Tim Phelan
President, Connecticut Retail Merchants Association
Age: 57
Industry experience: 25 years

A familiar face in state government circles for decades, Tim Phelan leads Connecticut’s largest industry association representing retailers as it confronts the effects of the COVID-19 pandemic. A former official at the Department of Motor Vehicles and state Department of Environmental Protection, Phelan joined the New Haven-based Connecticut Retail Merchants Association in 1995. The group represents more than 1,000 retailers, ranging from national chains to independent Main Street retailers and sole proprietorships.

Q: What are members asking the association regarding financial strategies following bans on non-essential businesses?
A: Initially, it was definitely questioning what was going to happen and what was the governor’s plan. Were they going to shut down the state? What businesses would remain open? What’s an essential versus a non-essential business? And what could those non-essential retailers do? We have a good relationship with the governor’s office and state agencies, and they’ve given retailers pretty good leeway to work with. If you’re a non-essential retailer, you don’t have to close your doors completely. You can do curbside pickup. Restaurants can add beer and wine as part of takeout as long as it’s sealed. This is a really painful time for all retailers, so anything like curbside pickup and delivery are helpful. Then we started shifting into the stimulus and recovery: what are the SBA and PPP programs looking like?

Q: Are landlords willing to work with retailers on rent payment flexibility?
A: It’s just really hitting now at the first of the month, and I’ve heard a mixed bag. Some landlords have been accommodating, and others have not. It’s an issue, particularly for smaller independent retailers, that they need relief. That’s why this new PPP program which includes the ability to get some cash to offset the cost of rent is important. We also represent mall operators as well, and they are anticipating that this could be tough for tenants, and are willing to work with tenants in terms of rent deferrals.

Q: What seems to be the best strategy for retailers’ use of the SBA loan program proceeds?
A: We’ve been in conversations with the Connecticut Bankers Association for the last few days on this. The guidelines on that are still changing, but you’re going to get reimbursed for payroll and rent and you just have to show where the money you’re getting will go. The advice we’re getting to tell members is: use your local lenders, whoever you’re doing your banking with now, and check with them first. They’re most familiar with you and probably can help you the easiest. And if that doesn’t work, there’s a listing on the SBA website of the lenders, or they can call or email my office and we’ll help them out. The application looks pretty simple and straightforward. It’s just a matter of plugging in the right numbers and putting in the proper documentation.

Q: Prior to the COVID-19 outbreak, what were the association’s top priorities for 2020?
A: The issues that were emerging were around privacy. It’s a big issue with the California Consumer Privacy Act, which was based upon some European models, and that was spreading to other states. We were dealing with that in Connecticut and that was taking up a large part of our time. The legislature’s finance committee hadn’t even gotten started yet but if that had continued, we would have been looking at a sales tax reduction and real-time sales tax remittances and collection.

Q: What else is on your radar for issues that will begin to affect members in the next few weeks?
A: We asked our members the other day and there’s two things we’re starting to look at: a possible ban on non-essential items sold in essential stores. They’re hoping that the governor’s office doesn’t move in that direction. And there’s been a little bit of conversation about when we have to reopen stores and what it’s going to look like. The next few weeks will be really tough but hopefully is we can do practices such as social distancing and flatten the curve, we can start to get back to business. Once we make that turn, we have to think about what a retail store is going to look like when they reopen.

Phelan’s Five Favorite Summer Activities:

• Outdoor concerts
• Going to the beach
• Golfing
• Outdoor breweries/vineyards
• Landscaping/gardening