midsize government contractors facing similar struggles with federal cybersecurity reporting.

“From the government side, they have a blind spot when it comes to the little guys,” Astle said.

Astle’s understanding of the challenges faced by small and midsize contractors, and the technology needed to help them, made him a fitting choice to lead the new company, which was founded with investment from McLoughlin. But the University of Massachusetts Dartmouth mechanical engineering graduate found other aspects of the CEO role more challenging.

“As an engineer, you’re a control freak,” he said. “You want everything in your control, and owning a

OWNER: Richard Astle

ADDRESS: 163 Exchange St., Suite 201, Pawtucket

TYPE OF BUSINESS: Software company

8 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

EMPLOYEES: 11

BY NANCY LAVIN | Lavin@PBN.com

business means a lot of unknowns.”

Astle also learned the importance of hiring “people smarter than me” to offset his areas of weakness and strengthen the company as a whole.

His strategy appears to be working. Despite the coronavirus pandemic, NeQter has had its best year ever, replacing the canceled trade shows, in which it was scheduled to market its products, with new partnerships with managed information technology service companies and webinar presentations.

That U.S. Department of Defense contractors, which comprise a majority of its clients, will soon be subject to new standards under the Cybersecurity Maturity Model Certification program has helped drive demand, Astle said.

But NeQter Labs has also worked to grow its client base and services beyond programs that meet federal compliance requirements for defense contractors.

Its triennial subscription model, which ranges from $275 monthly for a small office to up to $1,100 for larger companies with more assets, can help companies across industries more effectively monitor and detect cyberthreats. n YEAR FOUNDED: 2018 SALES: $1 million (estimate for 2020)

FOR STARTERS HOT TOPIC

R.I. explores play for esports

BY NANCY LAVIN | Lavin@PBN.com

VIDEO GAMES AREN’T JUST A WAY for teenagers to avoid their homework but a more than $1 billion industry that continues to grow despite the COVID-19 pandemic, and Rhode Island is looking to get in on the action through esports.

R.I. Commerce Corp. is ramping up efforts to establish the state as a hub for esports. Led by Siu-Li Khoe, vice president of business development, a team of R.I. Commerce staff is working to gauge interest in attracting major companies to the state and collaborating with colleges and universities on programs that would train future industry workers.

The heightened attention on esports comes after Malta-based gambling company Esports Entertainment Group’s $43 million acquisition of two esports companies, one of which, Helix eSports, operates a tournament venue in Foxborough, Mass. The Oct. 23 deal also includes an esports data analytics company founded by Providence resident and former Hasbro Inc. employee William Collis.

Khoe described the acquisition as a “giant opportunity,” proving regional demand and potentially paving the way for the multimillion-dollar enter-

tainment company to spread its roots into Rhode Island.

Collis also said that Helix is exploring opportunities in Rhode Island, although he declined to give specifics.

At the same time, a contingent of existing Rhode Island companies has transitioned into industry-related products as a way to retool their businesses amid the pandemic. Ritual Motion, a Warwick-based entertainment company established in April 2019, began by selling custom gloves to gamers. It has since expanded its

gamer-targeted offerings to include apparel, “superfood” nutrition and blue-light-blocking glasses through partnerships with five Rhode Island companies including SquadLocker Inc. and FGX International Inc., according to Dana Paul, Ritual Motion co-founder and CEO. Paul sees Rhode Island as the ideal location to start what he termed the “e-dustrial revolution.” In particular, the state’s concentration of college and university students – which make up a majority of esports players and consumers – makes it well-positioned to host tournaments and attract companies with the promise of trained workers.

“The opportunity is really just at the tip of the iceberg as far as com-

‘The opportunity is … at the tip of the iceberg as far as commerce and jobs.’

DANA PAUL, Ritual Motion founder and CEO

merce and jobs,” Paul said.

New England Institute of Technology, Johnson & Wales University and Providence College have opened dedicated esports centers, equipped with thousands of dollars in gaming stations designed for multiplayer competitions and recreational club team use. JWU also has a varsity team, with plans to offer scholarships to prospective players beginning in 2021, according to Aaron Colaiacomo, the university’s esports coach.

These schools have also started incorporating aspects of the esports industry into their curriculum.

NEIT’s esports club and center, which launched earlier this year, is designed to complement programs in game design, social media branding and strategy, according to Alan Resnick, the school’s vice president of strategic planning. Exactly what the state could expect to gain in jobs and revenue from the esports revenue – or when those gains would be realized – is unclear. But the ever-changing, fastmoving nature of the industry means any attempts to court companies or investors should be acted upon both swiftly and cautiously, Colaiacomo said. n

www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 9

FOR STARTERS | BUSINESS WOMEN

Mocarski built company to weather everything

BY SUSAN SHALHOUB | Contributing Writer

A

theme emerges when you speak with Susan Mocarski, owner and principal designer of rain apparel company Cleverhood LLC. The very ideals she has put to work in starting and operating her 10-year-old company have created products that are essentially tools for others to do the same.

“It’s about getting out – rain or shine – and not retreating,” she said of the Providence company’s high-performance rain poncho. “It’s about being a participant in where you live.”

That said, being a participant in the world of outerwear manufacturing was never part of Mocarski’s original plan.

A graphic designer, decorative painter and educator, her success in the apparel business has been a combination of being passionate about solving problems, researching unmet demand, relying on steadfast resourcefulness and ensuring her company remains nimble.

Growing up in a U.S. Navy family, Mocarski moved a lot. She remembers being in 10 different schools over 12 years and living in five different countries before she was 21.

Compared to living in the U.S., international cities such as Naples and Moscow had a different vibe when it came to getting around, she said.

“I would regularly get out and about on

my own,” she said. “And there were a lot of people with that sort of sensibility,” no matter the weather.

Mocarski went on to earn a bachelor’s degree in economics from American University in Washington, D.C. She worked in the city as a graphic designer for a time, before moving to New York, where she worked for two magazines before starting a decorativepainting business. After that, she moved to Rhode Island with her husband, had children and taught art at Sophia Academy in Providence for 10 years.

Her schedule at that point tended to be erratic depending on the day, said Mocarski.

She would find herself running errands, commuting to and from work, picking up children, and thinking about city people and their lack of good, functional outerwear to satisfy their need to cover up in the rain. “I started dreaming it up,” said Mocarski.

She found the lack of good rain gear even more ironic in a walkable city such as Providence. Mocarski’s research showed that most performance outerwear is made for men. “That got me kind of kooky,” said Mocarski. “Clothing for women was based on fashion, not performance. I had to wear my husband’s stuff.”

And what she was able to find in the outerwear marketplace at that time was cloth-

STOCKED UP: Susan Mocarski, owner and principal designer of Cleverhood LLC, checks the inventory in the company’s Providence retail store.

PBN PHOTO/ ELIZABETH GRAHAM

‘This world is very fast and clever. ...

So we have to be quick.’

SUSAN MOCARSKI, Cleverhood LLC owner and principal designer 10 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

ing for camping or hiking, but nothing along the lines of a high-performance rain poncho a city bike commuter could rely upon.

Mocarski launched Cleverhood in 2012, producing rain capes designed for people who want to get to work wearing a dress or suit and still arrive looking professional.

The first garments were made in a Newark, N.J., factory. Now Cleverhood’s design and shipping departments are based in Providence, with manufacturing in various U.S. locations and Vietnam.

The rain capes have functional, quality features with local sourcing such as YKK zippers; armholes that – with some help from magnets – snap shut to keep the rain out; a hood designed to maximize peripheral vision; reflective 3M piping; and elastic thumb loops to keep the cape in place when biking.

She is the sole designer, with the multi-skilled Cleverhood team totaling four, including one of her sons and a longtime family friend. A network of trusted subcontractors keeps things running smoothly. She prefers keeping the company small and tight, utilizing all available resources to their maximum capacity and being able to pivot where necessary.

For example, in the early days, Mocarski remembers needing models for products. “Anyone who came near me? I threw a poncho on them and put them in the rain for photos,” she said.

“It was all-hands-on-deck. Women have a tendency to do this, to lean on community really hard.”

For Mocarski, leaning on community has also meant support from the R.I. Commerce Corp. and the John H. Chafee Center for International Business at Bryant University. The Chafee Center helped Cleverhood – which saw a dip in sales due to the COVID-19 pandemic – strengthen its exporting program.

Cleverhood’s other support system is comprised of its customers. Calling them “oddly specific,” they consistently offer feedback on product features.

Being a nimble company also means that customers can and do see changes they suggest – such as a migrated thumb loop in a cape design – made in as little as four weeks, she said.

Cleverhood’s future may involve the inclusive marketplace. With an outerwear product for people who use a wheelchair, the company is in the process of becoming a brand offered on Juniper Unlimited, an inclusive and accessibility-minded e-commerce marketplace.

Next spring, Cleverhood products will also be in the Museum of Modern Art’s MoMA Design Store in Manhattan, she said.

Wherever Cleverhood goes next, Mocarski finds that the importance of preserving the ability to evolve is even more pertinent in manufacturing as opposed to other fields.

“This world is very fast and clever,” she said. “I am a 56-year-old woman. My colleagues and competitors are all 26-year-old guys, knowledgeable in more tech aspects of the business than I am. So we have to be quick.” n

NEWS BRIEFS | FOR STARTERS McKee calls for increased funding of Restore RI program PROVIDENCE – Lt. Gov. Daniel J. McKee has sent a letter to Gov. Gina M. Raimondo and R.I. Commerce Secretary Stefan Pryor asking the state to make changes and increases to the Restore RI small-business grant program to help entities recover from the ongoing COVID-19 pandemic before the 2020 Coronavirus, Aid, Relief, and Economic Security Act funding expires on Dec. 30.

The program, which was launched in August and expanded multiple times since then, recently doubled its maximum allocation from $15,000 to $30,000. As of Oct. 27, 1,650 businesses have benefited from more than $14 million in funding from the program.

More than $30 million in program funding is still available, McKee said.

McKee suggested an additional $75 million be allocated to the program by Dec. 1, which would increase the total funding from Restore RI to $125 million, or 10% of the total $1.25 billion in CARES Act funding the state received. n

Brown joins legal brief to block new federal visa rules

Downtown Providence seeing high rates of opioid overdoses

PROVIDENCE – Twenty-five colleges, including Brown University, filed an amicus brief in U.S. District Court in California on Oct. 30 asking the court to block the federal government from implementing new rules that would restrict H-1B visa ­eligibility.

The brief was filed as part of a lawsuit filed by multiple businesses and higher-education institutions, including the University of Southern California and the U.S. Chamber of Commerce, against the U.S. Department of Homeland Security and the U.S. Department of Labor. The brief argues that the new visa rules would “irreparably harm” colleges and academic medical centers’ ability to hire foreign workers and restrict who would be eligible for such visas.

Those restrictions, the brief states, would disrupt teaching and research at universities that rely on international workers’ expertise and talents, arguing that they “provide critical contributions to the research that drives our nation’s scientific progress, public health and economic vitality.” n

PROVIDENCE – Mayor Jorge O. Elorza recently shared findings and recommendations of two reports examining the high rates of opioid overdoses and strategies to prevent them in downtown Providence and the Upper South Providence, West End and Elmwood neighborhoods.

The Downtown Providence Overdose Hotspot Needs Assessment and the 02907 Health Equity Zone Community Overdose Engagement plan were conducted in the spring and summer of this year by the Rhode Island Public Health Institute and System Change Strategies. The reports were funded by the R.I. Department of Health and the Centers for Disease Control and Prevention.

According to the Downtown Providence Overdose Hotspot Needs Assessment, Providence had the highest percentage of opioid overdose-related emergency department visits (32%) and emergency medical service runs (31%) in the state from 2016-2019.

According to the reports, sustained financial support is needed to enhance overdose prevention efforts in the downtown, especially in Kennedy Plaza and Burnside Park. n

Aura Cannabis buying former BK’s restaurant FALL RIVER – BK’s Beacon Tavern, in the Fall River Industrial Park, closed on Oct. 31 after nearly nine years of operation, The Herald News reported Nov. 2.

The restaurant at 320 Airport Road is being sold to Aura Cannabis LLC, a marijuana cultivator and retailer that operates a facility in the city’s south end.

BK’s owner Bob Karam said the purchase would be finalized on Nov. 3 or Nov. 4.

“We never could get the volume of people that we thought we could get,” Karam said.

He said the restaurant did well during its first few years but failed to attract enough of the industrial park’s workforce of approximately 6,000, as well as patrons from the city’s north end.

BK’s employed as many as 10 workers but had only six when it closed.

Karam said federal assistance allowed BK’s to make payroll but it didn’t cover the loss of income. n

Providence man fraudulently obtains $20K in UI benefits PROVIDENCE – City resident Christopher Berarducci has been ordered to repay the state nearly $20,000 after pleading to fraudulently obtaining unemployment insurance benefits by not reporting earned wages to the R.I. Department of Labor and Training, Attorney General Peter F. Neronha announced Nov. 2.

Berarducci, who pleaded no contest to one count of obtaining money under false pretenses over $1,500 and one count of fraudulent access to a computer system, was given a fiveyear suspended sentence with probation and ordered to pay $19,824 in restitution to the state.

Had the case proceeded to trial, the state was prepared to prove that between October 2017 and May 2019, Berarducci was employed in the construction industry and collected unemployment insurance benefits while failing to report his wages to DLT. n

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www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 11

FOR STARTERS | WHAT’S HAPPENING Promotion techniques

TOP EXECUTIVE: General Dynamics Chairman and CEO Phebe Novakovic will be a featured speaker during the Greater Providence Chamber of Commerce’s annual meeting on Nov. 23.

COURTESY PHEBE NOVAKOVIC

EDITOR’S CHOICE

SCORE RHODE ISLAND is hosting a webinar to provide information, tools and techniques regarding the best ways to utilize social media to promote your business. A SCORE representative will explain how to grow your business by targeting prospects by using proven resources and tricks of the trade when conducting promotional campaigns on various social media platforms.

SATURDAY, NOV. 7, 9:30 A.M. TO NOON. Free Online webinar.

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Maximizing your business

Raimondo to speak during Providence Chamber meeting

THE GREATER PROVIDENCE Chamber of Commerce is hosting a webinar to explain how being a good business is good for business, and ways to maximize your operation. Elizabeth Shanley, area manager at The Fehlig Group, will discuss the importance of sustainability, assessing what you have in place and how to achieve results amid the challenges of the pandemic. This virtual event will be streamed live on Facebook.

MONDAY, NOV. 9, 9:30-10:30 A.M. Free

THE GREATER PROVIDENCE Chamber of Commerce is hosting its annual meeting virtually with five highly credentialed speakers who will share thoughts on topics including business, government, journalism and real estate. Gov. Gina M. Raimondo; General Dynamics Chairman and CEO Phebe Novakovic, CBRE Inc. Senior Vice President Alden Anderson Jr., Digimentors co-founder and Stony Brook School of Journalism visiting professor Sree Sreenivasan and Chamber President Laurie White will speak. The meeting will also include a conversation with Raimondo and Novakovic.

MONDAY, NOV. 23, 10-11 A.M. Free Online webinar.

INFO AND REGISTRATION: rb.gy/b8tfcj

Rhode Islanders Helping Rhode Island Get Back to Business Katie and her team assist injured workers in our state in getting the care they need to safely and quickly return to their jobs.

Visit beaconmutual.com for more information.

KATIE A. Claims Operations Manager At Beacon for 7 years A RI Resident for 38 years

12 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

Online webinar.

INFO AND REGISTRATION: rb.gy/untfjm

Attracting customers THE CENTER FOR WOMEN & Enterprise is hosting a webinar to provide digital marketing tools, tips and resources for driving customers to your business. Taline Badrikian, of Laveh Inbound Marketing, will explain how to navigate the business landscape amid the COVID-19 pandemic while utilizing website development, lead generation tools, paid advertising and social media to maximize marketing capabilities for your business.

TUESDAY, NOV. 10, 5-7 P.M. Free Online webinar.

INFO AND REGISTRATION: rb.gy/qahr6j

Assessing the biz landscape SCORE RHODE ISLAND is hosting a webinar to provide information and resources for assessing the business landscape in relation to your business. Participants will learn about the current state of the market, the economy and their industry and how they relate to business by reviewing strengths, weaknesses, opportunities and threats.

WHAT’S HAPPENING | FOR STARTERS THURSDAY, NOV. 12, 1-2 P.M. Free Online webinar.

INFO AND REGISTRATION: rb.gy/lzcp9a

Social media as marketing tool ONE SOUTHCOAST CHAMBER of Commerce is hosting a virtual seminar to explain how social media platforms can be utilized as marketing tools to boost sales and business development. The keynote speaker of the seminar is Adam Olenn, CEO of Rustle & Spark, a strategic communications firm that uses social media and other platforms to convey a company’s story to attract customers and drive sales. Rustle & Spark are branders, marketers, designers, builders, programmers, photographers, filmmakers and composers. Seminar participants will have the opportunity to ask questions about how to remain present, relevant and connected to customers while focusing on growing a business.

TUESDAY, NOV. 17, 9:30-10:30 A.M. Free

Develop new relationships

INFO AND REGISTRATION: rb.gy/18bjxw

SCORE RHODE ISLAND is hosting a webinar to explain how to network in the virtual space, using a variety of methods and tactics. Attendees will learn how to meet business owners, potential suppliers, or other professionals in their industry when in-person events are not available, as well as develop connections and build industry relationships.

SATURDAY, NOV. 21, 9:30 A.M. TO NOON. Free Online webinar.

THURSDAY, DEC. 3, 1-2 P.M. Free Online webinar.

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Managing your costs SCORE RHODE ISLAND is hosting a webinar to discuss ways for managing a company’s bottom line. Participants will learn about fixed versus variable costs, inventory, the cost of goods, how to analyze the impact of costs on cash flow and profitability, while also discovering ways to reinvest in a business to capture value and eliminate or mitigate waste.

UPCOMING PBN EVENT: The 2020 Business Excellence Awards ceremony will be held virtually on Nov. 18 at 4 p.m.

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Employee manuals THE RHODE ISLAND Manufacturing Association is hosting a webinar aimed at providing information, resources and updates to business owners regarding workers’ compensation and employee manuals. This will be an informative session focused on updating employee manuals, as well as reviewing new information on workers’ compensation insurance.

THURSDAY, NOV. 19, 10-11 A.M. Free Online webinar.

INFO AND REGISTRATION: rb.gy/qsilld

Negotiate contracts SCORE RHODE ISLAND is hosting a webinar designed to provide information about the legal aspects of negotiating contracts and other aspects of business. Participants will receive legal advice for negotiating building leases, including how to review existing contracts and leases for potential risks.

THURSDAY, NOV. 19, 1-2 P.M. Free Online webinar.

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CORONAVIRUS CRISIS FUNDS CONTINUED FROM PAGE 3

“What are we going to do by Dec. 30? We’re going to blow that money all over the street, and how responsible is that going to be?” said Rep. Blake Filippi, R-Westerly, the House minority leader.

“We should be making smart grants, not rushing around at the last minute to get the money out.”

RELIEF CREW: Kyle Bennett and Kristina Brown of the United Way of Rhode Island are helping to oversee the rental-assistance program Safe Harbor Housing, which has used some CARES Act funding.

CHIPPING AWAY The Raimondo administration has stepped up its allocation of federal COVID-19 aid in recent months.

In July, the governor announced the creation of a job-training initiative called Back to Work RI, using $45 million in federal relief money. Segments of the program continue to be rolled out, including a “virtual career center” set to be online at the end of November.

Late last month, R.I. Commerce Corp. unveiled a $20 million relief program aimed at the hotel, arts and tourism sectors. To qualify, organizations had little more than a week to apply for grants of up to $1 million that need to be spent by Dec. 30.

A day later, Raimondo launched a $5 million grant program aimed at helping small businesses pay for equipment and internet access so employees can work from home.

And earlier in October, the governor declared that she was willing to spend “tens of millions of dollars” for the state to evaluate and distribute future COVID-19 vaccines. An advisory panel has been assembled but no budget has been drawn up.

Some advisers say a vaccine won’t be ready until at least January, well past the deadline to spend the CARES Act funds.

The Raimondo administration argues that it was prudent to open the spigot slowly on the stimulus money. So far, the aid has funded crucial public health programs, including extensive COVID-19 testing and contact tracing.

If the state is forced to spend the rest of its $1.25 billion share immediately, future public health spending might have to come from the state’s general fund into 2021 and beyond, said Brett Smiley, director of the R.I. Department of Administration.

“While the state intends to use every dollar of federal aid by Dec. 30 to meet the health and safety needs of Rhode Islanders, we are hopeful that the deadline will be extended,” Smiley said. “This is important because the response to this public health crisis will not end on Dec. 30.”

PBN PHOTO/ MICHAEL SALERNO

HOSPITAL HELP

Emergency Management Agency.

Where has the bulk of CARES Act money gone so far?

PRICEY PLAN? While $77.5 million has been spent on “supplies” As the CARES Act deadline looms, a large as of Oct. 1, according to the state’s COVID-19 chunk of the relief money the Raimondo adminisTransparency Portal, $95.6 million has been spent tration is looking to spend is aimed at the public on “health care” and another $30 million was exhealth plan after a COVID-19 vaccine is approved. pended on surge preparation.

An eventual vaccine may come under political Indeed, keeping the hospitals of Rhode Island goscrutiny and R.I. Department of Health Director ing, including the three field hospitals built in case Dr. Nicole Alexander-Scott says the 16-member of an overwhelming surge of COVID-19 cases, has subcommittee of the state’s established Vaccine been a priority for the state.

Advisory Committee – made up of doctors, pharmaLifespan Corp. – the state’s largest hospital cists, epidemiologists, and community and nongroup – received $130 million in CARES Act funds profit leaders – will present clear-cut data during from the state and federal governments through outreach efforts.

August, while Care New England Health System – “The success of a vaccine is going to depend on the second-largest hospital group – received $62.4 the trust that the community has on the governmillion. ment to deliver this to the people,” said Dr. Pablo According to Raina Rodriguez, a subcommittee Smith, CNE spokeswoman, member and the medical the funds were mostly used director of community relato offset lost revenue due to tions at Care New England. the virus in order to main“The politicization surroundtain staffing and cover ading COVID-19 itself, vaccines ditional expenses. CNE lost and the CDC has already creapproximately $30 million ated a lot of distrust. Having for the fiscal year. an independent committee Jane Bruno, Lifespan’s to make sure distribution vice president of marketis done well is exactly what ing and communications, Rhode Island needs.” said the health care system But how much money the had treated the majority of state needs to dedicate to the hospitalized COVID-19 paeffort remains unclear. tients in Rhode Island in the The panel is slated to meet BRETT SMILEY, spring, and is preparing to weekly to start planning for R.I. Department of do so again as the state sees a vaccine, including reviewanother surge of new cases. ing a proposed 51-page plan Administration director “It is premature to deto ensure the state’s most termine if the current level vulnerable residents receive of state and federal funding will be enough for the vaccine first.

Lifespan to remain well-equipped to provide vital Dr. Karen Tashima, director of clinical trials at health care services for the long term,” said Bruno.

Lifespan’s Immunology Center, said an effective “There are just too many unknowns.” vaccine could start to be distributed as early as The field hospitals had a hefty price tag, with January. the state spending about $25 million for their conThe stimulus money would go toward vaccine struction and operation. The R.I. Convention Center delivery, appropriate storage, staff and sites to facility had 500 beds and costs reaching more than run mass vaccination clinics, distribution track$4 million for leasing and more than $6.6 million ing and administration, and a vaccine-awareness for the construction and maintenance – all covered campaign, according to RIDOH spokesman Joseph

by CARES Act funds and dollars from the Federal Wendelken.

Potentially dedicating “tens of millions of dollars,” as Raimondo suggested, to the planning and DELIVERY MAN: Lt. Gov. Daniel J. McKee meets eventual distribution of a vaccine doesn’t seem with Kim Fortier, co-owner of Me Too Preschool in outside normal public health standards, according Woonsocket, as part of his effort to get businesses to Todd Olszewski, a Providence College professor to apply for the Restore RI grant programs. He is of health policy and management. also delivering face masks. “[That amount] is very much public health PBN PHOTO/MICHAEL SALERNO doing its job,” said Olszewski, who recently co-

14 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

‘We try to meet a need, but things are changing quickly.’

CORONAVIRUS CRISIS ‘I ... think these funds were supposed to be for real people and not just for the government.’

MICHAEL DIBIASE, Rhode Island Public Expenditure Council CEO and president authored a book on vaccination. “We don’t want to make the same mistakes there were in the spring with the lack of [personal protection equipment] distribution and testing.”

RESTRICTED FUNDS There certainly has been no shortage of need for other types of relief.

Many of Rhode Island’s small businesses are struggling to remain afloat, many Rhode Islanders have lost jobs and the most-needy people are having trouble making rent payments.

According to state records, $21.4 million of the state’s federal stimulus money had been spent on “grants and assistance” as of Oct. 1. Getting the aid to where it’s needed the most has proved challenging.

Months ago, CARES Act money was allocated to rental assistance in two programs: the $7 million Safe Harbor Housing Program administered by United Way of Rhode Island; and $6.5 million HousingHelp RI, overseen by Crossroads Rhode Island and the R.I. Housing and Mortgage Finance Corp.

The programs were quickly inundated with applications, many of which did not include bank account information of the applicants and documentation showing the loss of income due to COVID-19, both required to receive rental assistance.

Many needy families don’t have bank accounts or income documentation, say those reviewing applications. Adding to the difficulties: news of the relief programs hasn’t reached many families whose first language isn’t English, according to Kyle Bennett, director of policy and research at the United Way. As a result, a combined $920,518 had been dispersed to 246 households as of mid-October, a fraction of the more than 7,150 applications received between the two relief programs.

Bennett said the state is trying to relax some of the regulations, and the Safe Harbor Housing Program staff will be beefed up in the coming weeks to help process the overwhelming number of applica-

tions already received.

Bennett said United Way recently approved $95,000 of rental assistance for 23 households from the Safe Harbor Housing Program, but he added that it’s far from being enough. He said he sees a tsunami of evictions on the horizon.

Karen Santilli, Crossroads CEO, said the nonprofit has already distributed the $500,000 it received in CARES Act funds for HousingHelp RI and dipped into its own budget to provide another $160,000 worth of rental relief to additional families.

But nearly 3,000 households have been disqualified based on the restrictions, and the program is no longer taking new applications while ones already in the system are reviewed. Santilli said it’s up to the state, not Crossroads, to reopen the application pool.

For state officials, overseeing the rental assistance money – like many other aspects of the pandemic and how to use COVID relief funds – has been difficult. After Safe Harbor Housing and HousingHelp RI started to streamline the application process and send out money to needy residents, the federal government announced an eviction moratorium through the end of the year.

“This is just indicative how this whole year has gone,” Smiley said, noting a lack of guidance from the federal government. “We try to meet a need, but things are changing quickly. Then there’s new information and we have to evolve to meet different needs.”

There have been hitches in getting help to small businesses, too.

In July, R.I. Commerce committed $100 million to provide grants to struggling small businesses in a program called Restore RI. Three months later, a little more than $14 million in grants has been dispersed to more than 1,650 businesses. Like the rental-relief applications, the initial requirements were difficult for some of the smallest businesses to meet, with Raimondo acknowledging in September that she was “not satisfied” with the status of the program.

R.I. Commerce has since changed the applications and opened the program to sole proprietors, nonprofits and child care facilities while doubling the maximum grant size from $15,000 to $30,000.

While Commerce officials say the amount of grants have increased, the changes still haven’t prompted many business owners to reapply, according to McKee. McKee, who has been critical of Raimondo’s use of the federal stimulus money, has visited businesses in various areas of the state, encouraging them to apply for the Restore RI grants.

In two letters last month to Raimondo, McKee expressed concern about the impending Dec. 30 deadline and suggested that another $75 million be allocated to Restore RI. “Congress and the [Trump] administration have not been sufficiently reliable where Rhode Island should gamble with small-business funds and risk having them expire on Dec. 30,” he said in a letter on Oct. 13.

WHERE HAS R.I. CARES ACT MONEY GONE? CATEGORY

EXPENDITURE

ENCUMBRANCE TOTAL

Supplies Health Care Surge

$77,504,825.00 $95,579,008.00 $30,011,704.98

$20,820,284.00 $230,670.00 $4,232,250.00

$98,325,109.00 $95,809,678.00 $34,243,954.98

Agency Operating & Other Testing Congregate & Child Care Grants & Assistance Contact Tracing Quarantining & Isolation Emergency Management TOTAL

$22,693,011.04 $23,288,797.06 $22,781,624.55 $21,375,059.59 $2,776,559.44 $1,999,399.64 $1,625,338.68 $299,635,327.98

$6,324,624.96 $760,992.87 $215,256.61 $1,583,657.02 $2,643,555.05 $1,725,407.20 $433,039.37 $38,969,737.08

$29,017,636.00 $24,049,789.93 $22,996,881.16 $22,958,716.61 $5,420,114.49 $3,724,806.84 $2,058,378.05 $338,605,065.06

The state’s COVID-19 Transparency Portal details how the federal stimulus money has been spent (expenditures) and what the state has issued a purchase order for but has yet to pay out (encumbrances). The figures are from Sept. 30, the last time that information had been updated as of Nov. 4.

SOURCE: R.I. COVID-19 TRANSPARENCY PORTAL

CRUCIAL CREATION: Dr. Pablo Rodriguez, medical director of community relations at Care New England Health System, says forming an independent committee to plan the state’s vaccine distribution will build trust in the process.

PBN PHOTO/ELIZABETH GRAHAM

Chris Parisi, founder of Trailblaze Marketing in Providence and leader of the Rhode Island Small Business Coalition, says small-business owners are frustrated.

“They feel as though all the work they put in for decades may be gone in an instant,” Parisi said. “We need more money in the hands of more small-business owners. And we need it as soon as possible.”

UNEMPLOYED With the state facing a budget shortfall that could run into the hundreds of millions of dollars, Raimondo had held onto a large portion of the federal stimulus money, hoping to gain more flexibility in plugging fiscal holes to avoid cuts to personnel and services.

Michael DiBiase, CEO and president of the Rhode Island Public Expenditure Council, wonders whether Raimondo’s desire to use some of the COVID-19 aid to plug budget holes has come at the expense of offering more relief to businesses and individuals.

“These funds were supposed to be for real people and not just for [the] government,” DiBiase said. “Individual Rhode Islanders and Rhode Island businesses, [which] have been most hard hit, should have received a larger portion of these funds.”

DiBiase, Raimondo’s former director of the R.I. Department of Administration, had suggested earlier this year that the state use a portion of the CARES Act money to replenish Rhode Island’s unemployment trust fund, which like many states has been depleted during the coronavirus crisis.

Such a use of the money is allowable under the CARES Act guidelines, and several states have taken that action, including Georgia, which transferred $1.5 billion into its unemployment trust fund last month.

Rhode Island’s trust fund stands at $185 million right now, down from $538 million at the start of the year. About 77% of what the state has paid out in benefits has come from federal initiatives such as the Pandemic Unemployment Assistance program, according to the R.I. Department of Labor and Training.

When asked whether the Raimondo administration is considering this use for the remaining federal stimulus money, Smiley’s office responded: “All options, including the possibility of using CARES Act funds to replenish the state’s unemployment insurance trust fund, are under consideration at this time.” n

www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 15

PBN.COM | ANOTHER LOOK Topgolf moves ahead in Cranston

BY MARY MACDONALD | MacDonald@PBN.com

(Editor’s note: A version of this story was first published on PBN.com on Nov. 3) CRANSTON – Topgolf Entertainment Group is moving forward on the development of a sports entertainment venue in Rhode Island, its first in New England, with site work on the Cranston location expected to begin in March 2021.

The location is 100 Sockanosset Cross Road, a site just north of Route 37. The venue will be constructed behind a former Citizens Bank operations building, part of which was converted to a COVID-19 field hospital this year. The site is largely a parking lot.

Topgolf plans to build a 167,000-square-foot entertainment center, over three levels, at the location, as well as an enclosed 209,000-square-foot outfield. The facility will be served by a 450-space parking lot, according to a final master plan approved in July by the city.

The property, owned by the real estate development company Carpionato Group LLC, will be retained under its ownership and leased to Topgolf, according to Gregg Perry, a spokesman for the Johnston-based Carpionato.

Topgolf will build the facility once the Carpionato Group prepares the site. Topgolf already has applied for the required permits, Perry said.

Construction is scheduled to begin once the site is prepared, in June 2021, and should be completed a year later.

Topgolf, which is based in Dallas, operates more than 60 entertainment centers that feature technology-infused golf activities and competitive games, according to its website. The closest full-service venue to New England is in Edison, N.J. Topgolf is well-regarded as a site for corporate retreats, according to Perry, because the entertainment facility will include meeting rooms, private meeting space and restaurants under one roof.

Topgolf is expected to be purchased by Callaway Golf Co., according to recent reporting by the Wall Street Journal. Callaway, which is based in Carlsbad, Calif., already has a 14% ownership stake in the company, which it said will be purchased through an all-stock deal.

Other investors in Topgolf, the Journal reported, include the Providence-based Providence Equity Partners LLC. Callaway told the Wall Street Journal that Topgolf has a $2 billion valuation. n

GREEN LIGHT: Construction on the golfing facility at 100 Sockanosset Cross Road, Cranston, is expected to begin in March.

COURTESY CARPIONATO GROUP LLC

16 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

HEALTH CARE | PBN SUMMIT SUMMIT

HEALTH CARE

FALL 2020

Panelists argue continued telehealth coverage a must pg. 18

Are you ready to return to workplace?

Not so fast pg. 20

T H A N K

Y O U

T O

O U R

PA R T N E R

S P O N S O R S

www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 17

PBN SUMMIT | HEALTH CARE Panelists argue continued telehealth coverage a must

BY ALEXA GAGOSZ | Gagosz@PBN.com

WHILE TELEHEALTH HAS been critical for providers to check in on many of their patients during the pandemic, Marie L. Ganim, R.I. health insurance commissioner, says it’s been “a lifesaver” that has improved attendance and lowered no-show rates for those seeking mental health care virtually.

“Our behavioral health crisis in Rhode Island is almost just as concerning as our COVID-19 crisis in Rhode Island,” Ganim said during PBN’s virtual Health Care Summit on Oct. 29. “And it has gotten worse with the [COVID-19] crisis.

These two things are related.”

Ganim said there’s been a spike in visits and success in connecting patients with their providers.

“Telemedicine made up for the early loss of in-person care,” said Ganim. “And providers are telling us that they can successfully provide care.”

Ganim was one of several panelists at the summit who made the case for continuing insurance coverage of telemedicine, even after the coronavi-

rus crisis has passed. Joining Ganim in the event’s first panel discussion was Dr. James E. Fanale, CEO and president of Care New England Health System; Dr. Alan Kurose, Coastal Medical Inc. CEO; and Dr. Kenneth Wood, Lifespan Corp. executive vice president and chief clinical officer.

Many of the speakers echoed Ganim’s sentiments: that telemedicine efforts by providers, which have been conducted by both videocon-

‘It’s essential that we stay connected with patients.’

DR. ALAN KUROSE, Coastal Medical Inc. CEO ferencing and by phone, have made up much of the care in some health systems in Rhode Island for the last eight months.

Kurose said that 54% of the encounters at Coastal Medical have been conducted by telehealth while 46% have been face to face.

“We can’t go much [more] above [46%],” he said, citing the high prevalence of the coronavirus in Rhode Island as cases continue to climb, with the positive test rate edging above 5% and the need to develop socially distanced floor plans in offices.

Prior to the pandemic, Coastal was not conducting videoconference vis-

its but had planned to do so. Within two weeks of the coronavirus hitting Rhode Island, Kurose said the system was conducting 500 videoconferences per day.

“It’s essential that we stay connected with patients during this period of time,” said Kurose. “I think the patient that is most at risk is the one who is isolated.”

Tufts Health Plan expanded telehealth services to children and adolescents, which “has been critical,” according to Dr. Claire Levesque, Tufts chief medical officer who participated in the summit’s second panel discussion. As anxiety and de-

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HEALTH CARE | PBN SUMMIT pression levels have heightened, telemedicine could be used more for treatment in behavior health.

“All of us – as human beings – will experience depression at some point in our lifetimes,” said Dr. Matt Collins, chief medical officer at Blue Cross & Blue Shield of Rhode Island, who was part of the second panel. Collins suggested that employers should be asking more mental health-related questions to employees as they continue to work from home. “It’s not ‘How are you doing,’ it’s ‘How are you holding up?’ It recognizes the challenges.”

Collins suggested making mental health discussions normal, creating flexible work hours and being tolerant of different ways work gets done as employees have children learning virtually at home and may be helping with elderly family members under the same roof.

The panelists noted these challenges for people working from home could lead to the need for more-accessible mental health care, such as through telehealth. “[The behavioral health side] is a different set of lessons in that environment than in the primary care environment or the facility environment,” said Ganim, who said behavioral health coverage should be looked at separately, such as with costsharing issues with insurance companies and what is clinically appropriate for treatment over phone calls or the use of videoconferencing tools. She said insurers would say that payment-parity would make sense.

SEE TELEHEALTH

MAKING THEIR CASE: The panel in the first part of PBN’s Health Care Summit gives glowing reviews of how telemedicine has aided the health care system during the pandemic. The panel included, clockwise from top left, Dr. James E. Fanale, from Care New England Health System; Dr. Kenneth Wood, from Lifespan Corp.; Dr. Alan Kurose, from Coastal Medical Inc.; and Marie L. Ganim, R.I. health insurance commissioner.

PAGE 22

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Scan the QR code to download. www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 19

PBN SUMMIT | HEALTH CARE Are you ready to return to workplace? Not so fast

BY ANDY SMITH | Contributing Writer

RHODE ISLAND BUSINESSES yearning to get back to a preCOVID-19 normal should not get their hopes up yet, particularly in light of a recent surge in cases and new restrictions announced by Gov. Gina M. Raimondo.

Panelists at the PBN virtual Health Care Summit on Oct. 29 acknowledged the persistence of “COVID fatigue” – which could cause people to relax their vigilance against the virus – but they said Rhode Island businesses will still need to be patient.

“A lot of businesses are going to have to reassess their timelines when it comes to bringing people back,” said Peter Marino, CEO of Neighborhood Health Plan of Rhode Island.

Marino compared business response to the pandemic last spring to a light switch – it was either on or off. In the coming months, he said, it should be more like a dimmer switch, capable of subtler responses to changing conditions.

So far, Raimondo has not changed her order restricting office occu-

pancy to 66% of capacity, although she has also urged people who are capable of working at home to do so.

“We need to stay vigilant,” said Dr. Matt Collins, chief medical officer at Blue Cross & Blue Shield of Rhode Island. “The name of the game is still to avoid the virus. … It’s a very sneaky disease.”

Collins said that when the pandemic arrived in March, businesses had to quickly look at their continuity plans, which were usually geared for blizzards, power failures or tech

issues – not a long-term pandemic.

“What it came down to was to ensure that business objectives are still being met,” he said.

The PBN Health Care Summit was divided into two separate panels.

Collins and Marino were members of the second panel. The other participants were Dr. Claire Levesque, chief medical officer for commercial products at Tufts Health Plan, and Siobhain Sullivan, chief operating officer for clinical operations for Rhode Island Medical Imaging Inc. In the early days of the pandemic,

Sullivan said, Rhode Island Medical Imaging had its patients wait in their cars so they wouldn’t crowd into a waiting room, possibly spreading the potential fatal COVID-19. Cleaning protocols became more stringent.

Everyone had to wear a mask.

“We were educating both patients and providers,” she said. “It was very difficult at first. Now, it’s second nature.”

Sullivan said many patients were afraid to leave their homes and come in, which meant some were skipping important tests and procedures. “We

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20 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

HEALTH CARE | PBN SUMMIT

TALKING IT THROUGH: Panelists in the second half of the PBN Health Care Summit on Oct. 29 discuss the implications of returning to workplaces amid a rise in COVID-19 cases. The virtual panel included, clockwise from top left, Dr. Claire Levesque, from Tufts Health Plan; Peter Marino, from Neighborhood Health Plan of Rhode Island; moderator Michael Mello, PBN editor; Dr. Matt Collins, from Blue Cross & Blue Shield of Rhode Island; and Siobhain Sullivan, from Rhode Island Medical Imaging Inc.

are encouraging patients to keep coming in,” she said.

Marino said every business needs to figure out how to operate in a dramatically altered landscape.

Neighborhood Health Plan, for

example, has 550 employees. Nearly half of those employees have schoolage children who have been learning remotely from home. The company had to plan the best way to get its work done while accommodating

employees’ child care needs.

Collins said companies need to be flexible about work hours, and tolerant of different ways people get their work done.

At some point, the threat of the

pandemic should begin to recede.

But even then, panelists said, things will be different, the so-called “new normal.”

“A lot of companies are going to have to rethink how they operate,” Marino said. Companies have become accustomed to having a large part of the workforce working from home, and communicating through digital platforms such as Zoom. Much of that will continue.

“I yearn for the personal contact, myself,” Marino said. “Many folks will look to return to that when it’s safe. But what will be the impact on folks interacting with each other, the impact on our [business] culture?

There will have to be an enormous effort to maintain the great cultures we have created here.”

Sullivan said having employees work from home has advantages: There’s no commuting; companies can draw employees from a wider geographic area; and there are cost savings. But she also said she misses the “water cooler” effect of close interaction with fellow workers.

Panelists also expressed concern about the mental health impact of the pandemic, particularly when combined with a divisive election cycle and civil unrest in the country.

Levesque, of Tufts Health Plan, said anxiety and depression are on the rise. People who are working at SEE WORKPLACE PAGE 22

Lifespan thanks and salutes all of Rhode Island’s health care workers Even in the most extraordinary conditions, you show courage, selflessness, and compassion.

You demonstrated skill and commitment during the unprecedented circumstances of this year as you managed situations that were new and challenging.

We offer our heartfelt gratitude for your dedication to patients, as well as thanks to health care providers and support staff who join together to deliver health with care.

www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 21

PBN SUMMIT | HEALTH CARE TELEHEALTH

WORKPLACE

CONTINUED FROM PAGE 19

CONTINUED FROM PAGE 21

Prior to a new rise in cases in Rhode Island, and much of the country, health care facilities were working to prove to patients that it was safe to return by adding advanced health screenings, heightened cleaning efforts and pandemicrelated procedures such as having patients wait in their car instead of a waiting room, according to panelist Siobhain Sullivan, Rhode Island Medical Imaging Inc. chief operating officer of clinical operations.

“People were hesitant to leave their homes,” said Sullivan. “Peace of mind is priceless right now.”

While patients may have increased confidence to go to a doctor’s office, Fanale said at Care New England the number of mammograms performed by the health care system is down 20% this year.

“You can’t convince them all,” Fanale said of making patients comfortable with in-person procedures and exams. These declines could cause further delays in screenings, diagnosis and care. Because of this, Fanale said, “telehealth care cannot go away.”

Wood said he has seen the data that outlines how cancer care has been delayed because of fears by patients going back to the doctor’s office and hospitals.

“Disease doesn’t abate because of the pandemic,” said Wood, who added that there’s significant uncertainty as to whether the insurance rate structure for telemedicine coverage will continue. In Rhode Island, telemedicine coverage has been mandated under temporary executive orders issued by Gov. Gina M. Raimondo.

“I understand the finances and the reimbursement, but I think that if we keep the patient at the dead center of what we do, and their best interests are what drives our practices, inevitably it’s the most cost-effective way,” Wood said.

Ganim said telemedicine is getting reimbursed at the same level as in-person care, but it remains unclear whether that will last beyond the pandemic.

“It’s not as easy as saying that all across the country that every state that is dealing with this – and every state is dealing with this – and the federal government are all going to uniformly say, ‘Yes, every telephonic visit, every audiovisual visit will be reimbursed the same way as an in-person visit,’” said Ganim, who said Raimondo placed the coverage of telemedicine in her state budget proposal. “That’s probably not going to happen.

“We hope that the legislature takes it up when they take up the budget,” she said. n

home are stressed because they’re juggling family obligations and work responsibilities all in one place, blurring the work-life balance. Also, people who must go to work are afraid of increased exposure to COVID. And then there are the thousands of workers who have lost their jobs.

Levesque said Tufts Health Plan is seeing a lot of claims for injuries related to falls, which is considered an early indicator of opioid and alcohol abuse.

She said it’s important to reduce the stigma surrounding behavioral health issues. Employees should be encouraged to take vacation days, even if they can’t travel. Or even take sick days for mental health reasons.

Tufts has an Employee Assistance Fund, she said, that allows employees to apply for $1,000 to use any way they want.

Levesque said employers need to communicate information about mental health resources to their employees – and preferably not by tucking it into a human resources handbook. “No one reads those,” she said.

“It’s all about engagement and trust,” Marino said. “Don’t ask ‘How are you doing?’ but ‘How are you holding up?’ Or just ask folks what’s on their minds, instead of sticking to very specific questions about work.”

In response to a question about the future of the Affordable Care Act, better known as Obamacare, the panelists said they are concerned, particularly in light of an upcoming Supreme Court case. In November, the high court is expected to hear oral arguments in a case seeking to overturn the health care law.

Millions of Americans could lose their health insurance if the law is struck down.

“I remember treating patients before the Affordable Care Act; there was a huge change that came about as a result of the act,” said Collins.

“We created access to health insurance. It would be unconscionable to say, ‘Let’s just get rid of Obamacare.’ ” Marino said there are health care providers in the state who count on the federal money generated by Obamacare. He also said that the end of Obamacare funding could send the state budget into disarray.

“There’s a lot at stake here,” he said. “We need to keep moving down the path of what I’d call strong health care for all.” n

22 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

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EVERYBODY’S BUSINESS Business owner a rarity in his tribe

BY MARY MACDONALD | MacDonald@PBN.com

(Editor’s note: This is the third installment in a monthly series speaking with minority business owners and leaders. Each will be asked their views on minority-business conditions in the state and for ways to improve those businesses’ chances for success.)

RHODE ISLAND IS HOME to many family-owned small businesses that pass from generation to generation. That legacy is important to Robert Shumate, who started working alongside his father when he was 15, and who now works alongside his own son.

The family business is ice. Sometimes people refer to it as party ice, for drinks and sodas in backyard barbecues, but it’s also sold to restaurants and caterers.

Shumate, the second-generation owner of Pier Ice Plant Inc., is also a Narragansett Indian Tribe member.

He knows what he has is somewhat unusual.

Shumate said most of the businesses owned by fellow tribe members are individual operations, often people working for themselves in construction or the fine arts.

His maternal grandfather, for example, made his living as a landscape artist.

It was his late father, Lawrence Shumate, who started the family business in the mid-1960s when he purchased an existing ice plant in Narragansett, named for the pier that used to be near the town beach. The business was previously run by the Point Judith Fishermen’s Cooperative.

Shumate started working alongside his father from that point on. “It took off from there,” he said.

By 1980, Shumate was running the business.

Under his father, it transitioned from outfitting commercial fishing vessels with ice to making and distributing bagged and block ice. Pier Ice now distributes across Rhode Island, including Block Island.

His customers range from liquor stores to marinas and from campgrounds to convenience stores.

In the summer, the business employs up to six people, and in the fall and winter, it’s Shumate and one of his sons.

In the future, Shumate said he will hand the business over to his son, securing a third generation in the family business. It’s a legacy he is happy to continue. Among the 1,500 or so Narragansett tribal members, multigenerational businesses are rare.

Through the years, Shumate has employed 20 or more Narragansett tribal members, including siblings and young women, anyone willing to work hard and do the physical work required. “I’m always willing to give a tribal member a chance,” he said.

Because his father started the business, it was well-established when the younger Shumate became the owner. He hasn’t experienced discrimination or racism as a businessman, he said, and has tried to operate from the position of being open to all.

“The opportunity of taking over the ice plant in Narragansett was an idea that he had,” Shumate said of his father. “He really had the borrowing power to go to a bank, not that he had that much money in his pocket when he started.”

LASTING LEGACY: Robert Shumate, owner of Pier Ice Plant Inc., is a Narragansett Indian Tribe member who is looking to pass the business to one of his sons, just like Shumate’s father did decades ago.

PBN PHOTO/ELIZABETH GRAHAM

1

Robert Shumate

Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do?

That’s a tough question for me to answer. I don’t believe so. Maybe because of the way I was brought up. Racism? It isn’t a word I try to use.

2

How dependent do you think most minorityowned businesses are on the support of fellow minorities? Is that a sustainable business model?

We sell packaged ice to just about anybody. … I can’t think of anyone who I’ve done business with who is a Narragansett [Indian]. My business is not aimed at minorities at all. I would think I have an unusual situation. I’m lucky to have been in a family-owned business.

3

What could Rhode Island do to help minority-owned businesses succeed?

The main thing is to have the opportunity to borrow money at any savings and loan institution.

That would be the major question for anyone getting started. In order to start something, you have to have some kind of capital. [My father obtained a U.S. Small Business Administration loan.] Having been from Washington, D.C., he recalled working with people down there who were SBA associates.

My dad was a good businessman. He understood finances and where to borrow money from. He knew when and where to get it. Old Stone Bank, at that time, was a major contributor [to the business], who we borrowed money from.

Pier Ice Plant Inc. owner

4

Are you aware of any minority-owned businesses that have been forced to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly?

I’ve never had any trouble borrowing money. As far as anyone else? I can’t really think of a tribal member who has a business of their own unless they are stone masons or construction workers.

Many tribal members are in business as artists, whether it’s jewelry or items they can make or sell. My mother’s father was an artist, a signed painter. He did a lot of landscape painting.

5

If a minority entrepreneur asked you where they could turn to for support for their business, where would you direct them?

I’d try to make it so they could establish some kind of credit at a savings and loan. I work with The Washington Trust [Co.]. … The best solution is to go to different savings and loans [to find one that will] finance you on whatever your endeavor is going to be. n

‘I can’t really think of a tribal member who has a business … unless they are stone masons or construction workers.’ www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 25

FOCUS | ACCOUNTING/BUSINESS VALUATION & SUCCESSION

Crisis spurs businesses to reevaluate their worth

BY NANCY LAVIN | Lavin@PBN.com

AS

principal of Barrett Valuation Services Inc., John E. Barrett Jr. staked his career on his ability to assess risk.

But the metrics he has long relied on to calculate a company’s risk, and in turn, its value – historical performance and cash flows, market values, and assets – fail to capture the rollercoaster ride the economy has taken since COVID-19 hit.

Add in the potential for a change of political power in Washington postNovember election and heightened civil unrest amid continued police brutality and the country seems to have reached a boiling point of risk potential.

Which means Barrett and other certified business valuation analysts have had to get creative with the traditional tools and measurements they use in their assessments, while simultaneously servicing an influx of clients seeking valuations as a measure of certainty when all else is in flux.

“When things are uncertain, people look for opportunities to buy, sell or gift, all of which require valuation services,” said Kevin A. Papa, a partner at Piccerelli, Gilstein & Co. LLP whose certifications include public accounting and business value analysis.

Another driver behind businesses’ interest in valuations is the ample array of government and private loans and grants available to help offset COVID19-related losses. While most of these, such as forgivable payroll loans through the U.S. Small Business Administration’s Paycheck Protection Program, don’t strictly require a business valuation, many companies want updated value assessments in order to better understand how much money they may be eligible for, according to Melissa Travis, CEO and president of the Rhode Island Society of Certified Public Accountants.

“It’s one thing for a business owner to perceive what they think their business is worth,” Travis said. “It’s a whole other thing to get it valued.”

The RISCPA has been inundated with inquiries from companies looking to get a handle on how their business value has changed – and for how long that change might last – since March, Travis said. At the same time, the demand has sparked new classes and certification offerings from national accounting organizations seeking to grow the number of CPAs with the requisite training for business valuations.

Barrett has long been sought after

SERVICES SOUGHT: Certified public accountant and certified business appraiser John E. Barrett Jr., principal at Barrett Valuation Services Inc., has experienced increased demand and new challenges in calculating business values since the pandemic hit.

PBN PHOTO/MICHAEL SALERNO

‘When things are uncertain, people look for opportunities to buy, sell or gift.’

KEVIN A. PAPA, Piccerelli, Gilstein & Co. LLP partner 26 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

for his firm’s specialty in valuation services. But general accounting firms such as Kahn, Litwin, Renza & Co. Ltd. are also seeing a surging interest in valuation services, according to Karen Rice, a CPA and valuation analyst and partner in KLR’s tax services group. None of the clients seeking valuations through KLR or other local analysts were willing to be interviewed for the story.

Not only is the number of clients asking for valuations piling up but the assessments have also gotten more complicated.

The traditional benchmarks used to determine a company’s worth – based largely on performance history over a period of several years – no longer make sense given the dramatic changes most have experienced since the pandemic hit.

“There’s really no pattern anymore, it’s a spike up or down,” Papa said of company performance.

Rather than looking at the history of capitalization of earnings, Papa has turned to an alternate formula known as discounted cash flow, which better captures the immediate market fluctuations the pandemic has caused.

But inputting information into a formula isn’t enough; analysts must also use their savvy and company data to estimate how long a change in value will last, projecting multiple values based on a range of scenarios.

Further complicating the valuation process is how to account for shortterm injections of cash through PPP loans or other funding: should it be considered debt or income? Even if the company is expecting its loan to be forgiven, indicating it should fall on the income side of calculations, including the one-time payment in longer-term risk calculations may be inaccurate.

The American Society of Certified Public Accountants, along with other state and national organizations, has issued guidelines around how to include PPP and other loan or grant monies into valuation calculations.

But individual analysts still differ in their approaches.

“If you had three people value your business, two would come up with a different amount,” Travis said.

While the uncertain economic climate makes calculating a business’s worth more difficult, it’s not an unprecedented situation. Barrett likened the current marketplace fluctuations to the ones in the 2001 dotcom bubble and the 2008 financial crisis.

“We are in a time of greater uncertainty, yes, but we also have a lot of tools in our tool kit to deal with [it],” he said.

The biggest takeaway, in Barrett’s mind, based on those prior economic crises is that the strength of a company’s balance sheet before a recession remains the biggest determinant of its ability to weather an economic storm, regardless of short-term changes in valuation.

Savvy business owners might also find ways to take advantage of temporary reductions in their value, which could be used to reduce the amount they must pay in federal gift and estate taxes, for example. n

ACCOUNTING/BUSINESS VALUATION & SUCCESSION | FOCUS TAXES CONTINUED FROM PAGE 3

with thousands of Rhode Islanders, are now working from their homes, racking up bigger electricity bills and using their own office furniture and computers. But if they are employees – paid with W-2s – they cannot declare a home-office deduction for expenses incurred on behalf of work, even if their offices remain closed.

Under tax law, only people who work as independent contractors or for themselves can claim a homeoffice deduction, according to David Shepherd, a certified public accountant and owner of David J. Shepherd CPA LLC in Cumberland.

“If you’re a W-2 employee, you can’t claim home office,” he said.

But there is some relief allowed for employees who are now largely working from home. They can still file for business-related expenses, he said, including travel expenses (outside of commuting) and work-related meals if they are ordinary and necessary, he said.

For businesses that spent money on personal protective equipment or cleaning products, or made improve-

HOLDING ON: Joseph A. Mansour Jr. is the president of Marcovich, Mansour & Capobianco LLC in Lincoln, an accounting firm that represents about 400 businesses that received Paycheck Protection Program loans. Mansour said he’s advising those clients to keep some of that money, if possible, in case they have to pay taxes on the funds in April 2021.

PBN PHOTO/MICHAEL SALERNO

CONTINUES ON PAGE 29

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• An anniversary, accomplishment or milestone event • A new product line or service

CELEBRATING MILESTONES & ACHIEVEMENTS

• Uniqueness and competitive edge • Brand and image in the community • Your team of professionals

www.pbn.com | PROFILES OF SUCCESS n PROVIDENCE BUSINESS NEWS | DECEMBER 2019

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RHODE RHODE ISLAND ISLAND INFRASTRUCTURE INFRASTRUCTURE BANK BANK  

O O

LEGACY

riginally established by the Rhode Island General Assembly in 1989 as the Clean Water Finance Agency, the Infrastructure Bank’s mission was significantly expanded in 2015 to include energy,

brownfield remediation and climate resiliency initiatives. The Infrastructure Bank’s expanded mandate has significantly enhanced its ability to provide competitive financing to a broad variety of infrastructure-based projects.

 

HOW HOWWE WEWORK WORK

Jeffrey JeffreyR.R.Diehl Diehl Executive ExecutiveDirector Directorand and Chief ChiefExecutive ExecutiveOfficer Officer

STEP 1 • Generally, we partner with communities and a state agency to identify viable infrastructure projects • The state agency determines project eligibility, while the Bank determines financing structure STEP 2 • The Bank and its partner agency work collaboratively with borrowers to prepare project applications STEP 3 • Project applications are submitted to the partner

agency, which ranks all applications using a scoring criteria to produce a Project Priority List (PPL) STEP 4 • The Bank will strategize with prospective borrowers to determine the most efficient way to finance the project STEP 5 • The Bank makes periodic disbursements as the project proceeds in conjunction with site reviews conducted by our partner agency • Loans are repaid over time and the recycled funds are used to make additional loans

PROGRAMS PROGRAMS BROWNFIELDS REVOLVING LOAN FUND The Brownfields Revolving Loan Fund provides financing for the remediation of contaminated brownfield sites to return these sites to productive use.

CLEAN WATER STATE REVOLVING FUND The Clean Water State Revolving Fund is a program through which local governmental units, quasi-public agencies and private entities can access affordable, long-term financing for the completion of wastewater, stormwater and other water pollution abatement projects.

COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY The Commercial Property Assessed Clean Energy (C-PACE) program provides 100% long-term fixed rate financing for energy efficiency and renewable energy improvements to commercial and industrial buildings.

COMMUNITY SEPTIC SYSTEM LOAN PROGRAM The Community Septic System Loan Program provides interest free financing to homeowners for the repair or replacement of failed, failing or substandard septic systems, or to replace a cesspool with a septic system.

3030 YEAR YEAR ANNIVERSARY ANNIVERSARY Officials Officialsbreak breakground groundto tomark markthe theconstruction constructionof ofWarren’s Warren’s Wastewater WastewaterTreatment TreatmentFacility, Facility,aaproject projectfinanced financedthrough through the theBank’s Bank’sClean CleanWater WaterState StateRevolving RevolvingFund.

Fund.

DRINKING WATER STATE REVOLVING FUND The Drinking Water State Revolving Fund is a financing program through which RIIB makes low-interest loans to community public water systems, non-profit noncommunity public water systems, privatelyorganized water suppliers and local governmental units to complete drinking water infrastructure projects.

EFFICIENT BUILDINGS FUND The Efficient Buildings Fund makes lowinterest, long-term financing available to municipalities and quasi-public agencies for the completion of energy efficiency and renewable energy projects.

FACILITY PLAN LOAN PROGRAM The Facility Plan Loan Program provides financing to local governmental units for the completion of water pollution abatement project facility plans, and amendments to such plans.

MUNICIPAL RESILIENCE PROGRAM The Municipal Resilience Program (MRP) provides direct support to Rhode Island cities and towns to deploy a planning process which identifies the local climate change vulnerabilities and community strengths.

Upon successful completion of the planning process, municipalities will be designated as a “Resilient Rhody Municipality” which enables the cities and towns to apply for dedicated action grants to implement priority projects, which address the vulnerabilities uncovered through the initial phase.

RHODE ISLAND WATER POLLUTION CONTROL REVOLVING FUND The Rhode Island Water Pollution Control

MUNICIPAL ROAD AND BRIDGE REVOLVING FUND The Municipal Road and Bridge Revolving Fund is a program through which local governmental units can access below market, long-term financing for transportation infrastructure projects.

USExtruders, Extruders,aamanufacturer manufacturerof ofscrews screws US andextruders extruderslocated locatedininWesterly, Westerly,financed financed and theinstallation installationof ofaa210.4 210.4kW kWrooftop rooftopsolar solar the installationusing usingthe theCommercial CommercialProperty Property installation AssessedClean CleanEnergy Energy(C-PACE) (C-PACE)program. program.

Assessed

Providence ProvidenceWater Watercrews crewsreplace replaceaaresidential residential customer’s customer’slead leadservice serviceline. line.AAproject projectmade madepossible possible through throughthe theBank’s Bank’slead-pipe lead-pipereplacement replacementprogram. program.

COMPANY INFORMATION Our mission is to actively support and finance investments in Rhode Island’s infrastructure. The Infrastructure Bank does so through a variety of means, including the issuance of bonds, originating loans and grant making. Through its activities, the Bank fosters infrastructure improvements that create jobs, promote economic development and enhance the environment.

8 | DECEMBER 2019 | PROVIDENCE BUSINESS NEWS ■ PROFILES OF SUCCESS | www.pbn.com

Your company’s profile in this section features a two-page spread of text, photos and an info box highlighting your company’s vital statistics.

Revolving Fund provides financing for projects that reduce water pollution and may not meet the eligibility requirements of federal programs, such as the Clean Water State Revolving Fund.

SEWER TIE-IN LOAN FUND The Sewer Tie-In Loan Fund provides interest free financing to homeowners wishing to connect their residence to a local sewer system and to properly abandon an existing septic system.

STORMWATER PROJECT ACCELERATOR The Stormwater Project Accelerator provides upfront capital for green stormwater infrastructure projects that will eventually be funded through state and local reimbursement grants.

2019 2019

ADDRESS

235 Promenade St. Suite 119 Providence, RI 02908 NUMBER OF EMPLOYEES

401.453.4430 riib.org info@riib.org

14 RIinfrastructure/ YEAR ESTABLISHED

1989

RI_InfraBank

www.pbn.com | PROFILES OF SUCCESS ■ PROVIDENCE BUSINESS NEWS | DECEMBER 2019

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CENTRAL CENTRALRHODE RHODEISLAND ISLANDCHAMBER CHAMBEROF OFCOMMERCE COMMERCE AND AND WE’VE WE’VE GOT GOT YOUR YOUR BACK BACK

Rhode RhodeIsland Island Infrastructure InfrastructureBank Bank isisRhode RhodeIsland’s Island’s central centralhub hubfor for financing financinginfrastructure infrastructure improvements improvements for formunicipalities, municipalities, businesses, businesses,and and homeowners. homeowners.We We leverage leveragecapital capitalininaa revolving revolvingfund fundto tooffer offer innovative innovativefinancing financingfor for an anarray arrayofofinfrastructureinfrastructurebased basedprojects projectsincluding including water waterand andwastewater, wastewater, road roadand andbridge, bridge,energy energy efficiency, efficiency,brownfield brownfield remediation remediationand andclimate climate resiliency. resiliency.These Thesequality quality ofoflife lifeprojects projectsimprove improve the theState’s State’sinfrastructure, infrastructure, create createjobs, jobs,promote promote economic economicdevelopment development and andenhance enhancethe the environment. environment.

Look around.

What do you see?

People creating enterprise right here in Rhode Island.

MANCINI MANCINI CARTER CARTER

Yet with today’s negativity maybe you think, “Why am I here?” Why not Boston, Virginia or growth

M M

ancini Carter has established a successful record across business, real estate development, construction and property tax and assessment law in assisting its clients to overcome business and personal obstacles and to create, explore and achieve new opportunities.

Mancini ManciniCarter, Carter,PC PCisisled ledby byJohn John O. O.Mancini, Mancini,aahighly highlyversatile versatile attorney attorneylicensed licensedto topractice practiceinin Rhode RhodeIsland, Island,Massachusetts Massachusetts and andConnecticut.

Connecticut. Mr. Mr.Mancini Mancini represents representsaadiverse diverserange rangeofof clients clientsacross acrossall allthree threestates statesand and has hasprovided providedexceptional exceptionallegal legal counsel counseland andsupport supportininthe theareas areas ofofreal realestate, estate,business businessand andland land use uselaw. law. As Asaa1995, 1995,cum cumlaude, laude, graduate graduateofofBoston BostonCollege, College, Mr. Mr.Mancini Manciniattended attendedBoston Boston University UniversitySchool SchoolofofLaw, Law,where where he heobtained obtainedhis hisjuris jurisdoctor doctorinin 1998.

1998.Throughout Throughouthis hiscareer, career,he he has hasserved servedas aslead leadcounsel counselininsome some ofofthe thelargest largestand andmost mostcomplex complex real realestate estatedevelopments developmentsininR.I. R.I. At AtMancini ManciniCarter, Carter,Mr. Mr.Mancini Mancini seeks seeksto todevelop developattorneys attorneysthat that are arepassionate, passionate,professional professionaland and competent, competent,advocating advocatingthe the clients’ clients’needs needszealously. zealously.

AREAS AREASOF OFPRACTICE PRACTICE REAL ESTATE & DEVELOPMENT

CONSTRUCTION LAW

Our Real Estate practice is our “bread and butter,” where we represent major national, regional, and local developers of properties of all kinds – including office, industrial, retail, residential, and mixed-use.

Our Construction Law practice encompasses the representation of an array of construction industry clients from small, family-owned companies with one pickup truck to some of the largest construction companies in Rhode Island.

BUSINESS & CORPORATE LAW

Our Business & Corporate Law practice provides a broad range of counseling and transactional services, including: commercial contracts, business formation and dissolution, sales, mergers, and acquisitions.

COMMERCIAL & CIVIL LITIGATION

Our Commercial and Civil Litigation team addresses issues as they arise in real estate and business; from specific performance claims to shareholder disputes.

PROPERTY TAX & ASSESSMENT LAW

Our Property Tax & Assessment Law practice counsels and represents some of the largest property owners in Rhode Island through all areas of the property tax and assessment review process, frequently meeting with Assessors, appearing before Municipal Boards and Trial and Appellate Courts.

CLIENT CLIENTPROJECTS PROJECTS

cities like Atlanta or Austin?”

Mancini Carter has been instrumental in facilitating the development and approvals of various projects, throughout Rhode Island and Massachusetts. In doing so, it has assisted its clients with the acquisition of real estate, the financing for and the approvals of various projects.

Then perhaps you smile and think, “Because I really, really like it here!”

You’re not alone.

YOU’RE YOU’REMAKING MAKING THINGS THINGSHAPPEN HAPPEN IN INRHODE RHODEISLAND ISLAND

RI Lighthouse Picture: Bonnie MacMaster Hawksley

One thing that keeps

Mancini Carter has helped its clients achieve their goals in developing commercial mixed-use centers, office projects, shopping centers, planned unit and condominium developments (residential and commercial), financing and general limited partnerships and joint ventures for the acquisition of real estate and development of the same. Moreover, Mancini Carter has been at the forefront of renewable energy development, seeking the legal entitlements for wind turbines and solar projects throughout the State of Rhode Island.

Nicholas NicholasGoodier, Goodier,Thomas ThomasCarter, Carter,John JohnMancini Manciniand andMichael MichaelMineau.

Mineau.

12 | DECEMBER 2019 | PROVIDENCE BUSINESS NEWS ■ PROFILES OF SUCCESS | www.pbn.com

NUMBER OF EMPLOYEES

And for the last 40 years, The Central Rhode Island Chamber has had your back.

We take a whole system approach, focusing first on you, supporting your success with all the tools at our disposal. Then we include community.

So that your life and that of your employees and customers is as fulfilling as it can be.

Our community is a better place because the Chamber brings synergy to the activities of area

IN 2019 our focus on members included 125 opportunities for them to make new and productive contacts…. 48 in person and web based continual learning opportunities…. 14 fun events. We represented businesses in our efforts with the Chamber Legislative Coalition … exercised our right to speak out in defense of free markets… and found solutions to 427 specific member problems or concerns.

businesses. Small actions multiplied across the entire Chamber are having big impacts on quality of life and success in enterprise.

Uncertainty.

We like finding resources we can share with you. When you

beautiful architecture. History. Food (some of the

But you work it every day.

most creative chefs live in this foody paradise). And

We believe in you and in your ability to create both

have a minute, invest in yourself and your company.

People might sometimes be slow to warm up.

Which benefits all of us.

But they’ll remember you long after you’re gone.

Our members are community leaders who believe

If you like the ideas, please share with your colleagues.

(Pre internet and without a budget!)

• Ever see the movie, “The Hand That Rocks the Cradle?”

Learn a key lesson from ‘Brownie Marketing’ in this story.

• Know what you’re really selling? Hint: it’s probably not

the same. They’ve told us.

S*** HAPPENS! And when it does, The Central RI Chamber responds. During floods we’ve found members pumps and generators. When phone lines went down, we’ve arranged for phones at the Chamber.

When the system bites back, we know who to call. And we’ll make the call. We work with FEMA, RI Emergency Management Agency, U.S. SBA, municipalities, nonprofits, and other members to help bring relief.

Visit www.centralRIchamber.com/brilliant and check out the following.

• Want to know how Martin Luther King got 500,000 people to Washington in August for the ‘I have a Dream Speech?’

successful companies and successful communities.

10 | DECEMBER 2019 | PROVIDENCE BUSINESS NEWS ■ PROFILES OF SUCCESS | www.pbn.com

56 Pine Street 3rd Floor Providence, RI 02903

yes…. opportunity.

in an environment that seems to change daily.

At Mancini Carter, our goal is to be responsive, persistent and efficient, while finding sensible solutions to complex problems.

ADDRESS

of approachable size, wonderful amenities, and

Finding staff; financing; learning how to compete

Neighborhoods you call home.

COMPANY INFORMATION Mancini Carter is located in the heart of downtown Providence and employs the skill set of several attorneys, paralegals and legal assistants who are responsive and dedicated to ensuring that the clients achieve their goals.

and work. That this place is a wonderful blend

Sure, every day you face challenges galore.

so close to everything.

Mancini Carter incorporates the skills of Thomas P. Carter, Michael L. Mineau and Nicholas J. Goodier, who through their careers have gained unique and valuable experience in real estate, business, construction, land use and property tax and assessment law throughout Rhode Island and Massachusetts.

They understand that our clients are not in the litigation business, accordingly, they ensure that each problem is addressed in an efficient manner, with an eye towards a speedy resolution.

Like you, we believe in Rhode Island. We believe in the idea that we can be a great place to live

it’s a great place to live. fields and forests, businesses of all shapes and sizes,

At Mancini Carter, we pride ourselves on our sophisticated yet practical counseling of our clients, with a strong emphasis on prompt response and execution. The attorneys at Mancini Carter have a breadth of experience across all areas of business and real estate, including the handling of complex, commercial litigation from beginning to trial. Mancini Carter has tried multiple specific performance cases, construction matters, easement and land use, and real estate issues.

As do their families, employees and maybe even customers.

Rhode Island going is that, with all our challenges, A beautiful Bay, rolling ocean waves, sandy beaches,

MISSION MISSION

Like you, they live in or near where they work.

what you think. Watch this 13-minute video to learn more.

BUILDING COMMUNITY supports your success both personally and professionally.

Events like the Rocky Point 5K raised over $61,787 for community non-profits.

Movies in the Park has engaged and entertained over 10,000 area residents.

Our annual holiday activities have touched the lives of over 300 children.

COMPANY INFORMATION It’s About Your Business, Your Community, and Your Life.

Partner with a team who gets it...”

Everything we do, we believe in building and strengthening our community. We’re the stable and dependable partner you turn to for help or ideas.

We strengthen our community by providing predictable leadership. Plus you get all the familiar business benefits from networking to continual learning and marketing support.

We’ll also take a stand… make a call… solve a problem… a friend to turn to in tough times. We just happen to be called your chamber of commerce.

• Do your eyes deceive you? Here’s another short video that might just change your mind.

We salute you for doing what you do! We believe in you and your ability to thrive in the years to come. So we’re constantly innovating to be there when you need us - for another 40 years.

After all, it’s about your business, you community, your life.

Partner with a team who gets it….

ADDRESS

3288 Post Road Warwick, RI 02886-7131 WANT TO JOIN? 401.732.1100 CentralRIchamber.com business@centralrichamber.com CentralRIchamber CentralRI

www.pbn.com | PROFILES OF SUCCESS ■ PROVIDENCE BUSINESS NEWS | DECEMBER 2019

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401.343.7000 mancinicarter.com info@mancinicarter.com

8 mancinicarter/ YEAR ESTABLISHED

2017

ManciniCarter

www.pbn.com | PROFILES OF SUCCESS ■ PROVIDENCE BUSINESS NEWS | DECEMBER 2019

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To participate in this year’s edition,contact your Account Manager or Advertising@PBN.com | 401-680-4800 MATERIAL DEADLINE: November 20, 2020 | PUBLICATION DATE: December 18, 2020

28 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

ACCOUNTING/BUSINESS VALUATION & SUCCESSION | FOCUS CONTINUED FROM PAGE 27

ments to their facilities relating to the COVID-19 pandemic, the accounting is also straightforward.

All would be considered reasonable business expenses, according to Anthony Scorpio, a partner at Providence-based Mullen Scorpio Cerilli.

Scorpio, whose firm represents a large number of restaurants, said many have spent substantial amounts of money converting sidewalks or parking lots into dining areas in the pandemic. All of those planters, screenings and other investments are business expenses. “We’re just writing those off,” he said.

But one of the issues that has become complex, he said, in addition to the PPP tax question, is where people are working. If an employee works for a Rhode Island company but has been working from home in another state, such as Connecticut or Massachusetts, should they still be paying income taxes to the state of Rhode Island?

“There is discussion going on about that,” Scorpio said. The individual would get a credit for the taxes paid to Rhode Island from their own state. But the state of Rhode Island would lose that money.

For employees who work from home, they cannot deduct a home office as an expense. “The government hasn’t changed anything on that yet, and I think we’re waiting for guidance,” Scorpio said.

Probably the biggest unknown for accountants is the issue of the taxation of PPP proceeds.

The money wasn’t intended to be taxed when Congress approved the program, according to Joseph A. Mansour Jr., president of Marcovich, Mansour & Capobianco LLC in Lincoln.

The Coronavirus Aid, Relief, and Economic Security Act stated that

‘This is how we’re going to spend the next two months, if not longer.’

ANTHONY SCORPIO, Mullen Scorpio Cerilli partner

the PPP loan recipient would not have taxable income if the loan was forgiven, he said. But a few months later, the IRS issued a notice, 2020-32, which effectively reversed that benefit because it prohibits businesses from deducting expenses such as payroll, rent and utilities.

“Those expenses are not deductible,” Mansour said. And if that stands, many businesses could be on the hook for thousands of dollars in taxes. Although the U.S. Treasury Department has been trying to clarify the issue in another stimulus act, the holdup of a new relief package in the weeks before the general election has left the issue unresolved.

Mansour, whose firm represents about 400 businesses that obtained the PPP loans, said he’s advising clients to hang on to some of the money, if possible, in case they have to pay a tax in April 2021. Many of his clients, he said, are owners of Dunkin’ franchises. “They all received PPP loans,” he said. “This is going to create, if it’s not taken care of … a substantial amount of unintended, taxable income.”

The issue will have to be resolved, said Scorpio, who is waiting until he gets clear direction. It’s been a source of concern for business owners, many of whom are approaching the end of their 24-week window to spend the PPP loan.

“I think that’s a big TBD [to be determined] right now,” with substantial tax implications for business owners, he said.

“The implication is they’re going to pay taxes,” Scorpio said. “They didn’t make any profit on that [PPP] money. They used it to pay their employees. So the individual business owner is going to end up paying taxes on that money and they don’t have the money anymore to pay the taxes with because they spent it all on getting the fulfillment of the loan.”

The other outstanding issue, Scorpio noted, is when the PPP loans are forgiven. Is the IRS going to recognize that in 2020, when the funds were dispersed and used, or in 2021, when many banks may end up processing the loan-forgiveness applications?

“This is how we’re going to spend the next two months, if not longer,” he said. “We’re going to do what we do with any income or expense at the end of the year. Do you want to push it into next year or take it this year?”

The election, and the potential for tax changes in 2021, also weigh on that.

“I think there are going to be more extensions than normal in 2020 until we get some clarity, and what effect all of this is going to have,” Scorpio said. n

Business Succession Planning: your investment in the future.

Business Succession Planning – Long Term Success.

Our Business Succession Group Karen G. DelPonte* | Lynn E. Riley*† Briget L. Mullaney* | E. Colby Cameron* *Also

Admitted in Massachusetts, †Also Admitted in Florida

301 Promenade Street, Providence, Rhode Island 02908 Phone 401.331.5700 | Fax 401.331.5787 | www.cm-law.com

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FOCUS | CHIEF FINANCIAL OFFICERS (ranked by 2019 revenue) FOCUS | CHIEF FINANCIAL OFFICERS (ranked by 2019 revenue) CLOSER LOOK

Company | Website Chief Financial Officer

Address Phone

2019 revenue No. of local employees

Type of business

CVS Health Corp. | cvshealth.com Eva Boratto, executive vice president and chief financial officer

1 CVS Drive Woonsocket, R.I. 02895 (401) 765-1500

$256.8 bil.

8,600

Retail pharmacy and pharmacy benefit chain

2019: 2

General Dynamics Electric Boat | gdeb.com John V. Leonard, chief financial officer and vice president of finance, contracts, strategic planning and applied physical sciences

165 Dillabur Ave. North Kingstown, R.I. 02852 (401) 268-2300

$39.4 bil.

4,000

Submarine construction, design and life cycle maintenance

3 2019: 4

Raytheon IDS | raytheon.com Anthony F. O'Brien, vice president and chief financial officer

1847 West Main Road Portsmouth, R.I. 02871 (401) 842-5438

$36.3 bil.

1,025

Systems and weapons developer and integrator

4

United Natural Foods Inc. | unfi.com John W. Howard, chief financial officer

313 Iron Horse Way Providence, R.I. 02908 (401) 528-8634

$26.5 bil.

776

Distributor of natural, organic and specialty foods

5

Amgen Inc. | amgen.com Peter H. Griffith

40 Technology Way West Greenwich, R.I. 02817 (401) 392-1200

$23.4 bil.

903

Biotechnology manufacturer

6

Fidelity Investments Inc. | fidelity.com Maggie Serravalli

900 Salem St. Smithfield, R.I. 02917 (401) 292-5000

$20.9 bil.

3,100

Financial services

7

Citizens Financial Group Inc. | citizensbank.com John Woods, vice chairman and chief financial officer

1 Citizens Plaza Providence, R.I. 02903 (401) 456-7000

$7.4 bil.

4,900

Financial institution

8

Gilbane Inc. | gilbaneco.com John T. Ruggieri, senior vice president and chief financial officer

7 Jackson Walkway Providence, R.I. 02903 (401) 456-5800

$6.4 bil.

457

Construction and real estate development

9

FM Global | fmglobal.com Kevin S. Ingram, executive vice president and chief financial officer

270 Central Ave. Johnston, R.I. 02919 (401) 275-3000

$6.1 bil.

5,400

Commercial property insurer of multinational organizations

International Game Technology PLC | igt.com Massimiliano Chiara, executive vice president and chief financial officer 1

10 Memorial Blvd.

Providence, R.I. 02903 (401) 392-1000

$4.8 bil.

1,051

Gaming technology and services provider

2019: 14

Sensata Technologies Inc. | sensata.com Paul Vasington, executive vice president and chief financial officer

529 Pleasant St. Attleboro, Mass. 02703 (508) 236-3800

$3.5 bil.

900

Manufacturer of sensors for automotive, aerospace and industrial customers

12 2019: 16

Lifespan Corp. 2 | lifespan.org Mary A. Wakefield, executive vice president and chief financial officer

167 Point St. Providence, R.I. 02903 (401) 444-3500

$2.4 bil.

15,922

Health care system

Blue Cross & Blue Shield of Rhode Island | bcbsri.com Mark Stewart, chief financial officer and executive vice president

500 Exchange St. Providence, R.I. 02903 (401) 459-1000

$1.7 bil.

763

Health insurer

2020 rank

1 2019: 1 2

2019: 7

2019: 5

2019: 6

2019: 8

2019: 9

2019: 10

10

2019: 11

11

13

2019: 17

14

2019: 18

15

2019: 23

16

2019: 22

Neighborhood Health Plan of Rhode Island | nhpri.org Frank Meaney

910 Douglas Pike Smithfield, R.I. 02917 (401) 459-6000

$1.4 bil.

548

Twin River Worldwide Holdings Inc. 3 | twinriverwwholdings.com Steve Capp, executive vice president and chief financial officer

100 Twin River Road Lincoln, R.I. 02865 (401) 723-3200

$919.9 mil.

1,930

Casino hotel management; gaming and entertainment

Ocean State Job Lot | oceanstatejoblot.com John D. Conforti

375 Commerce Park Road North Kingstown, R.I. 02852 (401) 295-2672

$725 mil.

1,367

Retail

17

Carousel Industries of North America Inc. | carouselindustries.com Jason Cherry

659 South County Trail Exeter, R.I. 02822 (800) 401-0760

$560 mil.

430

18

Locke Lord LLP | lockelord.com Barry Honea

2800 Financial Plaza Providence, R.I. 02903 (401) 274-9200

$496.4 mil.

83

Law firm

2019: NL

19

Blount Fine Foods Corp. | blountfinefoods.com Michael Mistrot

630 Currant Road Fall River, Mass. 02720 (774) 888-1300

$432.4 mil.

800

Manufacturing

20 2019: 13

Tiffany & Co. 4 | tiffany.com Mark J. Erceg, executive vice president and chief financial officer

300 Maple Ridge Drive Cumberland, R.I. 02864 (401) 288-0100

$367.5 mil.

540

Luxury jewelry and silverware manufacturer and retailer

2019: NL

21

Cardi Corp. | cardi.com Josh Blais

400 Lincoln Ave. Warwick, R.I. 02888 (401) 739-8300

$250 mil.

550

Contractor specializing in bridge, highway and heavy construction

2019: NL

22

Woodard & Curran | woodardcurran.com David Remick

33 Broad St., Floor 7 Providence, R.I. 02903 (401) 273-1007

$246.3 mil.

56

Engineering, science and operations

2019: NL

23

Windmoeller & Hoelscher Corp. | whcorp.com Javeed Buch, senior vice president and chief financial officer

23 New England Way Lincoln, R.I. 02865 (401) 333-2770

$235 mil.

30

Distributor of parts and service for packaging industries

2019: NL

24

Thielsch Engineering Inc. | thielsch.com Trent D. Theroux

195 Frances Ave. Cranston, R.I. 02910 (401) 467-6454

$185.1 mil.

610

Construction and engineering

25

Embrace Home Loans Inc. | embracehomeloans.com Kevin Spinner

25 Enterprise Center Middletown, R.I. 02842 (401) 846-3100

$142.1 mil.

399

Financial services

2019: NL

2019: NL

1 Massimiliano Chiara replaced Alberto Fornaro as chief financial officer on April 6, 2020.

2 Lifespan Corp. includes6-12, Emma2020 Pendleton Bradley Hospital, BUSINESS Newport Hospital, Rhode| Island Hospital/Hasbro Children's Hospital and The Miriam Hospital.

30 | NOVEMBER | PROVIDENCE NEWS www.pbn.com 3 Twin River will be rebranding as Bally's Corp. on Nov. 9.

4 Tiffany & Co. was acquired by Moet Hennessy - Louis Vuitton, Societe Europeenne, also known as LVMH, on Nov. 25, 2019.

1

Lifespan Corp.

No. of employees: 15,922

2

CVS Health Corp.

No. of employees: 8,600

3

FM Global No. of employees: 5,400

LIST RESEARCHED BY Cassius Shuman NEED A COPY? To purchase a copy of this list, call (401) 273-2201 or visit PBN.com/lists for more information.

UPCOMING LISTS Top Private Companies (Nov. 13); Family-Owned Businesses, Women-Run Businesses (Nov. 20) WANT TO JOIN? For more information about participating in PBN’s Top Lists, or to make additions or corrections, call (401) 680-4884 or write to Shuman@PBN.com.

NL = Not listed last year.

Not-for-profit health maintenance organization offering Medicaid, Medicare-Medicaid and commercial plans

Communication and network technologies, IT services, visual communications and AV integration

2019: NL

Re-ranked by number of employees:

FOOTNOTES j Ma1 Massimiliano Chiara replaced Alberto Fornaro as chief financial officer on April 6, 2020.  Lifespan Corp. includes Emma Pendleton Bradley Hospital, Newport Hospital, Rhode Island Hospital/ Hasbro Children’s Hospital and The Miriam Hospital.  Twin River will be rebranding as Bally’s Corp. on Nov. 9.  Tiffany & Co. was acquired

by Moet Hennessy - Louis Vuitton, Societe Europeenne, also known as LVMH, on Nov. 25, 2019.

INSURANCE I BENEFITS I RETIREMENT I HR

We’re right around YOUR corner.

At Hilb, there isn’t a challenge we haven’t seen or a problem we haven’t solved. That’s because, as we began our expansion throughout New England, we committed to nothing less than recruiting agencies that are the best at what they do in insurance, benefits, retirement and HR. We’re proud to be able to bring their expertise to you - no matter where you are on the map.

For industry expertise and personalized service, contact Joseph Padula, President I Property and Casualty Phone: (800) 678-1700 ext. 2120 Email: jpadula@hilbgroup.com

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www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 31

IT’S PERSONAL Cicilline’s AIDS work honored U.S. REP. DAVID N. CICILLINE, D-R.I., is the recipient of this year’s Hope Harris Memorial Award, which recognizes persons or organizations exemplifying service to the communities that AIDS Project Rhode Island serves and dedication to the fight against HIV/AIDS. The award, which he received at the AIDS Run/ Walk for Life virtual event on Oct. 5, is named after Hope Harris, a former APRI board member. Cicilline has been a longtime advocate for LGBTQ+ civil rights and has fought for better funding of critically needed HIV/AIDS services for decades. The former mayor of Providence has been a member of Congress since 2011.

What are your thoughts about the administration’s ­handling of the COVID-19 pandemic?

The Trump administration has totally failed the American people. More than 200,000 Americans have died and nearly 7.5 million Americans have been infected with this [potentially] deadly virus, including … the president. We are dealing with a serious public health crisis and an economic catastrophe. We need to use all the tools that we can to help struggling American families.

What was your reaction to being selected as the recipient of this year’s Hope Harris Memorial Award?

When I heard the news that I was selected, I was thrilled.

I knew Hope Harris well and she was so dedicated to ending the stigma around HIV/AIDS and raised money to promote awareness and research for HIV/AIDS. She was an early and incredibly important leader in the fight against this deadly virus when many would not get involved. To receive an award named after her is an incredible honor.

What are you working on, and what do you hope to accomplish in the fight for gender equality and LGBTQ civil rights?

Right now, millions of LGBTQ people can still legally be denied access to housing, education, federal funding, public accommodations, credit and the opportunity to serve on a jury. In May of 2019, a bill that I have been working on for nearly five years passed the House of Representatives – the Equality Act. It prohibits these kinds of discriminations for LGBTQ Americans. The bill has been sitting on [Senate Majority Leader] Mitch McConnell’s desk since then. I will continue to fight for this bill until it is the law of the land. n

What inspired you to dedicate your commitment to the fight against HIV/AIDS and other LGBTQ civil rights ­issues?

As a member of the LGBTQ community, I lost many friends to HIV/AIDS and remember the fear experienced by so many in the early days of this crisis. From that moment, I have been engaged in the fight to eradicate this disease. I also saw too often the stigma and discrimination that those suffering with this disease experienced.

I have dedicated my career to fighting to expand civil rights for all Americans. I think we all have the responsibility to improve the lives of others. For me, fighting for research funding and treatment … is the right thing to do.

(Cicilline asks donors to send donations via text to AIDS Project Rhode Island by texting APRI35 to 44321.)

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BY MARY MACDONALD | MacDonald@PBN.com Hezemans, co-owner ofSEE R1 TRAINING Indoor Karting in Lincoln, says PAGE 14 R1 spent about $100,000 MAYOR DONALD R. GREBIEN NEVER upgrading and painting the thought he’d have to close down his city on 100,000-square-foot facility to increase safety measures, Fridays to save money, but in the absence in addition to sanitizing racing of a state budget and the rise in financial helmets and purchasing new uncertainty, it has come to that. “open helmets” that allow riders to wear their own face masks Starting the week of Oct. 19, several hundred public employees started with the helmets while driving working four days a week, with most city services unavailable on Fridays.

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IT’S PERSONAL MACKAY’S MORAL | HARVEY MACKAY

Let enthusiasm lead you ALL GREAT SALESPEOPLE must have enthusiasm. It’s the one critical trait that you cannot teach. You can learn sales skills, product knowledge, how to plan, networking and pretty much everything else.

Enthusiasm is crucial in every profession. Major League Baseball star Pete Rose once was asked which goes first on a baseball player – his eyes, legs or arm. He said: “None of these things. It’s when his enthusiasm goes that he’s through as a player.”

Here are a few examples of enthusiasm worth noting.

Legendary football coach Vince Lombardi said: “If you aren’t fired with enthusiasm [to play for the Green Bay Packers], you will be fired with enthusiasm.”

Kemmons Wilson, founder of Holiday Inn, said, “If you don’t have enthusiasm, you don’t have anything.”

Motivational author Tom Peters said, “Nothing good or great can be done in the absence of enthusiasm.”

Walter Chrysler, the founder of the automotive company that bears his name, said, “The real secret of success is enthusiasm.”

Mark Twain was once asked the secret to his success. He said, “I was born excited.”

Enthusiasm is a commodity more important than all other commodities. It will find solutions where there appear to be none, and it will achieve success when success was thought impossible.

Enthusiastic people never give up.

They understand that the hardest sale they’ll ever make is to themselves. But once they’re convinced they can do it, they get the job done.

Self-confidence is extremely important in almost every aspect of our lives, yet many people don’t believe in themselves as they should, and they find it difficult to become successful.

Confidence enables you to perform to the best of your abilities, without the fear of failure holding you back. It starts with believing in yourself, even when no one else does.

That attitude is absolutely essential. Stay upbeat no matter what happens. A can-do attitude is the mind’s paintbrush. Enthusiasm can color any situation.

What can you do to boost your enthusiasm? It all depends on how much you want to succeed. Take control of your own destiny. Success comes from knowing what you want, not wanting what you know.

It helps to have a little bulldog in you to achieve your dreams. The pioneering pilot Amelia Earhart said, “The most difficult thing is the decision to act. The rest is merely tenacity.”

Find something that makes you happy. If you love what you do, you will work harder. Having a purpose is the best motivation, better than money or fame. To me, happiness is the key to success. Only you can draw the map of the route to your happiness.

Here’s the best part: You can take any detour on your roadmap where your enthusiasm leads you. Therein lies the beauty of living an enthusiastic life, that you can see possibilities beyond your original plan. There are

Enthusiasm is crucial in every profession.

many paths to achieve your ultimate happiness and success. Don’t let your fear of following them get in the way.

Consider the story of a 94-yearold woman in Arizona. Her friends always described her as charming, delightful and always positive. When asked her secret of living, she responded: “It’s my enthusiasm for life.

Because I think positive, I am positive.”

Pausing for a moment, she continued: “Even at 94, I have four boyfriends. I begin each day with Will Power. Then I go for a walk with Arthur Ritis. I usually return home with Charlie Horse, and spend the evening with Ben Gay. Need I say any more?”

If she can have that kind of enthusiasm at 94, there’s no excuse for you not to have it at 24, 44 or 74. The choice is yours: Are you living with enthusiasm?

Mackay’s Moral: The world’s work is done every day by people who could have stayed in bed ... but didn’t. n Harvey Mackay is the author of the New York Times best-seller “Swim With the Sharks Without Being Eaten Alive.” He can be reached through his website, www.harveymackay.com. | SPONSORED CONTENT |

PEOPLE ON THE MOVE ARCHITECTURE Vision 3 Architects would like to congratulate Taylor Messier on being promoted to Job Captain.

Taylor joined Vision 3 Architects as an Architectural Designer in 2018.

Taylor’s role as Job Captain supports all phases of project development from design through construction administration.

Announce new hires, promotions and special accomplishments to the Rhode Island business community.

The STANDARD listing includes 1 photo, 90-100 words of text, clickable links to your website, social media sharing and keywords to optimize search, and is: • published on PBN.com within 24 hours and archived on our site.

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ARCHITECTURE Rebecca Fletcher of Vision 3 Architects has been promoted to Job Captain.

Rebecca joined the firm in 2018 as an Architectural Designer and has been an integral part of the Education/Hospitality Studio. She has supported numerous projects including the most recent St. George’s Memorial Schoolhouse and Newport County YMCA. In addition to education/ hospitality projects she’s worked on a wide variety of other project types for Johnson Controls, Narragansett Bay Commission, Groov-Pin Corporation and Narragansett Bay Insurance.

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www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 33

IT’S PERSONAL TO SAVOR | JESSICA NORRIS GRANATIERO

An altered holiday TAKING A MOMENTARY respite from work, sitting at my home-office desk, eyes closed, memories of Thanksgiving flood my mind. I take some deep breaths, meditation-style, and slowly a mélange of aromas – cranberry, allspice, pumpkin – envelops me, as if I am back again in the small one-level house in which I grew up. I feel it and smile.

These memories slowly relieve the stress that has become omnipresent in some form since the pandemic’s start. I realize, “I am meditating!” Admittedly, this form of mental exercise is not my forte, and I envy those who do it effortlessly.

Growing up, Thanksgiving was a big “tadoo” in our family, even though we were only a quartet – mother, father, older brother and me.

While we didn’t have a lot, we had enough, and this holiday represented laughter and togetherness. It also meant elbowing my brother for space

on the couch, peering straight ahead at the Zenith TV, a mammoth-like, treasured monument in almost every U.S. home, and I was giddy from excitement to see the Macy’s Thanksgiving Day parade with its billowing floats and marchers, clad in vibrantcolored ensembles. This ritual was never missed in our home.

With excitement, I awaited Thanksgiving and the accompanying butterfly fluttering in the stomach, like anticipating a first date. This feeling began a week prior to Thanksgiving, because of both holiday and the annual ritual of holiday shopping the day after for my dad and me. We were very much a part of the American culture that engaged in earlymorning Black Friday activities, fervently hunting for sales. Unbeknownst to me as a child, our annual ritual was part of something bigger, helping retailers move their balance sheets from red to black.

This year’s Thanksgiving, “Black Friday” and five-week holiday season certainly will be different for many who enjoy these shopping adventures that my dad and I did. For safety and economic reasons, more consumers will shop online rather than venturing out. Simultaneously, more retailers will encourage online sales to thwart the pandemic’s already existing negative effects on in-person business.

Like all retail executives, I know analyses of prior years’ performances will give me little guidance this year.

No one knows how consumers are going to spend, or not spend, during this holiday season. My earlier predicted forecasts are irrelevant.

While wine retail sales always have flourished starting a few days prior to Thanksgiving and continuing through New Year’s – a result of dinners and gatherings – I anticipate a difference this year. Still, people will

The pandemic has changed me – personally and professionally – like it has many other people.

come together to cook and invoke beautiful Thanksgiving aromas, such as those I remember, but possibly in smaller form.

Undeniably, the pandemic has changed me – personally and professionally – like it has many other people. Yet, I will try not to allow this virus, aiming to infiltrate every home, ruin our holiday. I will still wake early to bake and initiate inviting aromas in the air, serving as an alarm clock for my daughter and husband; watch this year’s reinvented Macy’s Day parade; “dress up” (even if an “oldie but goodie” that I pull from the closet); set the table with the “better” dishes; and select a special wine. Nevertheless, my family will engage in boisterous talking and laughter, even before the wine is poured!

While safety is the utmost importance, I still embrace the in-person connection with clients and their families, even behind masks, who visit the store pre- and post-Thanksgiving to select their holiday wines.

These too are their annual rituals and pastimes, just like the ones I so loved with my father many years ago. n Jessica Norris Granatiero is the founder of The Savory Grape, a wine, beer and spirits shop in East Greenwich.

GUEST COLUMN | JAY MADDOCK

Shake the pandemic fatigue AS THE PANDEMIC DRAGS ON, following COVID-19 prevention guidelines can feel like more and more of a challenge.

This kind of fatigue is not unique to pandemic precautions. With all kinds of health-related behavior changes – including increasing physical activity, eating healthy and decreasing tobacco use – at least half of people relapse within six months.

Think back to the start of April.

Much of the U.S. was under stay-athome orders.

Coronavirus fears had people either ordering necessities for delivery or rushing through stores, avoiding everyone. When they got home, shoppers wiped down their groceries, vigorously washed hands and maybe even took a shower. People got used to staying home.

Today, there’s still no cure or vaccine, and infection numbers are on the rise. Now is the time to strengthen your resolve and re-devote yourself to prevention measures.

But fewer in the U.S. are reporting the fear that triggered all those germavoiding actions in the spring. Why? There are several psychological

reasons for why fatigue sets in. One explanation for falling off the prevention bandwagon comes down to two predictors of health behaviors. n Perceived susceptibility – how likely do you think you are to get a disease? n Perceived severity – if you do get it, how bad do you think it will it be?

There have been millions of COVID-19 cases in the U.S. But all those people still add up to less than 3% of the population. Depending where you live, you may know only a few people who have had COVID-19. This can reduce perceived susceptibility.

As doctors learned more about treatment methods, the death rate has dropped. In May, 6% of diagnosed cases proved fatal, while less than 3% are today.

People look at the trends and let themselves be lulled into believing they’re less susceptible or that the disease’s severity isn’t that bad. One might reason, it’s been eight months and I haven’t gotten sick.

While social norms can be communicated in many ways, one of the main paths is through observational learning.

34 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

When state governments decide to open bars, restaurants, gyms and movie theaters, you might read it as a signal that these places are now “safe” to visit. Likewise, when you see people socializing without masks and skipping the physical distancing, it looks “normal” and could make you more likely to forgo them yourself.

Distancing efforts have increased feelings of social isolation and loneliness for many people. And that isolation can lead to a variety of poor health outcomes. People were able to avoid get-togethers in the spring. But it can be really hard to stick long-term with a behavior that can feel like it’s all downside and no upside.

The trick is to balance physical distancing with social connectedness.

Researchers know that reminiscing or having nostalgia about drinking or smoking is one of the major risk factors for relapse.

A drink after work with a group of friends, a game of pickup basketball or a live concert are things people miss – and it’s hard not to dwell on the things you’re not getting to do. But thinking about them can encourage you to engage in risky behaviors.

Case counts are rising. People need to double down on a level of precaution while not adding to their social isolation.

Some recommendations must be strictly followed. Hand-washing increased dramatically after the start of the pandemic. Hopefully, this will remain high.

Masks are also important to help limit the number of new cases.

That leaves physical distancing, which is probably the most difficult.

Public health experts often advocate a harm-reduction approach for behaviors where abstinence is not feasible. It’s a way to minimize risk.

Crowds and large gatherings still need to be avoided. If video chats have grown stale, hosting your own small get-togethers is a possibility. Be aware, though, that socializing in a group comes with risks.

Pandemic fatigue is real. Understanding it better might help you strengthen your resolve. n Jay Maddock is a professor of public health at Texas A&M University.

Distributed by The Associated Press.

The PBN Interview Issue

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We’ll cover Health Care, Workforce, Financial Services, Entrepreneurship, Energy and the Environment, Manufacturing, Real Estate, Hospitality and Government.

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www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 35

OPINION EDITORIALS

Ramp up R.I. pandemic aid spending where it’s needed most

IN A RUSH: Gov. Gina M. Raimondo’s administration has less than two months to disperse $900 million in pandemic-related federal aid.

PBN FILE PHOTO/ MICHAEL SALERNO

It’s usually wise not to quickly spend a windfall, unless there’s a use-it-or-lose-it deadline attached to it. That’s the situation the state finds itself in with approximately $900 million in pandemic-related federal aid that must be spent by Dec. 30.

Gov. Gina M. Raimondo’s administration had good intentions in not rushing to dole out $1.25 billion the state received in March; hoping to use some to plug budget holes.

But, as this week’s cover story reports, the clock is now ticking on what remains unspent, with criticism building of the state’s go-slow approach.

The administration is hoping for an extension of the deadline but says if it doesn’t come, it will spend the remaining $900 million. Great, but on what?

“All options … are under consideration,” said R.I. Department of Administration Director Brett Smiley.

With so many needs, it would be hard for the state not to put the money to good use. But Republicans are right to be concerned that, despite holding on to the aid for months, the state will still end up rushing to spend it without proper vetting, just to meet the now looming deadline.

Michael DiBiase, Rhode Island Public Expenditure Council CEO and president, suggested earlier this year that some of the money be used to replenish the state’s depleted unemployment trust fund. That could still happen, but, to this point, he says, those hardest hit by the economic crisis – individuals and businesses – haven’t gotten as much of the pie as they’ve deserved.

That’s a glaring problem the Raimondo administration can’t move too quickly to fix. n

Embrace the change in House Change is coming to the General Assembly and our advice to all of House Speaker Nicholas A. Mattiello’s supporters and detractors is simple: Embrace it.

The Democratic speaker’s seven-year run in the powerful post started with the promise of a pro-business voice who wanted to make “jobs and the economy” his top priorities. As the years passed, hanging on to the power he’d amassed – along with his seat in a competitive Cranston district – seemed to become the focus.

While Mr. Mattiello no doubt looked out for the interests of his many Cranston supporters to the end, his increasingly narrow budget focus often left him at odds with Democratic Gov. Gina M. Raimondo’s economic vision and the needs of the entire state.

Now that Mr. Mattiello has lost his House seat to Republican Barbara Ann Fenton-Fung, a new House leadership team will get the chance to forge a better working relationship with the governor’s office.

Its leaders must also show they can keep the interests of the entire state ahead of parochial concerns. n

Read even MORE business news on PBN.com

POLL CENTRAL EXECUTIVE POLL

Seizing opportunity Has your company found unexpected opportunities amid the current economic landscape?

How beneficial have these opportunities been for your business? (Select any that apply)

Yes: 78%

They have improved operations: 45%

No: 22%

They have been transformative: 33%

What kind of opportunities have you discovered? (Select any that apply)

They have made some impact: 22% We have not seen any benefits: 11%

We have found new clients, and customers: 45%

Not applicable: 11%

We have learned methods for evolving our business: 22%

Do you expect the new opportunities to last beyond the COVID-19 pandemic?

We have not found any opportunities: 22%

Yes: 75%

We have uncovered new sources, products, etc.: 11%

No: 25%

We have forged unlikely partnerships: 0%

The Providence Business News Executive Poll is a weekly survey of 70 business leaders throughout the state, representing small and large companies in a variety of industries.

PBN.COM POLL

Do you plan to spend Thanksgiving with only the people you live with, as Gov. Gina M. Raimondo suggested, or with a larger group?

OCT. 23-29 Only with the people I live with due to the COVID-19 risk

33%

I plan to spend Thanksgiving as usual but we’ll follow social distancing guidelines

7%

With a slightly larger group that includes only relatives or close friends

50%

I don’t know

10%

THIS WEEK’S POLL: Do you feel good about the

direction of the state and country after the Nov. 3 elections?

• Yes, the positives outweigh the negatives • Yes, though the biggest challenge, COVID-19, remains unresolved • No, though I’m more hopeful about Rhode Island’s immediate future • No, I didn’t see much good happen locally or nationally • I don’t know To vote, go to PBN.com and follow the link on the home page

36 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

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OPINION OPINION

Threat to child care sector is far-reaching

DR. PAMELA HIGH

ANNA AIZER GUEST COLUMN

We are facing a child care crisis in the U.S. and in Rhode Island that is poised to exacerbate the health care and economic crises now unfolding as a result of the COVID-19 pandemic. A recent Washington University national survey found that 24% of families with children lost a job or income during the pandemic due to a lack of suitable child care, with these impacts concentrated in Hispanic households, low-income households, selfemployed households and households with very young children.

The pandemic has created a near perfect storm that is threatening our nation’s child care infrastructure. Parents are worried about health risks as they struggle to find and pay for child care that is safe and promotes children’s learning and development. Child care programs are worried about health risks to their staff, children and families as they struggle to recruit and retain qualified early childhood educators. Due to inadequate funding, the wages of child care educators (on average, just $12 per hour in Rhode Island) are among the lowest in our state.

Many programs are now struggling to remain open with higher costs associated with the increased staffing needed to maintain small, stable groups of children and adults, purchasing personal protective equipment, implementing enhanced cleaning protocols,

and providing extended paid sick time for staff during quarantine periods. Due to these increased costs, the Center for American Progress has estimated the pandemic could lead to the permanent loss of half of the already inadequate child care supply in the U.S. We cannot allow this to happen.

Child care is essential to working families, to the economic future of working women and to our nation’s economic recovery. A child care sector that is thriving, not just surviving, requires highly qualified and wellcompensated educators who have paid sick time and comprehensive health insurance.

High-quality child care is needed to promote children’s development and learning and address achievement gaps that often appear in early childhood and only widen over time.

Rhode Island has carefully developed a child care reopening plan aimed at maximizing safety and access. However, the costs of this plan will stress this already fragile sector. Gov. Gina M. Raimondo and the R.I. Department of Human Services have recognized this looming crisis and responded by temporarily increasing child care provider reimbursement rates, paying provider subsidies based on enrollment and establishing a $5 million Child Care Relief Fund to offset facility and occupancy costs associated with shutdowns. These have been successful strat-

Child care is essential … to our nation’s economic recovery.

egies, but this support will soon expire, well before the pandemic ends.

To ensure that our child care sector survives to support Rhode Island’s working families, these rate increases and payment practices must be made permanent. The Child Care Relief Fund should be expanded to help more providers with staffing costs, including programs that serve middle-income families not eligible for assistance but unable to pay the full cost of quality care. In addition, we should implement recommendations from Rhode Island’s Infant/Toddler Educator Task Force, that the state offer a wage enhancement to attract and retain qualified early educators in child care programs.

While Rhode Island is facing a difficult budget environment, any cuts to state child care funding would be shortsighted, threatening the supply of child care slots at precisely the time they are needed most.

At the federal level, Congress must act to pass the Child Care Is Essential Act, a $50 billion infusion of aid to stabilize the child care industry that would bring over $100 million to Rhode Island for this essential work.

There will be no robust recovery without a strong system of child care. That is why now is the time for our state and Congressional leaders to support working families and young children by investing in our nation’s critical child care infrastructure. n Dr. Pamela High is a fellow of the American Academy of Pediatrics and a professor of pediatrics at the Warren Alpert Medical School of Brown University. Anna Aizer is department chair and professor of economics at Brown.

Financial system imperiled by climate change JEFFREY DUKES GUEST COLUMN

Burnt orange daytime skies signal that the consequences of climate change are already here. But while we tend to focus on the death and destruction resulting from the growing frequency and severity of wildfires and other disasters, we often pay less heed to the ways their costs ricochet through the financial system.

The wildfires raging in the West illustrate the problem. Their damage has spooked insurance companies, which have raised rates, dropped coverage and walked away from markets, depressing property values.

This has forced states such as California to step in and offer more coverage. Beyond putting taxpayers on the hook, it could also lead to municipal bankruptcies, large bondholder losses and financial crises.

I contributed to a recent report that examined what climate change means for the U.S. financial system.

The subcommittee I served on was formed last November by the Commodity Futures Trading Commission, the government agency that regulates complex financial instruments known as derivatives.

Our group included representatives from oil companies, agribusiness, banks, investment firms and environmental organizations, as well as a few academics.

We were told to broadly assess the implications of climate change for the financial system and provide recommendations to the government. And we did, writing a 166-page

report with dozens of recommendations, some of them potentially controversial.

Remarkably, this diverse group unanimously voted to adopt the report.

Our key finding is this: Climate change poses a threat that permeates the U.S. financial system. And so the government needs to make climate-related risk more visible and prepare the financial system for disruptions.

Two types of risks are associated with climate change: physical and transition.

Physical risk has dominated the news lately in coverage of wildfires and storms.

Just as smoke from the fires in the West has blown across much of the United States, the impacts of such disasters can drift through the U.S. financial system with cascading consequences.

Transition risk is more about the costs associated with our responses to climate change, such as sudden shifts in policy or in people’s preferences and behaviors.

If governments took sudden, dramatic action to reduce the use of fossil fuels, through a high price on carbon or a stronger mandate, the values of the companies that find, extract, process and deliver those fuels could plummet. The companies susceptible to rapid devaluations as a consequence of government actions thus have high transition risk, which should reduce their value.

However, for investors to take physical and transition risks into account, these risks have to be quantified and disclosed.

A first step, and the report’s most important recommendation, is that legislators should put a price on carbon emissions. The government subsidizes the cost of fossil fuels through tax breaks and other mechanisms.

Incorporating the full cost of climate disruption into the price of these fuels would help redirect huge sums of money into climatefriendly technologies and industries.

But more needs to be done to help the financial system see and react to a variety of changing risks.

The government can help financial companies do this by specifying how they should measure and report their financial risks from climate change. The government can also require publicly traded companies to identify and report climate risk using transparent measurement techniques, so that investors trust the numbers, which need to be comparable across institutions and sectors so people can use them in decision-making.

This will lower the risk of a sudden market crash, and clear, comparable risk information will discourage investment in climate-disrupting activities and motivate economic actors to incentivize further ­solutions. n Jeffrey Dukes is professor of forestry, natural resources and biological sciences at Purdue University and director of the Purdue Climate Change Research Center. Distributed by The Associated Press.

www.pbn.com | PROVIDENCE BUSINESS NEWS | NOVEMBER 6-12, 2020 | 37

ONE LAST THING Get ready for what’s next

DURING

the pandemic, the manufacturing community has proven again that it is a key resource for driving growth and innovation in our economy.

Some wowed us with quick turnarounds to produce personal protective equipment. Others keep essentials such as bread flowing to store shelves.

Here are some tips for manufacturers and all businesses: n Communicate: As leaders, it is important for us to be

Kathie Mahoney Polaris MEP center director KATHIE MAHONEY in September was named center director of the Polaris Manufacturing Extension Partnership, a nonprofit under the auspices of the University of Rhode Island Research Foundation. She previously served in a similar role for MassMEP.

present for our employees. We are all going through this together. As much as employees look to leaders for direction and guidance, they also are looking for compassion and confidence that you are navigating the company into the future. n Be flexible: Recognize we are all experiencing a new way

of life that may include being parents, at-home teacher’s aides and employees at any point during a given day. Leaders should try to understand the stress of the unknown and support workers struggling to adapt.

With your business, ask yourself what could be next. How can you use this time to possibly pivot your company or find a new market opportunity? n Be proactive: There is a manufacturing model for

continuous improvement called Plan-Do-Check-Act. COVID-19 showed that many businesses weren’t really planning. They just did what they always had. There is no time like the present to plan for the future.

Look ahead proactively, respond and act with intention rather than simply reacting.

Leaders who do this will be able to build confidence and ensure growth for employees and the company. n PBN PHOTO/MICHAEL SALERNO

38 | NOVEMBER 6-12, 2020 | PROVIDENCE BUSINESS NEWS | www.pbn.com

SPONSORED CONTENT BY COX BUSINESS

Six Steps to Successful Cloud Migration

C

OVID-19 has upended many facets of daily life, not the least of which has been a wide scale reimagining of how people work. Even as organizations cautiously reopen offices, new health and building guidelines combined with a realization that employees can be productive anywhere – as long as they have the right tools – has encouraged companies of all sizes to rethink the viability and benefits of work-from-home arrangements.

Yet, empowering remote workers requires more than just a laptop and a Wi-Fi connection. That’s why cloud computing has emerged as the “go to” solution for companies planning a new combination of off- and on-site working options.

Cloud solutions allow organizations to support employees, regardless of their physical location, by providing remote workers with secure access to the same information and applications available in the office via virtual desktop environments. And, businesses that partner with the right cloud services provider can find significant savings through the reduction of spending on computer equipment, IT resources and software.

Although moving to a cloud-based solution feels like a daunting task, it’s relatively simple when broken down. Here are six steps to a successful cloud migration.

1. TAKE STOCK OF WHAT YOU HAVE. Every company is different, and when it comes to moving data to the cloud – like so many other strategic business decisions – there’s no one-size-fits-all solution. So, before jumping into specific plans for how to do it, take some time to properly assess why you need to do it in the first place.

That means looking at what parts of your business stand to gain the most by utilizing the cloud. Start by evaluating what information you have, how it’s accessed and where it’s stored. The usual suspects for migrating to the cloud include marketing (email lists, segmentation, targeted offers); HR (payroll, benefits); and finance (invoicing, finance and customer service interactions), but there are many more. Taking stock of your business processes and data will help identify the best cloud candidates in your portfolio.

2. NARROW YOUR FOCUS. Performing a strengths, weaknesses, opportunities and threats (a.k.a. SWOT) analysis is one of the most effective and organized ways to understand where you need to improve and what migrating to the cloud can do for your business. It also will help you narrow your focus and identify which applications to migrate. Now, you should have a good idea of why you’re moving to the cloud, so it’s just a question of priorities.

3. LOOK AT THE NUMBERS. Once you have your priorities, the obvious course of action is to determine the cost. By now, you know what you want to do and how you stand to benefit, so it’s time to gather the real hard numbers of what it will cost to migrate key business processes to the cloud.

4. CHOOSE THE RIGHT CLOUD PARTNER. Choosing the right cloud partner comes down to a combination of your needs and your budget. You want to find a company that has experience working in a similar area or industry and understands the needs and nuances of your business. Cox Business Cloud Solutions, powered by RapidScale technology, for example, is one such company and assists clients with a comprehensive cloud roadmap that makes migration simple.

5. PLAN YOUR MIGRATION. Your No. 1 priority should be to minimize disruption time for your team. Take a close look at your operations, therefore, and figure out how to best time the transition.

Establish the order of migration and set some deadlines and metrics to define success.

6. MONITOR HOW IT’S GOING. As you make your transition to the cloud, make sure you’re actively monitoring how it’s going.

There are a lot of reasons that cloud migration makes sense but moving forward ultimately requires developing a strategic m i g ra t i o n p l a n t h a t f i t s yo u r u n i q u e business needs.

The original article appeared on Cox blue.

For more information please go to www.coxblue.com

To learn more about Cloud Migration visit: www.cox.com/business/cloud-services.html

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