Chamber Members:
Below you will find the usual Thursday update with the jobs report. In addition, we have some breaking news if you have not already heard. We sit 8 days away from government funding running out, and there’s a positive outlook being shared in the House and Senate that Congress will be able to put together a full year of spending bills in time for the December 11 funding date. A short-term spending bill is becoming more likely and one thing being talked about is extending government funding until March. This may coincide with an expiration date of potential covid relief, setting up a big target for President elect Biden and how his administration will work with the House and Senate on two big items.
*Daily Coronavirus update brought to you by Silver Cross Hospital
The Latest on Federal Aid Negotiations
Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell held talks today about reaching a COVID-19 relief deal before Christmas, with both expressing a desire to quickly pass legislation, according to a senior aide to Pelosi.
“The Speaker and Leader McConnell spoke at 12:45 p.m. today by phone about their shared commitment to completing an omnibus and COVID relief as soon as possible,” Drew Hammill, a spokesman for Pelosi, said Thursday afternoon.
Earlier in the day, Pelosi told reporters “we will have an agreement” on coronavirus package funding by Dec. 11, the date government funding is set to expire. McConnell told reporters Tuesday that additional COVID-19 relief funding would likely be added to the expected $1.4 trillion omnibus spending package that would fund the federal government beyond Dec. 11 through fiscal 2021, which ends on Sept. 30.
Shortly before that conversation, McConnell met with a group of Senate Republican moderates who support a compromise $908 billion coronavirus relief bill that would include $160 billion in funding for state and local governments, a sticking point for many conservatives, including McConnell.
President Trump said he would sign a coronavirus relief package if Congress can broker a deal in the final weeks of the year after months of gridlock. “I want it to happen, and I believe they’re getting very close to a deal,” Trump said in the Oval Office. Asked if he will support a deal, Trump replied, “I will.”
President-elect Joe Biden swung behind a bipartisan COVID19 relief effort Wednesday. Biden said the developing aid package “wouldn’t be the answer, but it would be the immediate help for a lot of things.” He wants a relief bill to pass Congress now, with more aid to come next year.
What’s in the $908 Billion Bipartisan Plan
The plan introduced by “The Problem Solvers Caucus,” a group of 25 Democrats and 25 Republicans in both the U.S. Senate and House, splits the more than $900 billion to 15 different areas.
A majority goes to three areas:
- $288 billion for small businesses, including more fund for the Paycheck Protection Program
- $180 billion for additional Unemployment Insurance
- $160 billion for state, local, and tribal governments
Small businesses
The Paycheck Protection Program will get another round of funding. The forgivable loans to keep workers on payroll closed applications in August.
The $288 billion also will help fund the Economic Injury Disaster Loan program, a low interest loan from the Small Business Administration ” designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to coronavirus.”
The money will also go to restaurants and deductibility. In addition, Republicans pushed for “short term Federal protection from Coronavirus related lawsuits.”
“Included in this measure is a liability provision that provides a temporary suspension of any liability-related lawsuits at the state or federal level associated with COVID-19, giving states enough time to put in place their own protections,” said Sen. Mitt Romney.
State, local, and tribal governments
Democrats, meanwhile, got a win with funding for state, local and tribal governments. State governments have been dealing with many key aspects of the COVID-19 response.
“If enacted into law, today’s bipartisan package would increase unemployment benefits to help families make ends meet, give essential assistance to small businesses on the verge of closing, provide funds to the state and local governments who’ve led the response to this crisis, and much more – including support for schools, hospitals, and vaccine distribution,” said Sen. Angus King, an independent who caucuses with the Democrats.
Unemployment insurance
Extended federal unemployment benefits expired in September. Previously, the program added a $600 federal benefit. This plan would provide a $300 weekly addition for four months.
Stimulus checks?
No, the plan doesn’t include the second round of economic impact payments. Earlier in the year, the IRS issued 160 million checks of $1,200 per eligible taxpayer, plus $500 per child.
The rest of the funds will go to support
- $82 billion for education
- $45 billion for transportation, including airlines, airports, buses, transit, and Amtrak
- $35 billion for the Healthcare Provider Relief Fund from the Department of Health and Human Services
- $26 billion for nutrition and agriculture
- $25 billion for housing assistance, related to rentals
- $16 billion for vaccine development and distribution, testing and contact tracing
- $12 billion for Community Development Financial Institutions and Minority Depository Institutions
- $10 billion each for the U.S. Postal Service, childcare and broadband
- $5 billion for opioid treatment
- $4 billion for student loans
Weekly Job Report
The number of Americans applying for unemployment benefits fell as the nation celebrated Thanksgiving last week to a total of 712,000. Thursday’s report from the Labor Department said that initial claims for jobless aid dropped from 787,000 the week before.
The total number of people who are continuing to receive traditional state unemployment benefits declined to 5.5 million from 6.1 million. That figure is down sharply from its peak of nearly 23 million in May. It means that some jobless Americans are finding jobs and no longer receiving aid. But it also indicates that many of the unemployed have used up their state benefits, which typically expire after six months.
The number of people collecting aid under the Pandemic Unemployment Assistance program, which offers coverage to gig workers and others who don’t qualify for traditional benefit, fell by 339,000 to 8.9 million for the week ending Nov. 14.
But the number of people receiving aid under another program, the Pandemic Emergency Unemployment Compensation program, which provides 13 weeks of federal benefits to people who have exhausted their state aid, rose by 60,000 to 4.6 million.
All told, roughly 20.2 million people are now receiving some type of unemployment aid. (Figures for the two pandemic-related programs aren’t adjusted for seasonal variations.)
Obama, Clinton, Bush say they’d get a COVID-19 Vaccine Publicly
Three former presidents say they’d be willing to take a coronavirus vaccine publicly, once one becomes available, to encourage all Americans to get inoculated. Former President Barack Obama said during an episode of SiriusXM’s “The Joe Madison Show” airing Thursday, “I promise you that when it’s been made for people who are less at risk, I will be taking it.”
“I may end up taking it on TV or having it filmed, just so that people know that I trust this science,” Obama added.
That may not be possible for the foreseeable future, though. The Food and Drug Administration will consider authorizing emergency use of two vaccines made by Pfizer and Moderna later this month, but current estimates project that no more than 20 million doses of each vaccine will be available by the end of this year. Each product also requires two doses, meaning shots will be rationed in the early stages.
Health care workers and nursing home residents should be at the front of the line, the Advisory Committee on Immunization Practices, an influential government advisory panel, said earlier this week. That encompasses about 24 million people out of a U.S. population of around 330 million.
Still, former President Bill Clinton would “definitely” be willing to get a vaccine, as soon as one is “available to him, based on the priorities determined by public health officials,” spokesman Angel Ureña said. “And he will do it in a public setting if it will help urge all Americans to do the same,” Ureña said in a statement Thursday.
Former President George W. Bush’s chief of staff, Freddy Ford, told CNN that the former president recently asked him to meet with Dr. Anthony Fauci, the nation’s top infectious disease expert, and Dr. Deborah Birx, the White House coronavirus response coordinator, to let them “know that, when the time is right, he wants to do what he can to help encourage his fellow citizens to get vaccinated.”
Medicaid Enrollment Surge During Pandemic Leaves States Looking for Cost Cuts
State leaders are weighing possible cuts to Medicaid services and health-care benefits to offset rising costs due to a surge of enrollees who have lost jobs and need health coverage as the coronavirus pandemic has intensified.
Congress boosted federal matching funds to states for Medicaid as part of its first coronavirus relief package, but many states are still struggling to afford the increasing pace of sign-ups in the program for low income and disabled people. Enrollment for the fiscal year ending Sept. 30, 2021, is expected to jump 8.2%, with state spending accelerating by 8.4%, compared with 6.3% growth in the previous fiscal year, based on data from 42 state Medicaid directors compiled by the Kaiser Family Foundation.
Medicaid has grown to become one of the largest portions of state budgets, from about 21% in fiscal 2008 to about 30% in fiscal 2018, according to the National Association of State Budget Officers.
State leaders working on budgets that must be finalized in July are confronting budget crises. Tax revenues have tumbled since March because of restrictions on businesses, social distancing and high unemployment related to the pandemic, economists have found. Most states have constitutional or statutory requirements that they maintain balanced budgets.
Some state leaders may try to narrow the gap between the revenues they need to balance the budget and the shortfalls they face by cutting vision and dental benefits, or payments to doctors and other providers. Cuts to other programs, such as education, could also be in the mix.
The federal government picks up 90% of the cost for people covered under the Affordable Care Act’s Medicaid expansion, but it matches state expenditures for other beneficiaries in the program. Under pandemic legislation, states have been getting a 6.2 percentage-point increase in federal funds that match state expenditures on the program.
Under the public-health emergency declared this year, the extra provisioning expires at the end of March 2021. Some states and advocacy groups lobbying Congress say the increase falls far short of what states need.
“Increasing the federal medical assistance percentage to help cope with increases in Medicaid costs for states is among the top issues we’ve been hearing from governors during the pandemic,” said James Nash, a spokesman for the National Governors Association.
Nationwide, the U.S. state budget shortfall from 2020 through 2022 could amount to about $434 billion, according to data from Moody’s Analytics. The estimates assume no additional federal fiscal stimulus, further coronavirus-related restrictions on business and travel, and extra costs for Medicaid amid high unemployment.
Program Notices & Reminders
Village of Shorewood Announces CARES Small Business Relief Program – Deadline to apply is this Friday, December 4th!
The goal of the Shorewood CARES Small Business Relief Program (“Program”) is to provide financial support for the most impacted Shorewood small businesses in order to support their continued success as they navigate the coronavirus pandemic into 2021. Providing a monthly reimbursement for payroll and rent/mortgage (two of the most expensive operating costs) through this Program will ensure that business owners are not only able to keep the business open but also to focus on the future of their business. This Program coupled with the 2021 Business Fee Waivers are intended to encourage business owners to look to the future and set the stage for a successful new year.
Learn more about the program by clicking here – http://vil.shorewood.il.us/business/COVID-19/shorewood_cares.aspx
ComEd Bill Assistance
Small-business customers can visit ComEd.com/SmallBizAssistance or call 1-877-4-COMED-1 (1-877-426-6331) to learn more or apply for the Small Business Assistance Program.
ComEd’s bill-assistance programs also include flexible payment options for residents, financial assistance for past-due balances and usage alerts for current bills. Any customer who is experiencing a hardship or difficulty with their electric bill should call ComEd immediately at 1-800-334-7661 (1-800-EDISON-1), Monday through Friday from 7 a.m. to 7 p.m. to learn more and enroll in a program.
Business Interruption Grant
Funds still remain and the program is still open for application. Please visit:
https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/C19DisadvantagedBusGrants.aspx
SBA EIDL
Low-interest Economic Injury Disaster Loans (EIDLs) from the U.S. Small Business Administration (SBA) are still available to Illinois small businesses, small agricultural cooperatives, small aquaculture businesses and private nonprofit organizations.
The SBA has opened a Virtual Business Recovery Center to apply online using the Electronic Loan Application via the SBA’s secure website at https://DisasterLoanAssistance.sba.gov/. Business owners and residents should contact the SBA Customer Service Representatives at
(800) 659-2955 for assistance in completing their applications. Requests for SBA disaster loan program information may be obtained by emailing FOCE-Help@sba.gov.
Tell Congress to Make PPP Loans Deductible – Call to Action
The Paycheck Protection Program Flexibility Act of 2020, or PPP, was passed in order to provide small businesses across the United States crucial relief during widespread government shutdowns due to the COVID-19 pandemic. These loans can be forgivable when proceeds are used for payroll, rent, mortgage interest and utilities. Congressional leaders intended for PPP funded expenses to be deductible like other business expenses.
Despite the intent of Congressional leaders, additional legislation is needed to make PPP funds used to pay business expenses deductible. The failure to allow these deductions will have a devastating impact on small businesses struggling to keep their doors open and retain their employees.
Are you a small business owner who thought salary and expenses paid by PPP loans would be deductible? In partnership with the Small Business Advocacy Council (SBAC), we’re asking you to please contact your Congressional leaders and ask them to sponsor and strongly advocate for legislation that makes salary and other businesses expenses paid for by a PPP loan deductible!
You can contact your Senators and House Representative here: https://oneclickpolitics.global.ssl.fastly.net/messages/edit?promo_id=10057
See below for two articles for further information / aid on PPP forgiveness and deductibility
7 Resources for PPP Loan Forgiveness Help
Will You Owe Taxes on Your Paycheck Protection Loan?
https://www.uschamber.com/co/run/finance/tax-implications-of-paycheck-protection-loans
SBDC at JJC Update
Here is a list of upcoming programs delivered from the Small Business Development Center through Joliet Junior College:
Funding Your Business
Date: 12/8/20
Time: 4:00 PM – 5:00 PM (CST)
Funding your business is critical for start-ups as well as companies who are looking to expand. Establishing business credit is the first step. Get a basic understanding of what banks look for to qualify for a loan from Nancy Kuzma of Old Plank Trail Community Bank/Wintrust Community Bank. https://ilsbdc.ecenterdirect.com/events/33653
Video Marketing for Small Business
Date: 12/10/20
Time: 4:00 PM – 5:00 PM (CST)
Video production once meant bringing in a full production crew to produce a television commercial. Now, a child can produce a quality video on their phone. And that video is a very important component to your website, social media pages, product information, as well as your local advertising. Learn the benefits of video marketing and hear from Mike Puglitsch at Acclaim Media about how easy the process can be. https://ilsbdc.ecenterdirect.com/events/33572
Website Development
Date: 12/15/20
Time: 3:00 PM – 4:00 PM (CST)
A website is more than just a placeholder to occupy property in cyberspace. Your website should be the central point that your social media, SEO, email marketing, pay per click ads, content, CRM…. orbit around to generate business for your business. Join Jason McCoy from WSI to discuss how to develop a website that meets your needs. https://ilsbdc.ecenterdirect.com/events/33652
21 Topics in 21 Minutes for 2021 Growth
Date: Scheduled one-on-one session
In less than 30 minutes, the Illinois Small Business Development Center at Joliet Junior College will help you prioritize key 2021 business plans whether it is for your people, your product, your marketing, your sales, your money or the impact of this crisis. In this short, one-on-one exercise, we will help you determine up to three of the biggest opportunities for growth in the year ahead. We will offer no-cost tools to develop your strategy for success in those areas. Email us at SBDC@JJC.edu and we will send you a link for registration.
Business Services Webinar from the Workforce Center of Will County
Join this Webinar to learn how the Workforce Center can assist your business with resources you need to find, hire, and retain hard-working employees.
Wednesday, December 9, 2020 from 8:30 a.m. – 9:30 a.m.
To register for the webinar please click on the link below:
Finally, we will host our next Virtual Conference on Thursday, December 10th.
Town Hall Meeting – A follow up on the last 6 months
Please join the Joliet Chamber for an interactive virtual conference with community leaders from various business sectors including education, healthcare, and governmental affairs, for a follow-up conversation to the last Town Hall Meeting.
Panel of Speakers will include Dr. Arvid Johnson from the University of St. Francis, Ruth Colby from Silver Cross Hospital, Sue Olenek from the Will County Health Department, Barry Kolanowski from Senior Services Center, and Mike Paone from the Joliet Chamber. Here is the link to register: http://jolietchamber.chambermaster.com/events/details/2020-webinar-december-10-town-hall-meeting-5978
Stay well,
Joliet Region Chamber of Commerce & Industry Staff and Board of Directors
Mike Paone
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct