CHAMBER ADVOCACY: FEDERAL RELIEF #4 COMING At the time of this piece, early in the week of July 20, 2020, the U.S. Senate and U.S. House have convened in Washington, D.C. with hopes of passing a fourth federal relief bill in coming days. Congress typically takes a break, or “recess,” as they like to call it, every August, and elected officials return to their states and districts at that time to update citizens on the federal work product. Therefore, we greatly anticipate some form of legislation will make its way out of the halls of Congress in the next 10 business days, and be on its way to the President’s desk for signature. Both parties will signal great success, and we will be off and running with fall re-election campaigns.
To date, more than 81,000 PPP loans have been processed in Arizona totaling more than $8.624 billion in loan monies disbursed to businesses. Additionally, more than 900,000 individual applications have been filed for unemployment compensation since mid-March totaling $6.5 billion in unemployment compensation paid out to unemployed Arizonans.
Important for Chamber Members, the Greater Flagstaff Chamber of Commerce has been lobbying for key elements to be included in the next federal relief legislation. While there is no guarantee we will get these items across the finish line, most have bipartisan support. We will keep you posted on the outcome. Two of the Greater Flagstaff Chamber’s key concerns to be addressed in any forthcoming federal legislation include Liability Protection Against Unwarranted Lawsuits and Support for Small & Midsize Employers. Liability Protection Against Unwarranted Lawsuits As if the impacts of COVID19 were not hurtful enough to businesses, non-profits, educational institutions, health care providers, and many others, all of these now need “safe harbor” from unwarranted COVID19 related lawsuits, when making good-faith efforts to follow applicable public health guidelines. Safe harbor legislation will ensure bad actors can be held accountable, while at the same time protecting those working to follow public health guidance. Support for Small & Midsize Employers Employers across the country continue to struggle with the economic fallout caused by the coronavirus. The impact, however, is not the same across industries. As of June, some sectors of the economy have essentially restored all the jobs lost since February. Other sectors – particularly those most impacted by closures and social distancing requirements where remote work is not possible – have faced catastrophic revenue and job loss. As part of the CARES Act, Congress appropriately provided broad-based support for employers through the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, the Main Street Lending Facilities, the Employee Retention Tax Credit, and other tax provisions. At this time, it is appropriate for Congress to take a more targeted approach: closing the gaps that existed in the CARES Act programs and providing additional relief for those businesses that cannot return to more normal operations as a result of the social distancing requirements necessary to prevent the spread of COVID-19. Specifically, the Chamber urges Congress to consider the following proposals: Closing the CARES Act Gaps: • While the PPP was intended to assist all small business employers, including nonprofits, non-profits who are not organized as 501(c)(3) organizations have been excluded from the program. Congress should extend the deadline for applying for PPP funds through the end of the year and make all non-profit employers eligible to apply for a loan. • Congress should also make the PPP loan forgiveness process easier for the smallest small businesses by automatically forgiving loans under $150,000 or $250,000. • The CARES Act prohibited an employer from receiving both a PPP loan and an employee retention tax credit. While noemployer should be able to receive a PPP loan and a tax credit for the same expense, allowing PPP borrowers to access employee retention tax credits after exhausting their PPP loans will help small businesses who continue to face (cont.)
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7000ft | JULY 2020 | VOL 6, ISSUE 7 | GREATER FLAGSTAFF CHAMBER OF COMMERCE
