Coronavirus Update | NAWBO

June 22, 2020 12:06 PM

Reminder: Checking on EIDL Status

There are two ways to check the status of your EIDL application:

1.  Call the SBA Disaster Assistance Customer Service Center at 800-659-2955. An alternative number is 1-877-641-8202.

- Be prepared for long hold times and have your application # ready. You may also need to verify additional information, such as the name of your business, federal tax ID, and/or your legal name.

2.  Email DisasterCustomerService@SBA.gov - include your business name, application #, your name and phone number. They will reply either the same day or the next business day.

- If you email the SBA, make sure to provide your legal name and your application number (if you applied online). You may also be required to submit additional information, such as your business name, federal tax ID, or other identifying information.

Success for NAWBO Advocacy’s Bipartisan Oversight Efforts

NAWBO National’s Advocacy Agenda includes bipartisan oversight. Bipartisan oversight efforts should consist of how financial institutions and lending vehicles served small businesses during the pandemic. On Friday, the U.S. Small Business Administration and the U.S. Department of the Treasury announced they would make additional data public regarding the Paycheck Protection Program (PPP).  This agreement will ensure that the interests of both transparency and protections for small businesses are served.

SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges as follows:

  • $150,000-350,000
  • $350,000-1 million
  • $1-2 million
  • $2-5 million
  • $5-10 million

These categories account for nearly 75 percent of the loan dollars approved.  For loans below $150,000, totals will be released, aggregated by zip code, by industry, by business type, and by various demographic categories.

NAWBO Sends Letter to House and Senate Leadership on ERTC Improvements

NAWBO sent a letter along with numerous organizations expressing support for H.R. 6776, the JOBS Credit Act of 2020 co-sponsored by Reps. Stephanie Murphy and John Katko.  The bipartisan legislation would improve and enhance the Employee Retention Tax Credit (ERTC) program. Building on the ERTC provision included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136 (Section 2301)), the JOBS Credit Act would consist of several policy enhancements, such as: 

  • An expansion of the credit percentage from 50 percent to 80 percent of qualified wages;
  • An increase of the per-employee limitation from $10,000 for all calendar quarters to $15,000 per calendar quarter (and an aggregate of $45,000 for all calendar quarters);
  • A phased-in credit, which will allow employers with more than a 20 percent decline in gross receipts to be eligible for a portion of the credit; and
  • Improved coordination between the ERTC and the Paycheck Protection Program so employers can be eligible for both programs, but with guardrails in place to prevent “double-dipping.”

To see the letter, click here.

NAWBO Sends Letter to Senate Leadership on S. 3612 – the Small Business Expense Protection Act of 2020

NAWBO joined several organizations on a letter to encourage Senate Leadership to support efforts like the Small Business Expense Protection Act of 2020. The bipartisan, introduced by U.S. Senators John Cornyn (R-TX), Finance Committee Chairman Chuck Grassley (R-IA), Finance Committee Ranking Member Ron Wyden (D-OR), Small Business Committee Chairman Marco Rubio (R-FL), and Tom Carper (D-DE) would allow businesses to deduct expenses paid with a forgiven PPP loan from their taxes.

To see the letter, click here. To see NAWBO’s press release in support of the legislation, click here.

ICYMI: SBA Launches Tool for SBs to Connect with CDFIs, Small Asset Lenders Participating in PPP

the launch of a dedicated online tool for small businesses and non-profits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Microlenders, as well as traditional smaller asset size lenders in the Paycheck Protection Program (PPP).  SBA’s Lender Match is an additional resource for pandemic-affected small businesses that have not applied for or received an approved PPP loan to connect with lenders. 

 

June 9, 2020 3:53 PM

Oversight Hearings Begin

The U.S. Senate Small Business and Entrepreneurship Committee held one hearing last week and will hold one hearing tomorrow. For the hearing tomorrow, Administrator Carranza and Treasury Secretary Mnuchin on the first panel. The other hearing doesn’t have witnesses yet. Below are dates and webpages.

  • Tomorrow at 10:00 AM EDT, the Committee will hold a hearing titled, "Implementation of Title I of the CARES Act." To watch, click here.
  • Last week’s hearing was held on June 3rd entitled,"Perspectives from Main Street: COVID-19's Impact on Small Business." To view the archive, click here

The U.S. House Committee on Small Business announced its hearing schedule for June.

  • Tomorrow at 1:00 P.M.- Remote Hearing: The Economic Injury Disaster Loan Program: A View from Main Street. To watch live, click here.
  • Wednesday, June 17, 2020 – 1:00 P.M.- Remote Hearing: Paycheck Protection Program: Loan Forgiveness and Other Challenges
  • Wednesday, June 24, 2019 – 1:00 P.M.- Remote Hearing: An Overview of the Dynamic Between the Defense Production Act and Small Contractors (Subcommittee on Contracting and Infrastructure)

Hearings will be posted on the Committee’s website one week in advance. Witness testimony will be posted within 24 hours after the hearing’s occurrence. In addition, all hearings will be livestreamed on the Committee’s Youtube page.

The Federal Reserve Board Expands the Main Street Lending Program

Yesterday, the Federal Reserve Board announcement its expansion of the Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The changes include:

  • Lowering the minimum loan size for certain loans to $250,000 from $500,000;
  • Increasing the maximum loan size for all facilities;
  • Increasing the term of each loan option to five years, from four years;
  • Extending the repayment period for all loans by delaying principal payments for two years, rather than one; and
  • Raising the Reserve Bank's participation to 95% for all loans.

Many small businesses are looking to the Main Street Lending Program as another option during the current crisis. The Board is still working to establish a program for nonprofit organizations. To see the press release, click here.

ICYMI: Carranza and Mnuchin Issue Joint Statement on PPP Flexibility

SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement yesterday following the enactment of the Paycheck Protection Program (PPP) Flexibility Act:

“We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program.

“We also want to express our gratitude to Chairman Rubio, Ranking Member Cardin, Senator Collins, Congressman Roy, Congressman Phillips, and other members of Congress who have helped to create and guide our implementation of this critical program that has provided over 4.5 million small business loans totaling more than $500 billion to ensure that approximately 50 million hardworking Americans stay connected to their jobs.

“This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country.

“We look forward to getting the American people back to work as quickly as possible.”

SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP.  To see the full release, click here.

 

June 3, 2020 7:29 PM

HR 7010 Passes Senate

H.R.7010 - Paycheck Protection Program Flexibility Act of 2020 passed the Senate this evening which passed the lower chamber last week.

Remember, the NAWBO supported legislation, authored by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), makes some changes to the Paycheck Protection Program which includes:

  • Expanding the covered period from eight weeks to 24 weeks
  • Extending the deadline for rehiring workers from June 30, 2020 to December 31, 2020
  • Allowing at least 60% on payroll and up to 40% on rent, overhead and other costs instead of the original 75%/25% 

Next, it will head to the President’s desk. 

June 1, 2020 7:19 PM

House Leaves Town

The House plans to return Tuesday, June 30, 2020. The House Congressional Calendar has been revised, to see voting days and district work periods, click here.

Senate Plans to Take Up PPP Fix Bill

The Senate returned this afternoon. Tomorrow, the Senate will could potentially vote on the nomination of Brian D. Miller, of Virginia, to be Special Inspector General for Pandemic Recovery. Later this week, the upper chamber is expected to take up H.R.7010 - Paycheck Protection Program Flexibility Act of 2020 which passed the lower chamber last week.

Remember, the NAWBO supported legislation, authored by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), makes some changes to the Paycheck Protection Program which includes:

  • Expanding the covered period from eight weeks to 24 weeks
  • Extending the deadline for rehiring workers from June 30, 2020 to December 31, 2020
  • Allowing at least 60% on payroll and up to 40% on rent, overhead and other costs instead of the original 75%/25%

The U.S. Senate Small Business and Entrepreneurship Committee has posted two upcoming hearings. Administrator Carranza and Treasury Secretary Mnuchin will be testifying on June 10th. Below are dates and links to watch.

  • June 3rd, at 10:00 AM EDT, the Committee will hold a hearing titled, "Perspectives from Main Street: COVID-19's Impact on Small Business." To watch, click here
  • June 10th, at 10:00 AM EDT, the Committee will hold a hearing titled, "Implementation of Title I of the CARES Act." To watch, click here.

May 28, 2020 3:05 PM

NAWBO COVID Update Survey!

#NAWBONation please feel out this brief survey, so we can let our lawmakers know how the coronavirus pandemic is impacting women business owners across America. 

It will take you less than 10 minutes! CLICK HERE TO TAKE THE SURVEY

House Passes NAWBO Supported PPP Fixes: Next Up, the Senate

Today, the second day that Members of the House could vote by proxy or remote voting. The House passed bipartisan legislation to fix some parts of the Paycheck Protection Program. H.R.7010 - Paycheck Protection Program Flexibility Act of 2020 passed easily by a vote of 417-1.

The NAWBO supported legislation, authored by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), makes some changes to the Paycheck Protection Program which includes:

  • Expanding the covered period from eight weeks to 24 weeks
  • Extending the deadline for rehiring workers from June 30, 2020 to December 31, 2020
  • Allowing at least 60% on payroll and up to 40% on rent, overhead and other costs instead of the original 75%/25%

The bill now heads to the Senate. Remember, the Senate tried to hotline (or fast track) a similar piece of legislation last week before leaving for an extended Memorial Day break, but at least one senator objected. The Senate timeframe for the covered period is different. They have a 16-week covered period. The Senate bill would also allow businesses to spend the money on personal protective equipment and other infection-preventing investments. It is still unclear which bill the Senate will bring up. They return June 1st for legislative business. We’ll keep you posted.

Oversight Bill Fails

Another coronavirus related bill failed in the House today. H.R. 6782, the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home Act (TRUTH) Act which would have required the Administrator of the Small Business Administration to submit a report on recipients of assistance under the paycheck protection program and the economic injury disaster loan program, and for other purposes. The legislation was crafted by Democrats as a transparency measure. Republicans believed making the information publicly available would lead to business shaming.  

SBA and Treasury Department Announce $10 Billion for CDFIs to Participate in the Paycheck Protection Program

Today, the U.S. Small Business Administration, in consultation with the U.S. Treasury Department, announced that it is setting aside $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs).  CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses.  The Administration believes these dedicated funds will further ensure that the PPP reaches all communities in need of relief during the COVID-19 pandemic.

May 27, 2020 9:00 AM

#NAWBONation please feel out this brief survey, so we can let our lawmakers know how the coronavirus pandemic is impacting women business owners across America. 

We’ll be talking to U.S. Senate and House of Representatives Small Business Committee Leadership on June 2nd, and we need CURRENT information from our members.

CLICK HERE TO TAKE THE SURVEY

We will close the survey by NOON Friday, May 29th to share our results with elected officials on our Advocacy Days.

May 25, 2020 7:00 PM

SBA & Treasury Released Additional Guidance

Interim Final Rule on Paycheck Protection Program Loan Forgiveness 

Here are some highlights:

  • To receive loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application (SBA Form 3508 or lender equivalent) to its lender (or the lender servicing its loan). As a general matter, the lender will review the application and make a decision regarding loan forgiveness. The lender has 60 days from receipt of a complete application to issue a decision to SBA.
  • If only a portion of the loan is forgiven, or if the forgiveness request is denied, any remaining balance due on the loan must be repaid by the borrower on or before the two-year maturity of the loan. 
  • Borrowers may seek forgiveness for payroll costs for the eight weeks beginning on either: i. the date of disbursement of the borrower’s PPP loan proceeds from the Lender (i.e., the start of the covered period); or ii. the first day of the first payroll cycle in the covered period (the “alternative payroll covered period”).
  • A nonpayroll cost is eligible for forgiveness if it was: i. paid during the covered period; or ii. incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.

Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities 

Here are some highlights:

  • For a PPP loan of any size, SBA may undertake a review at any time in SBA’s discretion.
  • If loan documentation submitted to SBA by the lender or any other information indicates that the borrower may be ineligible for a PPP loan or may be ineligible to receive the loan amount or loan forgiveness amount claimed by the borrower, SBA will require the lender to contact the borrower in writing to request additional information. 
  • If SBA determines that a borrower is ineligible for the PPP loan, SBA will direct the lender to deny the loan forgiveness application. 
  • SBA intends to issue a separate interim final rule addressing appeals process.

May 20, 2020 8:35 PM

Small Business Legislation On Hold in Senate

Thursday started optimistically, but it seems it will take a few more days until Congress makes some changes to the Paycheck Protection Program (PPP). The Senate unveiled a plan to make some tweaks to PPP today.

The Senate’s plan would:

  • extend loan forgiveness from eight weeks to 16
  • extend the program through December
  • allow businesses to use loan funds to buy personal protective equipment and make other investments to reopen safely.

Meanwhile, the House plans to vote on the Paycheck Protection Flexibility Act next week. (More on this below). Unlike the Senate plan, this bill would eliminate the 75-25 requirement which Secretary Mnuchin seems to be resisting.

Neither bill would add more funds to the PPP as demand has slowed down, with about $100 billion still available.

NAWBO Supports Paycheck Protection Flexibility Act

NAWBO signed on to the letter with several other small business organizations supporting the Paycheck Protection Flexibility Act co-sponsored by Representatives Chip Roy (R-TX) and Dean Phillips (D-MN). If passed, the legislation would improve the PPP by:

1) allowing loan forgiveness for expenses outside of the eight-week period,
2) striking the restrictive 75%/25% rule on loan proceed use,
3) expanding loan terms beyond two years,
4)ensuring full access to payroll tax deferment for businesses that take PPP loans, and 
5) extending June 30, 2020, rehire deadline to respond to the workforce effects of enhanced Unemployment Insurance.

May 19, 2020 3:23 PM

House Plans to Vote on PPP Fix Standalone Bill

Speaker Pelosi announced today that the House plans to vote next week on legislation to change parts of the Paycheck Protection Program. This would be a standalone measure to address issues with the PPP program. Many believe this would not face as many hurdles in the Senate and with the White House. The Speaker’s $3 trillion relief package faces lots of opposition in the upper chamber. 

The standalone bill:

  • allows loan forgiveness for expenses outside of the eight-week period,
  • strikes the restrictive 75%/25% rule on loan proceed use,
  • expands loan terms beyond two years,
  • ensures full access to payroll tax deferment for businesses that take PPP loans, and
  • extends the June 30, 2020 rehiring deadline.

We’ll send more details as we see them. There is no clear answer on when the Senate would take action, but Senator Angus King is putting together the companion bill.

NAWBO National Supports Bipartisan Legislation to Help PPP Participants

Click here to see the press release on NAWBO National’s support of the Small Business Expense Protection Act of 2020. The bill would allow businesses to deduct expenses paid with a forgiven PPP loan from their taxes.

May 12, 2020 8:39 PM

House Unveils Its Coronavirus “HEROES” Bill

Today, House Democrats unveiled the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The $3 trillion package includes funding for food assistance, state and local governments, and another round of direct stimulus. Keep in mind. The HEROES Act is ONLY a bill. It would have to pass the Senate as well.

To see small business Fact Sheet on the HEROES Act, click here. To see a section by section of the small business provisions, click here.

If this bill passed as is, some changes to  the Paycheck Protection Program (PPP) would include:

  • Extending the Paycheck Protection Program to December 31,
  • Allowing borrowers to choose their 24-week period, giving them the flexibility to wait out shelter in place orders and still remain eligible for forgiveness;
  • Removing the requirement to use 75% of loan proceeds for payroll,
  • Establishing a 25% set-aside of funds solely for small entities with ten or fewer employees, and once expended, they would still be able to access assistance in the general PPP fund, and
  • Creating a 25% set-aside of funds solely for nonprofits and expands the PPP eligibility to allow all nonprofits to participate.

ICYMI: Video and Read  Out of Speaker Pelosi Call

For those who were unable to join the Small Business Roundtable call with Speaker Pelosi and NAWBO CEO Jen Earle last week, click here to watch the video or click here for a read out from Public Private Strategies.

Senators Introduced Small Business Expense Protection Act

Recently, Senators Marco Rubio (R-FL), John Cornyn (R-TX), Chuck Grassley (R-IA), Ron Wyden (D-OR), and Tom Carper (D-DE), introduced the Small Business Expense Protection Act, which would clarify the Small Business Administration’s Paycheck Protection Program (PPP) so small businesses can deduct expenses paid with a forgiven PPP loan from their taxes.

May 6, 2020 9:30 PM

Senators Grassley, Wyden and Rep. Neal Send Letter to Treasury on Deductible Businesses and Paycheck Protection Program

Chairman Chuck Grassley and Ranking Member Ron Wyden from Senate Finance Committee as well as House Ways and Means Committee Chairman Richard Neal, sent a letter to Treasury Secretary Mnuchin yesterday regarding Notice 2020-32 that states that otherwise deductible business expenses are not deductible if the taxpayer is the recipient of a forgive Paycheck Protection Program loan. The Members of Congress said that this was not the specific intent of Congress. Click here to see the full letter. Senator John Cornyn also introduced legislation to clarify that a receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses.

Senator Cory Gardner (R-CO) Sends Letter on Paycheck Protection Program Revisions to Colleagues

Sen. Gardner sends a letter to colleagues about revisions to the Paycheck Protection Program in future legislation. Here are some highlights for NAWBO members:

  • Changes would include setting aside PPP funding for businesses left behind - Specifically, to support our smallest businesses, as well as minority-, veteran-, women-owned, and other underserved companies that may not have an existing business banking relationship.
  • Also, future legislation should expand eligibility for PPP to include all nonprofits who should not have been previously excluded, including those operating under Internal Revenue Code section 501(c)(6).

Senate Republicans Block Dem Oversight Measure

This week, Republicans blocked the Transparency and Oversight of COVID-19 Small Business Assistance Act co-sponsored by Democratic Senators Cardin, Shaheen, Brown, Schumer, and Manchin. Democrats were trying to get it passed by unanimous consent but failed. The bill would:

  • Establish a warning system for funding shortfalls in PPP, EIDL, and EIDL grants
  • Require daily overview of loans and grants
  • Require in-depth weekly reports
  • Mandate plans for the use of administrative funds and fraud prevention,
  • Make all data publicly available and protect sensitive information
  • Require GAO to report on COVID-19 small business programs.

Speaker Pelosi Gives a Sneak Peek Behind the Curtain to Small Business

For those who were unable to join the Small Business Roundtable call with Speaker Pelosi and NAWBO CEO Jen Earle on Tuesday, here is an article that talks about some of the discussion. The Democrats plan to include an extension of the loan forgiveness period, a set aside for businesses with 25 or fewer employees under the Paycheck Protection Program and expand eligibility to 501(c)(6) organizations as well as eliminate the 75% requirement for payroll.

Summary of Paycheck Protection Program Data as of 5 PM ET Today

Click here and scroll down to see details. A total of 2,441,369 loans in the second round so far.

May 4, 2020 8:20 PM

TOMORROW Conference Call with Speaker Pelosi

On Tuesday, May 5th at 1:00 PM PT/4:00 PM ET, join NAWBO CEO Jen Earle and other members of the Small Business Roundtable for a discussion with The Honorable Nancy Pelosi on COVID’s ongoing economic impacts and the House Leadership’s targeted relief efforts for the nation’s small businesses. Go here to register.

NAWBO Advocacy Days are Right Around the Corner

You’ll want to be ready to talk before Virtual Advocacy Days. Join us THIS Wednesday at 3:30 PM ET to go over the 2020 NAWBO Advocacy Agenda.

Join Zoom Meeting:

https://zoom.us/j/662126945?pwd=enIxMlkvTDJPcU55Wm5IdGh5blpHUT09

Meeting ID: 662 126 945

Password: 507623

One tap mobile

+16699006833,,662126945# US (San Jose)

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Remember, Virtual Advocacy Days will be May 18, 20, June 2-4. We’ll have details on timing soon, and it will be posted here! But, keep those dates in the calendar and register here.

Senate Returns to Washington

The Senate returned to Washington today. They aren’t even close to an agreement on the next coronavirus relief bill. Right now, Republicans want liability protection, and Democrats want more aid for state local governments and expansion of food nutrition assistance. We’ll have to wait and see what eventually gets hammered out.

NAWBO Sends Letter on Loan Forgiveness with PPP

Today, NAWBO sent a letter to Treasury and the Small Business Administration requesting more guidance on the forgiveness section of the Paycheck Protection Program. The message focused on three main areas, including the application for forgiveness, clarification for the eight-week covered period, and the twenty-five percent requirement.

SBA and Treasury Release Updated Paycheck Protection Program Report

Click here to see the updated Paycheck Protection Program Report for the second round of funding from April 27 through May 1st. Click here to review.

IRS Released Notice on Deductibility for Taxpayers Receiving Paycheck Protection Loan

The Internal Revenue Service (IRS) released a notice regarding deduction expenses. The notice forbids small business owners to claim tax deductions when using the PPP funding to cover wages, rent, etc. To view the full notice, click here

 

April 30, 2020 9:05 PM

Letter on Paycheck Protection Forgiveness

NAWBO HQ is drafting a letter on the forgiveness portion of the Paycheck Protection Program. Please email epatout@nawbo.org subject: Forgiveness and let me know what questions you have about it.

Bipartisan Virtual Congress Task Force

The House formed a bipartisan virtual congress task force. This Task Force will create a virtual method that allows policymakers to convene for roundtables, hearings, and legislative meetings during the national health crises.  

House Select Committee on the Coronavirus Crisis 

Yesterday, House Speaker Nancy Pelosi (D-CA), appointed members to serve on the House Select Committee on the Coronavirus Crisis. (If you remember, last week, the House created a Select Subcommittee on the Coronavirus Crisis as a subcommittee of the Committee on Oversight and Reform to do further oversight.)

The Committee’s Democratic members include:  

  • Majority Whip Jim Clyburn (D-SC) (Committee Chair)  
  • Chairwoman Maxine Waters (D-CA), House Financial Services Committee 
  • Chairwoman Carolyn Maloney, House Oversight and Reform Committee 
  • Chairwoman Nydia Velázquez (D-NY), House Small Business Committee 
  • Chairman Bill Foster (D-IL), Subcommittee on Investigations and Oversight of Science, Space, and Technology Committee 
  • Chairman Jamie Raskin (D-MD), Subcommittee on Civil Rights and Civil Liberties of Oversight and Reform Committee 
  • Chairman Andy Kim (D-NJ), Subcommittee on Economic Growth, Tax, and Capital Access of Small Business Committee 

The Six Republican Members have not been announced.

Paycheck Protection Program Updates

We don’t have much information about the next Coronavirus relief package. Still, the Trump Administration and both Chambers of Congress believe that another round of CARES PPP funding will be necessary for American Small businesses. 

Main Street Lending Program

Today, the Federal Reserve Board released additional information regarding the Main Street Lending Program (MSLP), established under the CARES Act. The MSLP is a $75 billion relief loan program for mid-sized businesses with fewer than 10,000 employees. 

After receiving feedback, the Federal Reserve decided to expand the loan options available to businesses and increase the maximum size of the companies that are eligible to participate. The program’s modifications include: 

  • Creating a third loan option, with increased risk-sharing by lenders for borrowers with greater leverage; 
  • Lowering the minimum loan size for certain loans to $500,000; and 
  • Expanding the pool of businesses eligible to borrow. 

SBA Town Hall

Next Monday, the Small Business Administration (SBA) will hold a Q&A town-hall-style webinar to help prospective applicants and small business owners understand the second round of PPP relief funding. To register for the webinar, click here.

 

April 29, 2020 8:10 PM

New Questions Added to Paycheck Protection Program FAQ

Treasury has added more questions to the Paycheck Protection FAQ. Click here to see the most up-to-date copy. New questions include details around payroll and different compensation to employees, information to address agricultural producers, and change of ownership, among other items. Check out questions 32-38. Are you still trying to understand how these loan amounts are calculated? Click here.

SBA Data on EIDL Loans and EIDL Advances

The SBA has released data on the EIDL Loans and EIDL Advances. As of April 24, 2020, the SBA had processed a total of 38,984 EIDL loans totaling $7,967,174,888, and a total of 1,192,519 advances totaling $4,805,897,000.

Senate Small Business Committee Members COVID Efforts

Rubio, Cardin Lead Bipartisan Letter to Treasury & SBA on an Administrative Fix to 7(a) Loan Program Authorization
U.S. Senators Marco Rubio (R-Fla.) and Ben Cardin (D-Md.), Chairman and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, led a bipartisan letter to Steven Mnuchin, Secretary of the U.S. Department of the Treasury, and Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA), urging the agencies to provide an immediate administrative fix to ensure the continued operation of the 7(a) loan program. 

Due to a technical drafting error, the CARES Act and the Paycheck Protection Program and Health Care Enhancement Act did not create separate authorization levels for the 7(a) program and the Paycheck Protection Program. As a result, the 7(a) program’s FY 2020 $30 billion lending authority will be voided until July 1, 2020, once the amount authorized for PPP is committed. That will leave numerous businesses seeking access to capital without access to the 7(a) loan program.

Rubio Urges SBA and Treasury to Prioritize CDFI Funding for the Paycheck Protection Program
U.S. Senator Marco Rubio (R-FL), Chairman of the Senate Committee on Small Business and Entrepreneurship, urged Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA), and Steven Mnuchin, Secretary of the U.S. Department of the Treasury, to provide immediate guidance and expedite approvals to ensure Community Development Financial Institutions (CDFI) and minority depository institutions serving underserved communities have access to the second round of funding for the Paycheck Protection Program. Click here to see the letter.

Cardin, Senate Democratic Leaders Urge Senate Republicans to Make Oversight of COVID-19 Relief Efforts a Priority
U.S. Senate Committee on Small Business and Entrepreneurship Ranking Member Ben Cardin (D-Md.), Senate Democratic Leader Chuck Schumer (D-N.Y.), Senate Democratic Whip Dick Durbin (D-Ill.), Assistant Democratic Leader Patty Murray (D-Wash.), and Democratic Policy and Communications Committee Chairwoman Debbie Stabenow (D-Mich.), sent a letter to Senate Majority Leader Mitch McConnell (R-Ky.), urging Leader McConnell to make COVID-19 related matters and oversight of all COVID-related legislation enacted by Congress the Senate’s focus. Click here for the full text of the letter.

ICYMI: April 29th’s Paycheck Protection Program (PPP) Lending Operations Update
SBA and Treasury value all lenders and their small business customers.

To ensure access to the PPP loan program for the smallest lenders and their small business customers, starting at 4 p.m. today EDT through 11:59 p.m. EDT, SBA systems will only accept loans from lending institutions with asset sizes less than $1 billion dollars.

Please note, lending institutions with asset sizes less than $1 billion will still be able to submit PPP loans outside of this time frame. Please also note that lenders with asset sizes greater than $1 billion will be able to submit loans outside of today’s 4pm -11:59pm EDT reserved processing time.

This reserved processing time applies today April 29, 2020. SBA and Treasury will evaluate whether to create a similar reserved time again in the future.

SBA and Treasury continue to monitor loan system performance and will continue to provide frequent updates to the lending community.

 

April 23, 2020 6:52 PM

U.S. House of Representatives Passes Interim Relief Package

In a 388-5 vote, the House passed the Interim Relief Package. Congress has now appropriated almost $3 trillion dollars in emergency spending. To review, these are the highlights:

  • $370 billion for SBA’s small business relief efforts through the Paycheck Protection Program
    • $60 billion of those funds will be reserved for smaller lending institutions, such as credit unions, community banks, Community Development Financial Institutions and Minority Depository Institutions that can better reach underbanked and underserved businesses.
  • $50 billion for SBA’s EIDL program, which will allow the agency to make more than $350 billion in direct, low-interest, long-term disaster loans.
  • $10 billion for the EIDL grants program, which will provide small businesses with a quick infusion of capital worth up to $10,000 each (Remember, SBA has been giving $1 K per employee to reach more businesses.
  • $75 billion for hospitals
  • $25 billion for testing

The four Republicans who voted "no" were House Freedom Caucus Chairman Andy Biggs (Ariz.) and Reps. Ken Buck (Colo.), Jody Hice (Ga.) and Thomas Massie (Ky.) as well as Democrat Alexandria Ocasio-Cortez (NY). Representative Justin Amash (I-Mich.) voted present.

In addition, to passing the relief package, the House also created a Select Subcommittee on the Coronavirus Crisis as a subcommittee of the Committee on Oversight and Reform to do further oversight. The committee will be chaired by House Majority Whip Representative Jim Clyburn (D-SC).

Treasury Releases Additional Guidance: Harder for Publicly Traded Companies to Qualify for PPP

See guidance here. Take a look at question #31.

All borrowers must assess their economic need for a Paycheck Protection Program loan. “Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”  

Rubio Sends Letters to Large Banks Participating in Paycheck Protection Program

The letters requesting information on their application process amid recent reports were sent to the Chief Executive Officers of Bank of America CorporationJPMorgan Chase & Co.,Wells Fargo & Company,PNC Financial Services Group, Inc.KeyBank, NAM&T BankHuntington Bancshares, Inc.TD BankTruist Bank,Zions Bank,Regions Bank, and US Bancorp

Rubio, Cardin, Velázquez Send Letter to SBA on EIDL Data Breach

U.S. Senators Marco Rubio (R-FL) and Ben Cardin (D-MD), Chairman and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, and Representative Nydia Velázquez (D-NY), Chairwoman of the House Committee on Small Business, sent a letter to, SBA Administrator Carranza asking the agency for a complete accounting with regard to recent reports of a data breach of personally identifiable information for nearly 8,000 businesses that had applied for the SBA’s Economic Injury Disaster Loan (EIDL) program. Here is the full text of the letter.

NAWBO Snap Poll Released

Yesterday, NAWBO HQ released to the press and the Hill the results of our snap poll on the Paycheck Protection Program, the Economic Injury Disaster Loan (EIDL) program, and the Emergency EIDL grant program. Here are the highlights:

Of the members surveyed who applied for a Paycheck Protection Program (PPP) Loan, an Economic Injury Disaster Loan (EIDL), or an Emergency EIDL grant as of April 21st:

  • approximately 51% of applicants had not received the PPP Loan,
  • approximately 93% of applicants have not received the EIDL Loan, and
  • approximately 78% of applicants have not received the Emergency EIDL grant.

To see the full press release, click here.

April 21, 2020 8:12 PM

U.S. Senate Passes Interim Relief Package, Next Up the House

The U.S. Sente approved an interim relief package late this afternoon. The package provides:

  • $370 billion for SBA’s small business relief efforts through the Paycheck Protection Program
    • $60 billion of those funds will be reserved for smaller lending institutions, such as credit unions, community banks, Community Development Financial Institutions and Minority Depository Institutions that can better reach underbanked and underserved businesses.
  • $50 billion for SBA’s EIDL program, which will allow the agency to make more than $350 billion in direct, low-interest, long-term disaster loans.
  • $10 billion for the EIDL grants program, which will provide small businesses with a quick infusion of capital worth up to $10,000 each (Remember, SBA has been giving $1 K per employee to reach more businesses.
  • $75 billion for hospitals
  • $25 billion for testing

The U.S. House of Representatives is expected to pass the bill on Thursday morning.

 

NAWBO Signs On to Letter Re: Structural Improvements to Paycheck Protection Program

Today, the Economic Innovation Group (EIG), along with leading associations and organizations representing the industries and small businesses most deeply affected by COVID-19, released a letter to House and Senate leadership calling for Congress to swiftly implement structural improvements to the Paycheck Protection Program (PPP).

Top line improvements included:

  • Extend the duration of the program through December 31, 2020. The covered period for the program is currently set to end on June 30, 2020.
  • Remove funding uncertainty.
  • Increase borrowing limits so businesses can withstand an extended period of lost revenues and operational disruption.
  • Expand the list of covered expenses.
  • Extend covered period for loan forgiveness.
  • Make re-hiring deadline contingent on when the loan commences.
  • Ensure businesses are not penalized if former employees are unwilling to return.
  • Discourage unaffected businesses from applying.

Review the letter to see the details.

 

Remember to share your story #nawbonation here.

April 20, 2020 7:33 PM

NAWBO CARES Act Relief Survey

First and foremost, if you haven’t already, please go and fill out our quick survey on the CARES Act Relief programs, here. We want to be able to share if women business owners are receiving the support they need during this time of crisis.

April Advocacy Call Tomorrow

Tomorrow, Katie and Elle will be hosting the April Advocacy Call from 12:00 PM-12:30 PM ET. We’ll go over how you can give us your feedback on the current crisis situation, what’s going on in the nation’s capital on behalf of small business, and we’ll have an update on the 2020 Advocacy Day.

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Update on More Relief from Congress
After word came out late Thursday evening that the Paycheck Protection Program and Economic Injury Disaster loan funding had run dry, small business owners have been waiting to hear when Congress will fund more money into these programs. All signs are showing that they are close to an agreement, but we still have yet to see any text.

Outlines of the deal seem to include:

  • $300 B for Paycheck Protection program,
    • There may be language singling out $60 B of the Paycheck Protection Program's aid for small businesses to those businesses without access to large financial institutions.
  • $60 B in loans for economic disaster aid,
  • $75 B for hospitals, and
  • $25 billion for coronavirus testing.

The Senate is scheduled for a Tuesday session in case a deal is reached, and the House has warned members could be called back on Thursday instead of the initial Wednesday estimate since talks continued into Monday evening.

This is My Story
Please share your story with us so we can help advocate on your behalf.  You can share information about receiving federal aid, what the federal government could do for your business, or maybe you just need to vent. Fill our your “This is My Story,” so we can advocate on your behalf.

Paycheck Protection Report

ICYMI: You can find the most up-to-date Paycheck Protection Program (PPP) Report through April 16, 2020 at 12 PM EST on the SBA website.

 

April 19, 2020 10:15 AM

Potential Deal

They could have a deal later today for the Paycheck Protection Program and Economic Injury Disaster Loan Program as well as some other items.

Mnuchin stated that the next deal could include:

·      $300 billion for the Paycheck Protection Program,

·      $50 billion for disaster loans,

·      $75 billion for hospitals, and

·      $25 billion to invest in testing.

 

April 16, 2020 9:07 AM

Update EIDL Loans

SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

Update on Paycheck Protection Program

In the near future, SBA expects the amount of processed PPP loan volume to reach the maximum amount authorized and appropriated by Congress. Once the authorization limit is reached, SBA will not be able to accept any new loan applications for the Paycheck Protection Program. 

This will mean that lenders will no longer be able to load PPP applications into the Capital Access Financial System (CAFS or E-Tran) [the Lender Gateway]. SBA is unable to maintain a queue for PPP applications. Further, PPP loan amounts may not be adjusted by lenders within the CAFS system. 

Additionally, once the authorization limit is reached, SBA will no longer be able to accept new lender applications to become PPP lenders. 

SBA is reaching out to the lending community to make them aware of this eventuality so that they may prepare and inform their small business customers of the situation.

SBA will continue to inform its lending partners of new updates should Congress authorize additional funds.  

April 14, 2020 8:15 PM

Senate Will Not Return Before May 4th

Senate announced today they will not return for regular legislative action before May 4th. Earlier this week, the House announced they would return in early May.

Additional Guidance for Paycheck Protection Program

There are two new questions in today’s updated FAQ. The first question pertains to Members of Congress, SBA employees, or employees of legislative or judicial branches who own part of a company applying for PPP. The second question discusses how a Lender must collect the information contained in the borrower’s application before submitting through the SBA E-Tran system. NOTE: If a lender submitted the application prior to April 14th without the required information, they do not need to withdraw the application. They must fulfill the responsibilities no later than the loan closing. Click here to see new questions 26-27.

Paycheck Protection Program Interim Final Rule with Guidance for Individuals with self-employment income who file a Form 1040, Schedule C

Highlights of the Interim Final Rule include:

  • Self-employed individuals will need to rely on the 2019 Form 1040 Schedule C.
  • SBA will issue additional guidance for those individuals with self-employment who: (1) who were in operation on February 15, 2020, but not in 2019 (2) will file a Form 1040 Schedule C for 2020.
  • Limits partnerships to one PPP loan
  • Addresses how to calculate your maximum loan amount
  • Outlines how the PPP loan may be utilized (i.e. owner compensation replacement, employee payroll, mortgage interest payments, business rent payments , and business utility payments.)
    • NOTE: “You must have claimed or be entitled to claim a deduction for such expenses on your 2019 Form 1040 Schedule C for them to be a permissible use during the eight-week period following the first disbursement of the loan (the “covered period”). For example, if you did not claim or are not entitled to claim utilities expenses on your 2019 Form 1040 Schedule C, you cannot use the proceeds for utilities during the covered period.”
  • Discusses what amounts are eligible for forgiveness (i.e. payroll costs including salary, owner compensation replacement, payments of interest on mortgage, rent payments, and utility payments)

Click here to see the Interim Final Rule.

 

April 13,2020 8:51 PM

Check EIDL Grant Application Status

Here are two ways the SBA Los Angeles district office says to check the status of your EIDL grant/advance application:
1.  Call the SBA Disaster Assistance office at 800-659-2955. Be prepared for long hold times and have your application # ready.
2.  Email DisasterCustomerService@SBA.gov - include your business name, application #, your name and phone number. They will reply either the same day or the next business day.

Thanks for sharing @AmyWenslow!

House Not Expected Back Until May
Today, House Majority Leader Hoyer’s office said that the expected date to return will be in early May "absent an emergency." Both the Senate and House were planning on reconvening by April 20th. The Senate hasn’t announced any plans yet.

PPP or EIDL Loan? New Intuit Platform Helps You Navigate the Process
Intuit Aid Assist is a free service for everyone. It helps businesses and solopreneurs alike understand the difference between the relief programs. Click here to get started.

Treasury Releases Additional Questions to Paycheck Protection Program FAQ
These questions address:

  • non-bank lenders applying to be a PPP Lender,
  • franchises,
  • hotels,
  • restaurants, and
  • more details on information lenders need from applicants regarding every owner who has a 20% or greater ownership.

​Click here to see new questions 22-25.

 

April 8, 2020 8:41 PM

NAWBO Stories and SBR Letter Hits the Press

Today, two NAWBO members stories were shared anonymously with The Hill. However, their struggles captivated the struggle that so many of our women business owners face when trying to receive relief through the Paycheck Protection Program.

In addition to our outreach to the press, NAWBO along with the Small Business Roundtable sent their recommendations for the next round of Coronavirus relief. Click here to see the letter.

As the problems with PPP continue to rise, Treasury did release some new guidance  in the Frequently Asked Questions document this afternoon. The new guidance does state that if you are approved the lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval. It also gives more clarity to lenders about the process of guaranteeing the loans.

The Senate plans to vote on $250 billion more for the Paycheck Protection Program at 10 AM tomorrow.

NAWBO Sends Amendment to Administration and Hill

NAWBO sent a CARES Act amendment to the Hill today. In the Coronavirus Aid, Relief, and Economic Security (CARES) Act, 501(c)(6) organizations were not included in the Paycheck Protection Program. However, NAWBO helps small businesses navigate the normal day-to-day operations and is especially critical in providing guidance during times of crisis. By including certain 501(c)(6) organizations while also prohibiting others, the spirit of the CARES Act remains intact. Click here to see white paper with proposed language.

 

April 7, 2020 8:30 PM

Senate Hopes to Approve More Small Business Support
Senate Leadership is moving quickly to try to approve additional funding for small businesses. The Senate could move as early as Thursday to approve approximately $250 billion more. This would deliver more money to the Paycheck Protection Program. However, House Democratic Leaders signaled they would want the law to ensure that women and minority-owned businesses have equal access to the funds.

As of Friday, the average Paycheck Protection Program was around $300,000. The data is showing that the very small businesses are not receiving these loans, and there are many concerns about the reach of these loans.

April 3, 2020 7:30 PM

Paycheck Protection Program Roll Out

As of late Thursday night, many banks were waiting to participate in the Paycheck Protection Program. Some lenders were pointing to the initial 0.5% interest rate as the deterrent, but the late change to 1% in the interim final rule may make it more appealing for banks. Bottom line, it needs to be attractive for both sides, and it still remains to be seen when the money will start flowing.

Bank of America was one of the first big banks to participate in this program. At the beginning of the day, they were only servicing existing customers, but later in the day, they were servicing everyone. News reports stated that they had received 60,000 applications worth $6M by 9 AM.

ICYMI: Webinar on Family First Coronavirus Response Act

NAWBO Lawyer’s Group presented a webinar on the Family First Coronavirus Response Act. Click here to access the recording. They discussed both Emergency Paid Sick Leave and the Emergency Family Medical Leave portions of the bill. If you aren’t registered with the NAWBO Institute you will need to register first. Here is a link to the temporary rule which is effective April 1, 2020 - December 31, 2020.

April 2, 2020 8:06 PM

The Paycheck Protection Interim Final Rule came out. What does that mean? Basically, everything before this document doesn’t matter. They will go by this document instead of what you may have seen written in the law.

SBA Interim Final Rule for Payment Protection Program Released
Click here to review the Interim Final Rule for the Paycheck Protection Program. Please understand this is the most up-to-date information for the Paycheck Protection Program. This document should be used when you are looking at how the program will work.

Some topline items include:

  1. First come, first serve! If you want one, APPLY EARLY!
  2. To get a loan: Go through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. If your current lending partner is not participating, contact your local SBA assistance center for a list of lenders in your area.
  3. Independent contractors have the ability to apply for a PPP loan, so they do not count for purposes of a borrower’s PPP loan calculation.
  4. It will be a 2 year loan with a 1% interest rate.
  5. To apply: The applicant must submit SBA Form 2483 (Paycheck Protection Program Application Form. Here is a sample.) and payroll documentation.
  6. Go to page 8 section E and scroll down for examples of how to calculate maximum borrow amount.

ICYMI: NAWBO Sends Email about Paycheck Protection Program

Click here to see it. We want to make sure NAWBO members as much information as possible before the application process opens tomorrow.

Families First Coronavirus Response Act
TOMORROW, Friday, April 3, 2020 at 10:30 a.m. ET

Get up to date on the Coronavirus Response Act, including what we know, what we don’t know and how to best prepare. *APPLIES TO ALL EMPLOYERS WITH UNDER 500 EMPLOYEES
Presented by Susan Dawson of NAWBO-Chicago
REGISTER NOW

What the CARES Act Means for Your Business & What’s Next

Join our friends at Public Private Strategies for a webinar to hear about the programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers. During this webinar they will:

  1. Provide information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs
  2. Address additional tax provisions that are outside the scope of SBA
  3. Hear views from the small business leaders across the country

To register, click here.

 

April 1, 2020 8:25 PM

Short Video update here.

White House Call on Paycheck Protection Program

NAWBO represented WBOs on a call with the White House regarding guidance for the Paycheck Protection Program. They are still working on all the final regulations and NAWBO will set up a call once final guidance is issued.

Small Business Roundtable Sends Letter to Secretary Mnuchin and Administrator Carranza

On April 1, 2020, NAWBO along with 8 other member organizations as part of Small Business Roundtable sent a letter requesting additional clarity on the Paycheck Protection Program. We have received numerous questions from NAWBO members and are still searching for clarity ourselves. We will be in touch as soon as we receive any information. 

 

Updated March 31, 2020 8:08 PM

Treasury Released Paycheck Protection Program (PPP) Application and Application Dates

Apply as quickly as you can because there is a funding cap!

Small businesses and sole proprietorships can apply on April 3, 2020.

Independent contractors and self-employed individuals can apply on April 10, 2020.

To see a sample application for you to prepare for April 3rd or April 10th depending on your business, click on this Paycheck Protection Program (PPP) Sample Application Form.

Here is a basic breakdown of the program by Treasury. Click here to find more information for borrowers.

NAWBO Hosts Webinar on the CARES Act

For a recording, click here. Please note if you were not registered for the webinar you will need to register to gain access.

Other Resource Pages released by the White House

For more information on the CARES Act, go to the CARES Act page, hosted on Treasury’s website. For more information on the Economic Impact Payments, click here.

 

Updated March 30, 2020 8:45 PM

As the Senate is out on recess as well as the House, our daily updates may become a little less frequent for the next few weeks. As of right now, the U.S. Senate and House are due back April 20th. We will keep you posted if that date changes as we know there is much more work to be done on behalf of our nation’s small businesses.

Understanding the CARES Act

If you would like more information on the CARES Act, Katie and I will be holding a webinar tomorrow at 12 PM ET. We hope you are able to join us. We will be going through the small business provisions of the bill with the understanding that the regulations are being written over the next two weeks, so there are more details to come. Click here to register for the webinar.

Updated March 27, 2020  4:54 PM

Homework

Click here to find the Small Business Owner’s Guide to the CARES Act. READ IT! Find out how the government can help you get through this difficult time. See what works for your business. Tell us what you think does not. We know there is more legislation to come. We need to know how the current solutions are working, so we can fix them in the process. Email epatout@nawbo.org to give NAWBO your feedback.

Stories

We want to hear what you’re going through, so we can help. Please share your struggles so we can share them with Congress. Email epatout@nawbo.org to give NAWBO your feedback.

SBA/Hill/Small Business Roundtable Webinar

On March 27th, NAWBO CEO Jen Earle represented women business owners on a call with other leading small business organizations, SBA’s Office of Capital Access, and U.S. Senate Small Business and Entrepreneurship staff. Here's a link to the recording.

CARES Act Passes House

House Democratic leaders were able to move the package by voice vote despite Rep. Thomas Massie (R-KY) wish for a recorded tally.

For a NAWBO Summary of the small business provisions, click here. To see the small business portions explained by the Senate Small Business Committee click here. To see a section by section of the bill click here.

Updated March 26, 2020 7:50 PM

REMINDER **SBA Administrator Conference Call RE: COVID-19’s Economic Impacts and SBA’s Relief Efforts Rescheduled

SBA Administrator Jovita Carranza will join the Small Business Roundtable and CEOs of the leading small business organizations (including NAWBO CEO Jen Earle) for a discussion on the needs of America’s entrepreneurs and small business owners during the economic fallout resulting from the COVID-19 outbreak.  

WHEN: FRIDAY, MARCH 27 at 2:00PM ET
HOW:  Register here
https://register.gotowebinar.com/register/2828954763587844877

If you are unable to attend, please reach out to team@smallbusinessroundtable.org for a recording.

Updated March 26, 2020 8:28 AM

CARES Act Passes Unanimously

Late last night the U.S. Senate passed the CARES Act unanimously. This approximately $2.2 trillion stimulus package is expected to be voted on by the U.S. House on Friday. The House Leadership hopes to pass it by consent or voice vote. This would NOT require all the Members to come back to D.C. However, it seems some members from both sides of the aisle will be making the trip.

We will share more details of small business provisions later today.

Updated March 25, 2020 8:35 PM

$2T Senate Bill Hits Another Last Minute Snag

Well, the Senate hoped they would be voting on legislation this afternoon, but Senators Lindsey Graham (R-S.C.), Tim Scott (R-S.C.), Ben Sasse (R-Neb.) and Rick Scott (R-Fla.) were against speedy considerations because they believe it could encourage employees to be laid off instead of working. Basically, there is a concern that the unemployment insurance program would allow workers to paid more on unemployment than what they were making while employed. While these Members may have slowed the process, the Senate is still expected to vote on this package late tonight or early tomorrow morning.

It Hasn’t Passed Yet, But What’s in the Latest Stimulus for Small Business

Unfortunately, 501(c)(6) organizations were not included in this round of the stimulus, but we will continue the fight because we know there is more relief to come.

Here are some NAWBO wins we can see after reviewing the latest text:

  • NAWBO members who are sole proprietors, independent contractions, and self-employed were included in relief measures.
  • Paycheck Protection Program will provide 8 weeks of cashflow assistance through a federally guaranteed loan program which was expanded to begin on February 15th instead of the initially drafted March 1st date.
  • Borrowers will be eligible for loan forgiveness. (More details and caveats when the bill becomes law. Don’t want to put the cart before the horse.)
  • Creates emergency grants to allow an eligible entity who has applied for an EIDL loan due to COVID-19 to request an advance on that loan.

If the Senate gets the votes and the House passes it, we will give a detailed breakdown that illustrates what this bill means to you.

Updated March 24, 2020 7:30 PM

Senate Says Vote Coming Wednesday…But, We’ll See

Senators say they will be working into the night on the next coronavirus stimulus package. Food stamps and assistance for airlines are the sticking points in the negotiations. Senate Minority Leader Schumer says he’s at the “two-yard line” with Treasury Secretary Steven Mnuchin according to The Hill, but GOP Senators and the Administration say they’re still working on the draft.

NAWBO National and 50+ Chapters Urge Congress to Include Organizational Non-Profits

NAWBO and 50+ Chapter Presidents sent a press release to media outlets and the Hill discussing the need to include organizational non-profits in current legislative proposals. Please use your voice and send your concern to Washington.

Do Your Part and Advocate to Keep NAWBO Chapters Strong

Here is a template for Chapter Leaders. Here is a template for members. You can contact your senators here and your representatives can be found here. I would recommend then clicking on the contact section of your U.S. Representative’s page to fill out the form for an email. Snail mail letters will take too long.

Coalition of Business Organizations Sends Letter to Congressional Leadership on SBA 7(a) Loan Enhancement

As Congress considers the next stimulus package, NAWBO signed on to a letter sent to Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi, and Republican Leader McCarthy which recommends boosting the already existing SBA 7(a) loan program alongside other legislative efforts to increase loans to small business. 

Hashtags

NAWBO is the unified voice of over 10 million women-owned business in the US. During this time of crisis, we want to remain ONE voice together. Please use the hashtag #NAWBOVoice when you are talking about our Advocacy outreach on social media.

Advocacy Timeline Update

NAWBO continues to be your voice in the nation’s capital. Here is a timeline of outreach from the last couple weeks. This link will continue to be updated. #NAWBO #NAWBONation #NAWBOVoice

Updated March 23, 2020 8:45 PM

SBA Administrator Conference Call RE: COVID-19’s Economic Impacts and SBA’s Relief Efforts Rescheduled

SBA Administrator Jovita Carranza will join the Small Business Roundtable and CEOs of the leading small business organizations for a discussion on the needs of America’s entrepreneurs and small business owners during the economic fallout resulting from the COVID-19 outbreak.  

Administrator Carranza and officials from the SBA’s Office of Disaster Assistance will discuss the economic relief efforts underway and resources available to small business owners. Join us for this important discussion.

WHEN: FRIDAY, MARCH 27 at 2:00PM ET

HOW:  Register here

https://register.gotowebinar.com/register/2828954763587844877

Updated March 23, 2020 7:45 PM

The U.S. Senate continues to squabble and fails to move forward on the CARES Act. (Details in last night's post.)

Speaker Pelosi previews her Take Responsibility for Workers and Families Act saying “It gives our small businesses fast relief with grants and loans to tide them through this crisis.  And it strengthens Unemployment Insurance so that it can replace the average wages of our workers who are losing their jobs and hours.” The House is in recess, so Speaker Pelosi would have to call back lawmakers unless the Senate package passes by unanimous consent. Today, all signs are showing that the House will be coming back in session.

NAWBO continues to be your voice in the nation’s capital. Here is a timeline of outreach from the last couple weeks.

March 23, 2020

NAWBO sends letter to U.S. Senate and House Leadership Urging them to act NOW.

March 22, 2020

NAWBO responds to Hill’s request for comment regarding the dates for loan coverage. We recommended expanding the dates, and this was incorporated in the most recent CARES Act.

March 21, 2020

NAWBO signs on to a letter sent to U.S. Senate Small Business and Entrepreneurship Committee discussing small business contracting community concerns.

March 20, 2020

NAWBO, as well as numerous other small businesses, join a call with the President and other members of the Trump Administration.

NAWBO represents WOBs on a call with Department of Labor to discuss the impact of The Families First Coronavirus Response Act. NAWBO listened and made sure all our questions were asked and had a few additions of our own. Our hope is that DOL answers these questions in the regulations and guidance.

March 19, 2020

NAWBO represents women business owners on a call with Maryland Senators Ben Cardin, Ranking Member of the Senate Small Business Committee, and Chris Van Hollen to receive an update on what Congress and the Small Business Administration (SBA) are doing to help Maryland small businesses respond to and recover from COVID-19 as well as provide feedback on how this outbreak is affecting businesses the community.

March 18, 2020

NAWBO signs on to a letter sent to Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi, and Republican Leader McCarthy detailing recommendations submitted by organizations on behalf of the 30 million small businesses. Click here to see text of the letter.

March 17, 2020

NAWBO joins a conference call titled, “Small Business Strategy Session on COVID-19.” The call brought together small business groups, businesses, and organizations that support the small business ecosystem. We discussed issues and priority needs along with the relief activities currently underway to support small businesses and brainstormed ways to facilitate constructive engagement.

March 16, 2020

NAWBO sends memo to U.S. Senate Committee on Small Business and Entrepreneurship, U.S. House of Representatives Small Business Committee, and SBA regarding current COVID-19 impact on women business owners. We shared comments directly from NAWBO members including testimonials and policy recommendations such as moving Tax Day, 0.0% interest loans, delayed mortgage payments, among others.

March 11, 2020

NAWBO CEO Jen Earle sits down with SBA Administrator Jovita Carranza and other members of the Small Business Roundtable. She voiced your concerns regarding how coronavirus is impacting small business.

NAWBO will continue to do its best to track legislation as this crisis continues. Click here for updates. But, as always, to be your best voice, we must hear from you. Please email epatout@nawbo.org with any other comments you want to share with the Hill or the Administration.

Updated March 22, 2020 7:34 PM

Third Coronavirus Bill Fails in Senate

Even after a three hour delay to talk through some more concerns, a 47-47 vote left the Senate 13 votes short of moving forward. The “aye” votes were especially low because five Republicans  are quarantined over coronavirus fears.

The bill includes:

  • $500 billion in loans and loan guarantees to businesses, states, and cities,
  • $350 billion for small businesses that is meant to help prevent more layoffs (this section has broad bipartisan support),
    • This portion includes expanding loan coverage to pay for employee salaries from February 15 to June 30, 2020. (This is win as NAWBO recommended that the March 1st date was too late.)
  • Sending $1,200 checks to many Americans,
  • Bolstering the unemployment insurance system, and
  • Disbursing a broad range of emergency funds to help reinforce hospitals and other areas.

Meanwhile, House Speaker Nancy Pelosi suggested that House Democrats will do their own bill. This would put the House and Senate on different tracks that could delay a final agreement.

Senator Rand Paul Tests Positive for Coronavirus

Senator Rand Paul (R-KY) tested positive this morning for covid-19. Later, Sens. Mike Lee and Mitt Romney announced they would be self-quarantining after having contact with Senator Paul.

Updated March 20, 2020 7:05 PM

Next Vote

Senate Majority Leader has set up the first vote on the next stimulus package over coronavirus for Sunday. The negotiations are focused on four groups: health care, small business, tax and impacted industries like airlines. The bill is expected to cost approximately $1 trillion, though GOP senators didn’t rule out that the number could climb as they negotiate with Democrats.

POTUS Call with Small Business

For those of you who were unable to attend the conference call  with the President this afternoon or RSVP’d after the limit, here is a summary for the remarks. They did not provide a time for questions. Please excuse the brevity as Elle was trying to keep up with the remarks.

President Trump remarks:

  • 10,000 small businesses on the call.
  • Meetings on the Hill are going well.
  • Working with Congress to get money directly to small business.
  • $300 billion directly to our country’s small businesses.
  • Dramatic and immediate expansion of loans, loans will be forgiven.
  • Working with bipartisan members of Congress to work on way to help small business.
  • Emergency declaration in 30 states. Anticipated more declarations and disaster relief to all 50 states and territories.
  • $18 B more dollars for loans.
  • Encouraging payment deferrals of up to 6 months with the banks.
  • Moved tax day to July 15 and encourage people to file for refunds immediately.
  • The American workers paid sick leave will be fully reimbursed with a dollar for dollar tax credit.
  • 50 employees or less will be exempt if it jeopardizes the business.

SBA Administrator Carranza remarks:

  • Thank you President for leadership.
  • SBA Staff is fully telework enabled and in full working order.
  • We’ve cut red tape for Economic Injury Disaster (EIDL) loans up to $2 M dollars.
  • 45 states and Puerto Rico – anticipate all 50 states by Monday will have access to EIDL.
  • EIDL payments are deferred for a year, 6 months for 7(a) loans.
  • SBA is providing flexibility and training for contractors.
  • SBA website had more than 2 M hits per hour and we are expanding are capacity online (working with Microsoft)
  • Continuing to try to find more ways to cut red to get capital into the hands of small businesses.

Labor Secretary Scalia remarks:

  • Small businesses are 50% of the private sector employment.
  • We are removing unnecessary regulatory burden on SB in the Labor Department.
  • Joint employment rule –minimum wage and overtime—easier for small businesses to enter franchising and other contracting relationships.
  • We have been working on guidance to all states about flexibility in their unemployment insurance programs.
  • Wage and Hour Division and FMLA more guidance to come.
  • Prioritizing customer service. Call 1-866-487-9243 (private line) for assistance.
  • Access quickly to paid leave, dollar for dollar reimbursement through tax credit.
  • We will be promptly giving exemptions.
  • Seeking public input and guidance with legislation, 2 hour town hall today (see recap below).

White House Top Economic Advisor Kudlow remarks:

  • We are rolling back regulations.
  • We’re always working to decrease taxes,
  • We have better trade deals, so export will be great after this crisis.
  • We want to help the workforce and employees with unemployment insurance and checks for people.
  • We are working to try to defer payroll taxes, income taxes, and corporate taxes.
  • Guaranteed loans to small business to get through next 7 weeks.
  • Expensing for equipment, improving buildings, net operating losses.

Department of Labor Call

This morning, Friday March 20th, DOL held a conference call at 10 AM ET on The Families First Coronavirus Response Act (FFCRA). NAWBO was represented on the call by Elle Patout. DOL read through the legislation and then took questions. None of the questions were responded to during the call. However, DOL will be taking them into consideration as they write the guidance and regulations for the law. Numerous questions were asked, but some of the highlights include:

  • What is the definition of jeopardizing the viability of the business?
  • The condition for employers with under 25 employees appears to require that you make “reasonable efforts” to reinstate the employee to a similar position – what are “reasonable efforts”? What if all similar positions have been eliminated other than one – and that position is filled.  Is that a condition? Or must an employer keep a position available?
  • The two-week paid sick leave provision - Does this run concurrently with the 12-week FMLA? Or consecutive?

Our hope is that DOL answers these questions in the regulations and guidance.

SBA Call Cancelled

We will be in touch ASAP when the call with SBA Administrator will be rescheduled. We hope to have it rescheduled in the next 3-5 days.

Other Democrat Plans

  • Schumer, Murray, Brown, Warren

Beyond the Senate Small Business Committee Democrats’ plan to help during this crisis, Senators Chuck Schumer (D-NY), Patty Murray (D-WA), Sherrod Brown (D-OH), and Elizabeth Warren (D-MA). The Senators’ proposal requires that Congress authorize the U.S. Department of Education to make monthly student loan payments on behalf of borrowers, equivalent to the amount due for all federal student loan borrowers (including Direct Loans and Federal Family Education Loans (FFEL)) for the duration of the national emergency declarations. The Senators’ proposal guarantees a minimum $10K loan payoff for all federal student loan borrowers. The summary can be found here.

  • House Dems

In addition, House Democrats introduced H.R. 6312, the COVID-19 RELIEF for Small Businesses Act of 2020. There are some similarities between the House and Senate Democrat Small Business plans. The House plan includes items such as:

  • Create a new grant to award up to $100,000 to small businesses that can demonstrate losses due to the outbreak.
  • Create the Small Business Relief Guaranteed Loan Program which would:
    • provide small business owners capital to pay off or refinance existing debt, provide employee benefits, pay employee wages and related taxes, and acquire technological and other resources that enable continuity of operation;
    • support $100 billion worth of 100 percent guaranteed, zero interest, zero fee loans of up to $2.5 million each with 10-year terms and repayment deferred for the first year;
    • inject money into the economy quickly by mandating that 20 percent of the proceeds be disbursed within 5 calendar days after approval; and
    • forgive up to 50% of the loan after December 31, 2021 if the borrower has retained the same number of employees as when they received the loan.
  • Cardin, Wyden Bill                                                                                                     

The Save America’s Main Street Act would provide immediate cash flow through a tax rebate:

  • Qualifying small businesses with $1 million or less in gross receipts and 50 or less employees will receive a check equal to 30% of the gross receipts reported in a previous year, up to $75,000.
  • Delay estimated tax payments for small business owners until September. One page summary found here.
  • ​​Brown Bill

Also, this week, Senator Sherrod Brown ranking member of the U.S. Senate Committee on Bank, House, and Urban Affairs introduced new legislation that would among many things halt foreclosures.

NAWBO will continue to do its best to track legislation as this crisis continues. But, as always, to be your best voice, we must hear from you. Please email epatout@nawbo.org with any other comments you want to share with the Hill or the Administration.

Updated March 20th 12:06 PM

Call with SBA Administrator POSTPONED. We will report back when the call is rescheduled. 

Updated March 19th 10:16 PM

The Senate did not have any votes today.

McConnell Introduced the Third Coronavirus Package

Leader McConnell announced that Senate Republican have an agreement re: the third coronavirus package. The Coronavirus Aid Relief and Economic Security (CARES) Act includes:

  • Increasing the SBA 7 (a) loan amount to $10 million and expands the use of the 7 (a) program to include payroll, such as paid sick or medical leave, employee salaries, mortgage payments, and any other debt obligations. Moreover, it gives lenders the ability to make determinations on borrower eligibility and creditworthiness without the normal SBA hoops with the 7 (a) program. In addition, the lenders will determine whether a business was operational on March 1, 2020 and had employees for whom it paid salaries and payroll taxes.  Side note—you would not be able to receive a 7 (a) loan and an SBA economic injury disaster loan for the same purpose, i.e. payroll.
  • Provides loan forgiveness in an amount equal to payroll costs and costs related to debt obligations for March 1, 2020 through June 30, 2020. The loan amount eligible for forgiveness will be reduced proportionally to the number of employees laid off during this period relative to the borrower’s prior employment levels.
  • Extends the April 15th filing date to July 15th, giving individuals more time to file their tax returns.
  • Waives 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts for coronavirus-relate purposes.
  • Allows employers and self-employed individuals to defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. 

Senate Small Business Committee Democrats COVID-19 RELIEF for Small Businesses Act of 2020

Senate Small Business Committee Democrats pushed out their plan for small businesses today. Here are some of the highlights:

  • A new grant program to award up to $50,000 to small businesses with between 2 and 50 employees that are denied Economic Injury Disaster Loans(EIDL). (This is modeled after the process for businesses and homeowners after a natural disaster. They go to FEMA for grants after they are denied a loan through the SBA.)
  • Immediate relief to small businesses with SBA-backed loans by providing relief from SBA loan payments, including principal, interest, and fees for six months.
  • Allow small businesses already approved for an EIDL to borrow an additional 20 percent beyond what they have been approved for to pay for business continuity and resilience improvements, including establishing telework capability and implementing off site record keeping, among other measures.
  • A temporary direct loan program, the Business Stabilization Direct Loan Program provide capital, supporting $100 B worth of zero interest, zero fee loans of up to $2.5 million with repayment deferred for the first year and they would forgive up to 50% of the loan after December 31, 2021 if the borrower has retained the same number of employees as when they received the loan.
  • Help for federal contractors such as extending contract performance time by 30 days to small businesses affected by COVID-19 and require the Federal government to pay small business contractors and revise the delivery schedules, holding small contractors harmless for being unable to perform under a contract.

I will continue to keep you posted on developments and let you know about what ends up being in the final package for Coronavirus Bill #3.

POTUS Conference Call with Small Business

Participate in a conference call with the President, tomorrow, March 20, 2020 at 3:45 PM EST. Please register via the link below. Call in information will be received upon registration.

RSVP LINK: https://ems9.intellor.com?do=register&t=1&p=901338

*Please note this call is intended for Small Businesses. Due to capacity restrictions, please limit registration to 1 line per small business.

Friendly Reminder:

Want to hear more from the SBA on Coronavirus?
Administrator Carranza and the Office of Disaster Assistance will be on a call to discuss their response and available resources. The call will be at 2:30 PM ET on Friday, March 20th.

Interested in joining? Register here: https://register.gotowebinar.com/register/637285041691413261

Can’t join, but have comments? Please email epatout@nawbo.org.

Updated March 18th 9:15 PM

Small Business Roundtable Sends Letter to Congressional Leadership on Coronavirus Response

As Congress considers a stimulus package, NAWBO signed on to a letter sent to Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi, and Republican Leader McCarthy detailing recommendations submitted by organizations on behalf of the 30 million small businesses. Click here to see text of the letter.

POTUS Signs H.R. 6201

This evening POTUS signed H.R. 6201, Families First Coronavirus Response Act. The deal negotiated by Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi.

Senate passed H.R. 6201 in a 90-8 vote. Eight Republicans voted against the bill: Sens. Marsha Blackburn (Tenn.), James Inhofe (Okla.), Ron Johnson (Wis.), James Lankford (Okla.), Mike Lee (Utah), Paul, Sasse and Tim Scott (S.C.). Senator Tim Scott explained in no vote when he said, “The COVID-19 package passed by the U.S. Senate today, while well-intentioned, could have disastrous effects for South Carolina’s small businesses and their employees.”

The Joint Committee on Taxation estimates this second package will cost $104 billion. The bill requires companies with fewer than 500 employees give workers 12 weeks of paid family and sick leave to deal with virus-related issues, including staying home to care for children whose schools are closed. The paid leave per employee has a cap of $200/ day and $10,000 in total.

Next Steps
Next, Senate Republicans will start negotiating with the Administration on a third coronavirus package, according to Majority Leader McConnell. Leader McConnell has put together four task forces to draft and negotiate the package: health, tax, small business, and industry bailout.

Minority Leader Schumer said he has spoken to Secretary Mnuchin about his $750 billion proposal.

Want to hear more from the SBA on Coronavirus?
Administrator Carranza and the Office of Disaster Assistance will be on a call to discuss their response and available resources. The call will be at 2:30 PM ET on Friday, March 20th.

Interested in joining? Register here: https://register.gotowebinar.com/register/637285041691413261

Can’t join, but have comments? Please email epatout@nawbo.org.

As always, please email epatout@nawbo.org with any other comments you want to share with the Hill or the Administration.

Updated March 17th 9:52 PM

Coronavirus Legislation Timeline

1.First Action: Respond to the Virus

On Friday, March 6th, POTUS signed the Coronavirus Preparedness and Response Supplemental Appropriations Act 2020. This bill provided $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak. These programs funded by the bill addressed issues such as developing vaccines, loans for small businesses and grants for state, local, and tribal public health agencies.

2.Second Action: Combat the Effects of the Virus

On Saturday, March 14th, the U.S. House passed H.R. 6201. This bill response to the coronavirus outbreak by providing paid sick leave, coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers. However, the measure was brought back to the House Monday, March 16th to work out some technical changes, which included that paid family and medical leave would now only be available to parents who need to care for children whose schools or care facilities are closed due to the coronavirus.

While members claim these were technical changes, in reality it seems that effective lobbying on behalf of small businesses was the real reason for these changes (the technical changes were 87 pages).

This bill is sitting with the Senate. Since it has not passed by unanimous consent, we expect that the Senate will make changes to the legislation, so then, it will have to go back to the House for a vote. However, the situation is very fluid. This afternoon, Leader McConnell said he expects that the Senate will pass the House’s second version which includes the technical changes.

3.Third Action: Additional Resources To Be Determined

Some lawmakers want a third economic package. Senate Minority Leader Charles Schumer (D-N.Y.) is set to unveil a plan with at least $750 billion to fight the coronavirus and its economic impact.

The Trump Administration is seeking roughly $850 billion in economic stimulus and is leaning toward a plan that would send checks to American in the coming weeks.

Sen. Mitt Romney (R-Utah) proposed sending every American adult a $1,000 grant, akin to checks issued during the 2001 and 2008 recessions.

Sen. Tom Cotton (R-Ark.), a staunch fiscal conservative, is rallying support for expanded unemployment and food aid benefits among Republican colleagues.

 

Next Steps

Click here to find a template letter you can send to your governor regarding the small business concerns with the coronavirus pandemic.

Please email epatout@nawbo.org with any other comments you want to share with the Hill or the Administration.