An Update from NAW Government Relations Team - 5.18
Latest on the Main Street Lending Program
There is still no guidance from Treasury or the Fed on when the MSLP facility will be operational.
The CARES Act established a 5-person Congressional Commission to oversee the implementation of the law’s lending programs, requiring the Commission to report every 30 days. While a chairman has yet to be named, the Commission’s four appointed members released the first 30-day report today. The report provides a very useful summary of the lending programs, and poses dozens of questions about the programs, including when they will be operational. Senator Pat Toomey (R-PA) is a member of both the Oversight Commission and the Senate Banking Committee, so it is likely that these questions will be posed to both Secretary Mnuchin and Chairman Powell when they testify at tomorrow’s Senate Banking Committee hearing (10:00 a.m.).
To read the Oversight Commission report, go to: https://www.toomey.senate.gov/files/documents/COC%201st%20Report_05.18.2020.pdf
Also, the Wall Street Journal today ran a story on the MSLP, focused on how complicated the program will be. To read the WSJ story, go to: https://www.naw.org/wp-content/uploads/2020/05/WSJ-Feds-Challenge.pdf
Latest on the Paycheck Protection Program
While Treasury/SBA released the long-awaited PPP loan forgiveness application form and instructions on Friday evening (see our Saturday update), they also promised further guidance or regulations. As of now no further guidance has been issued and they have not addressed any of the issues raised in the many comments submitted in response to their Interim Final Rule, and by their own Inspector General. So despite the Friday release of the PPP forgiveness application, many are predicting that some of the forgiveness terms – like the 75% payroll ratio – will still be modified.
To see a Wall Street Journal story, go to: https://www.naw.org/wp-content/uploads/2020/05/WSJ-US-Expected.pdf
To see an Accounting Today story, go to: https://www.naw.org/wp-content/uploads/2020/05/Accounting-Today.pdf
Also, the American Institute of Certified Public Accountants (AICPA) has been actively engaged on this issue, and has useful information and tools on their website, including PPP loan calculators for different types of businesses with PPP loans. To access all of the AICPA PPP resources, go to: https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/sba-paycheck-protection-program-resources-for-cpas.html
Latest Congressional Action on the Next Coronavirus Relief Package
White House economic adviser Kevin Hassett said today that a fourth stimulus package may not be needed to address the economic damage caused by the novel coronavirus pandemic. “I think it’s possible that we will see a strong-enough economy that we don’t need a phase four,” Hassett told reporters at the White House.
Both the administration and Senate Republican leaders are currently in a “wait and see” mode to assess the full impact of previous stimulus legislation on the U.S. economy before resuming formal talks on a fourth package. Meanwhile, House Democrats on Friday narrowly passed a massive $3 trillion economic stimulus package, a bill that has already been rejected by President Trump and Senate Republicans. The White House has signaled it will not approach formal negotiations on a fourth round of stimulus until the month of June.
This week, the Senate returns to resume consideration of President Trump’s picks for the judiciary and the Federal Election Commission. The House will conduct some business at the committee level, but the chamber has no plans to consider any legislation on the floor.
Resources for Employers
As states continue to roll back stay-at-home orders and companies begin to plan on how they will return to the workplace, businesses are looking at federal, state, and local laws to determine how they should proceed. The HR Policy Association, a close ally of NAW, has compiled a memorandum of key laws to be aware of in the midst of the COVID-19 pandemic. The memorandum covers the following subjects:
- Occupational Safety and Health Act
- National Labor Relations Act
- Fair Labor Standards Act & State Compensation Laws
- Workers’ Compensation
- Age Discrimination in Employment Act
- Americans with Disabilities Act
- Title VII
- Federal Family and Medical Leave Act
- Privacy Laws
- Employee Retirement Income Security Act
- State and Local Scheduling laws
NAW members may find this information useful as you begin to plan for your own re-opening.
To view the executive summary, go to: https://www.naw.org/wp-content/uploads/2020/05/ExecSum.pdf
To read the entire memorandum, go to: https://www.naw.org/wp-content/uploads/2020/05/MEMO.pdf
Latest on Re-Opening the Economy
With state and local governments gearing back up to re-open the economy, many employers are seeking answers to the challenging issues they will face as they resume their business operations amidst COVID-19.
Stateside Associates publishes a daily report about State and Local Government responses to the evolving situation. Some of the new developments in today’s report include:
- Delaware Governor John Carney (D) announced lifting restrictions on beaches and community pools on May 22, subject to strict social distancing requirements and other restrictions.
- Montana Governor Steve Bullock (D) announced he is directing $5 million in federal CARES Act funds to expand assistance to thousands of Montanans struggling to afford their home energy needs.
- The Nevada Health Response published a report entitled Roadmap to Recovery.
We are also providing a link to a spreadsheet that includes state and local COVID-19 response information provided by MultiState Associates.
To view their spreadsheet, go to: https://docs.google.com/spreadsheets/d/e/2PACX-1vRlJWZJ7OkGUW57_rdA2n3xBJ3qjW6u4Z9N6K9Y5L4bM_6H7-S308qdKmJfpVstYWf300nyujvZPFSy/pubhtml?urp=gmail_link
May 28 NAW Webinar on Economic Outlook:
We are partnering with NAW senior economic advisor Alan Beaulieu to produce a second critical economic forecast webinar. This webinar, “Distribution Post COVID-19 Outlook,” will run Thursday, May 28, from 3:00 to 4:30 PM EDT. Seats are limited, so if you are interested, please purchase your seat today at: www.naw.org/distribution-post-covid-19
Jade West, Chief Government Relations Officer
Blake Adami, Vice President-Government Relations
Seth Waugh, Associate Vice President-Government Relations
National Association of Wholesaler-Distributors
The above information and links to other information has been prepared by NAW for the general information of NAW members. It is not intended to, and does not, provide tax, legal or professional advice concerning any specific matter. You should not act on the information without first obtaining professional advice and counsel.