Helpful Tip of the Day:
ABC Virginia would like to remind members to register for today's webinar at 3PM EDT hosted by Maury Baskin, Littler Mendelson P.C., on paid federal leave, the CARES Act, and the impact of the COVID-19 virus impact on construction. Registration for the webinar can be found here. Also, continue to view our COVID-19 Updates page for more information on the virus and ABC action.
You can also view ABC National's coronavirus page here: https://abc.org/coronavirus
Update on PPP:
As of last night, nearly $100 billion in PPP Loans has already been committed, and in anticipation that the $349 billion authorized under the CARES Act will be fully utilized, the Administration has been working with Congress to ensure that additional funds are allocated to the program as soon as possible.
ABC Action on PPP:
ABC sent the attached letter to Congressional leadership including requests that the program expands to 501(c)(6) organizations, like our local chapters, and extend the eight-week payroll coverage for PPP loans and modify the formula for non-payroll expenses so that more construction businesses have the full resources needed during this national health crisis.
What Federal Officials’ Are Saying about Additional funding for PPP:
In a letter to Vice President Pence, the Acting Director of the Office of Management and Budget requested $251 billion in additional funding for PPP Loans.
Senate Majority Leader Mitch McConnell also issued a statement here in support of the additional funding and also pushed for the Senate to approve funding as early as Thursday by unanimous consent or voice vote when the upper chamber is in a pro forma session.
House Republican Leader McCarthy also issued a statement of support for the action here, while Speaker Pelosi and Senate Minority Leader Schumer’s submitted a counteroffer is here calling for:
- $125 billion of the $251 for PPP loans channeled through community-based financial institutions that serve farmers, family, women, minority and veteran-owned small businesses and nonprofits in rural, tribal, suburban and urban communities across our country;
- $100 billion for hospitals, community health centers and health systems, including production and distribution of national rapid testing and Personal Protective Equipment (PPE);
- $150 billion for state and local governments; and
- 15 percent increase to the maximum Supplemental Nutrition Assistance Program benefit.
Main Street Lending Program Update:
On CNBC today, U.S. Treasury Secretary Steve Mnuchin said the Treasury and the Federal Reserve hope to provide more details this week on an emergency lending facility directed toward medium-sized businesses, which have not yet benefited from the $2 trillion economic rescue package signed into law last month. Fed Chair Jerome Powell is set to speak Thursday at a virtual event hosted by the Brookings Institution, where he could provide more information on the Main Street facility.
In the CARES Act, Congress directed the Fed to create the “Main Street lending program” for companies with more than 500 employees that are disqualified from small business loans and too small for federal loans reserved for larger companies. ABC will continue to monitor any guidance and progress made on this program to inform members.
PPP and Paid Leave FAQs:
A reminder that the SBA and Treasury released new FAQs and guidance on the Paycheck Protection Program and also view the attached guidance from ABC on Coronavirus-related paid leave programs.
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