COVID-19 Relief Update and PPP Resources
As the COVID-19 pandemic continues to impact businesses of all types across the country, BSCAI would like to update members on the status of COVID relief negotiations, including the latest information on the Paycheck Protection Program (PPP) and resources for loan forgiveness.
The PPP, which was created by Congress last March and provides forgivable loans to small businesses, expired on August 8 and has yet to be renewed. Both the House of Representatives and Senate have introduced bills over the last several months to restart the PPP but no legislation has cleared Congress to date. With COVID cases increasing across the U.S. this fall and some states implementing another round of business closures, there is a heightened sense of urgency on Capitol Hill to reauthorize the PPP and other Small Business Administration (SBA) relief programs.
Last Tuesday, a group of bipartisan members in the Senate and House released a new $900 billion COVID relief framework which would provide $288 billion for the PPP and Economic Injury Disaster Loan (EIDL) program. The proposal also includes employer liability protections and $300 per week in supplemental unemployment insurance for four months. This framework has not yet been drafted into legislative text but there is growing optimism in both parties that this proposal provides a good starting point for a final agreement.
In addition to advocating for more PPP funding and employer liability protections, BSCAI is part of an industry coalition that is pushing Congress to include the Healthy Workplaces Tax Credit Act (S. 4214/H.R. 7615) in the final COVID relief agreement. This legislation would help businesses continue to safely reopen through a refundable tax credit against payroll taxes for 50 percent of the costs incurred by a business for increased testing, personal protective equipment (PPE), disinfecting, extra cleaning and reconfiguring work spaces to adhere to social distancing guidelines.
Below, BSCAI members will find a comprehensive list of resources on how to apply for loan forgiveness if your business participated in the PPP. For any questions, please contact Alex McIntyre at firstname.lastname@example.org.
PPP Loan Forgiveness Instructions and FAQs:
PPP Loan Forgiveness Application – All Borrowers
Eligibility: This application is available for use by all PPP borrowers.
PPP Loan Forgiveness Application – EZ Form
Eligibility: This application is available for use by borrowers which: are self-employed and have no employees; or did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; or experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
PPP Loan Forgiveness Application – Simpler Form
Eligibility: This application is available for use by PPP borrowers that received a loan of $50,000 or less.
CDC Shortens COVID-19 Quarantine Recommendations
Last Wednesday, the Centers for Disease Control and Prevention (CDC) published revised guidelines shortening the recommended 14 day quarantine period after a person has been exposed to COVID-19. The CDC now says that potential exposure warrants a quarantine of 10 days with no symptoms and 7 days if the individual has tested negative.
SBA Still Accepting Applications for Economic Injury Disaster Loan Program
The Small Business Administration (SBA) recently sent out a reminder that if you are a small business, nonprofit organization of any size, or a U.S. agricultural business with 500 or fewer employees that have suffered substantial economic injury as a result of the Coronavirus (COVID-19) pandemic, you can still apply for the COVID-19 Economic Injury Disaster Loan (EIDL). Full details on the loan application process can be found here.
Biden Selects Key Cabinet Nominees
In the last few weeks, President-elect Joe Biden has selected nominees for key cabinet positions in his incoming administration. Below you will find a list of nominees and brief biographies for economic and domestic policy posts.
Treasury Secretary: Janet Yellen
Yellen served as chair of the Federal Reserve Board from 2014-2018. Previously, she served as vice-chair of the Fed and president and CEO of the Federal Reserve Bank of San Francisco. She also served as the chair of the White House Council of Economic Advisors in the Clinton administration.
Office of Management and Budget Director: Neera Tanden
Tanden is currently the president and CEO of the Center for American Progress. She previously served as senior adviser for health reform at the Department of Health and Human Services in the Obama administration.
National Economic Council Director: Brian Deese
Deese is currently a managing director at BlackRock, a global investment and financial management firm. Previously, he served as deputy director of the Office of Management and Budget and senior advisor to President Barack Obama.
Health and Human Services Secretary: Xavier Becerra
Becerra is currently the Attorney General of California. Previously, he served in the U.S. House of Representatives from 1993-2017.
Secretary of Homeland Security: Alejandro Mayorkas
Mayorkas served as the director of the U.S. Citizenship and Immigration Services (USCIS) and deputy secretary of the Department of Homeland Security in the Obama administration.