WASHINGTON Update
Tom Cosgrove Executive Vice President for Public Affairs
FEDERAL RESPONSE TO COVID-19 – MORE TO COME?
In response to the COVID-19 pandemic,
called the Paycheck Protection Program
This issue was addressed in the $3 trillion
Congress has passed four major pieces of
(PPP). Most employers with fewer than 500
Health and Economic Recovery Omnibus
legislation providing trillions of dollars
employees were eligible for low interest
Emergency Solutions (HEROES) Act passed by
of support to individuals, businesses and
loans equal to 2.5 times monthly payroll.
the House of Representatives which includes
state governments. As states reopen, the
These loans are forgivable if spent on
$875 billion for state and local governments.
question is whether Congress will provide
qualified expenses, including 60% spent
Unlike the other four laws, the HEROES
additional funding for recovery, and if so,
on payroll, though the SBA is still finalizing
Act has not been a bipartisan effort and the
what it will include.
some of the rules for forgiveness.
Republican-led Senate has indicated it would
Following the passage of an $8.3 billion
work on a more narrowly crafted bill.
measure with funding for public health,
16, Congress passed the PPP Enhancement
medical supplies and vaccine development,
Act to provide an additional $310 billion
are advocating for additional funds for
the Families First Coronavirus Response
for PPP as well as additional funding for
agricultural producers, indicating that the
Act (FFCRA) was signed into law on March
the SBA’s Economic Injury Disaster Loans
CFAP payments are not sufficient, especially
18. The primary provisions related to most
(EIDL) and emergency grants. The bill made
for certain producers such as apple growers
employers with 50 to 500 employees,
ag producers eligible for the EIDL and also
who will have difficulty qualifying. The
providing up to 10 days of expanded paid
provided $100 billion in support for hospitals
HEROES Act contained several agricultural
sick leave and family and medical leave.
and testing.
provisions including additional support for
The largest and most comprehensive
USDA also received funding from the
In addition, many farm organizations
livestock, dairy and specialty crop producers
COVID-19 relief legislation thus far has been
CARES Act and on April 17 announced
as well as funding for local farmers’ markets.
the Coronavirus Aid, Relief and Economic
the details for the $19 billion Coronavirus
It is unclear if the Senate is considering any
Security (CARES) Act signed into law
Food Assistance Program (CFAP), including
of these specific measures.
on March 27. This $2.2 trillion package
$16 billion in payments to producers and
Certainly, the level of economic
is wide ranging, including economic
$3 billion for direct food assistance. USDA
assistance that Congress has provided is
impact payments to taxpayers, enhanced
began taking applications for the CFAP direct
unprecedented. By the time this issue of
unemployment benefits, individual and
payments on May 26.
Financial Partner arrives, the trillion-dollar
business tax relief, support for the health
Additionally, the CARES Act provided
question may already be answered as to
care system, an economic stabilization fund
$150 billion to states for COVID-19 expenses,
whether Congress will provide additional
for major industries like the airlines, and
but many state and local governments in
funding and if it will include support for
funding for state governments.
Farm Credit East’s territory are facing major
state and local governments or additional
budget deficits with increased COVID-19
assistance for agricultural producers.
A key piece of the CARES Act was the
16
After initial PPP funding ran out on April
$349 billion Small Business Administration
costs and revenue shortfalls due to the
(SBA) forgivable loan guarantee program
economic shutdown.
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