We are halfway through the week. Today’s update will focus on three things – P4 details, Governor rollback on sports (and other threats), and the impending expiration of the bonus unemployment payments.
First, here is what has shown up in the bill for the Prioritized Paycheck Protection Program or “P4.”
Senator Rubio and Senator Collins have put together bill language outlining the P4 proposal. This is a quick summary.
Here is a link to the full bill: https://www.rubio.senate.gov/public/_cache/files/49aef1eb-2397-4200-8011-17bd4b35ad10/55738B7798C596512E3B9002EA0A23CC.continuing-small-business-recovery-and-paycheck-protection-program-act—mir20e14.pdf
Here is a link to the summary: https://www.rubio.senate.gov/public/_cache/files/20f62534-9e98-4d28-9c28-8f36ad06444b/02741A2731C1AA4D4EBA0287B6E0DE49.continuing-small-business-recovery-and-paycheck-protection-program-act-section-by-section-final-updated-1-.pdf
Both are attached to this email as well. Now, we will see what will be negotiated out of this version as compared to the Democrat version in the HEROES Act.
- Applies to organizations of 300 or fewer employees
- Must still show quarterly loss of revenue of 50% or more (1st or 2nd quarter) as compared to same quarter in 2019
- Removes the $500,000 max loan and goes back to a maximum amount of $2 million
- Makes sure smallest and disadvantaged business have equal access to funds
- $25 billion set aside to companies with 10 or fewer employees
- Program introduces $190 billion in new funds
- Reauthorize program through the end of 2020
- Simplify the application process for loans under $150,000
- Makes available a “second draw” for those that have received PPP funds already
- Retains the 2.5 x average monthly payroll figure for loan amount
- Expenditure process remains at 8 to 24 weeks, but now allows borrower to select the specific time period now, enabling borrowers to cut off the testing period before making a reduction in workforce that would cause the applicable reduction in workforce penalties
- Expand the use of non-payroll items (40% use for forgiveness) beyond rent, utilities, and interest to include the following:
- Covered operations expenditures. Payment for any software, cloud computing, and other human resources and accounting needs.
- Property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
- Covered supplier costs. Expenditures to a supplier pursuant to a contract for goods that was in effect prior to February 15, 2020 that are essential to the recipient’s current operations.
- Covered worker protection expenditure. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines related to COVID-19 during the period between March 1, 2020, and December 31, 2020.
It is noteworthy that the costs of hiring lawyers and accountants to understand these rules and to assure that applications and compliance is proper is still not a permitted expense. This bill also includes additional 501c organizations. To date, only a few have been allowed to receive funds.
The Senate bill would also authorize $100 billion in long-term, low-cost loans to help small businesses and seasonal businesses in lower-income areas (according to census data) recover. They would be available to employers with no more than 500 employees that can demonstrate a 50% reduction in gross revenues and meet the applicable SBA revenue size standard. Loans would be available up to twice the borrower’s annual revenue, capped at $10 million. The loans would have a 100% SBA guarantee, and a maturity of up to 20 years with a 1% fixed interest rate.
Expiration of Unemployment Insurance Bonus
White House chief of staff Mark Meadows today remarked that added unemployment benefits will formally expire on Friday as negotiators appear to be struggling to make any progress toward a bipartisan deal. As drafted, the benefit is set to officially expire Friday, but because of the calendar and how most states disperse unemployment benefits they actually began to expire last Saturday.
State Limits on Sports
Governor Pritzker today put a halt to much of the fall schedule for school and park district youth sports and adult amateur athletic leagues. IHSA now has also released its tentative schedule according to the new state guidelines, and it indeed is going to be a pretty slim fall, sports-wise. Only golf, tennis and some cross country and aquatic events are now set to go ahead. Higher-risk sports, such as football, volleyball, and soccer, have been kicked from the autumn to spring. (College and pro sports are exempt from the new rules.) Pritzker laid out overall guidelines that go into effect on Aug. 1 and Aug. 15.
In general, noncontact sports such as tennis and baseball will be able to proceed, including with games, though in front of a minimal number of spectators. But basketball teams will be limited to scrimmages, and football and lacrosse will not be allowed to compete in games or to practice in contact.
Inserted into the highest-risk category, with the most limits on what can occur, were competitive boxing, football, hockey, lacrosse, martial arts, and wrestling, among other sports.
Included in the least-restrictive bracket are baseball, softball, bowling, cross country, and swimming, though all athletes must keep a minimum of 6 feet apart.
In the middle category are basketball, soccer, and volleyball, among others.
Each risk category can compete at one of four play levels, depending on the latest medical statistics and the amount of physical contact that occurs in the sport.
At the moment, all teams can hold noncontact practices, according to guidelines laid out on the state’s website, but none will be allowed to hold games or matches outside of their conference or out of state. Some games will be allowed for sports in the lowest-risk category.
Further Threat of Expanded Limits
The governor also ramped up his language in discussing the possibility that the state’s economic reopening may be partially reversed. He warned that a wider pullback, including again shutting bars and restaurants, could be coming soon.
With positivity rates among those tested having increased from 2.4% at the end of June to 3.8% as of today, “the numbers are not headed in the right direction,” Pritzker said, adding that huge spikes among states in the South and West indicate how badly figures can turn if officials let up too early.
Virtual Conference Tomorrow
Our next conference will take place this Thursday, the 30th at 11:00 AM. The title is “Challenge Accepted! Now What Questions to Ask…”
Please join the Joliet Chamber for a free, interactive virtual conference with Annette Szobar, Independent Associate with LegalShield to help you navigate potential legal concerns caused by COVID-19. Learn what questions to ask and where to find the answers.
- Can you ask employees to get tested for COVID-19?
- What are your obligations to protect your employees?
- Are there any new laws around altering your paid sick leave policy?
Finally, here is an extremely short survey on a topic that can have some scrambling at the end of the year. The State of Illinois has mandated sexual harassment training and we are interested in hearing how many organizations have complied so far and for those that have not, what the interest would be in a group training. We look forward to your responses: https://www.surveymonkey.com/r/6F782PV
Joliet Region Chamber of Commerce & Industry Staff and Board of Directors
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry