The below update is from the National Association of Wholesaler-Distributors.
Latest on the Main Street Lending Program
There is still no official guidance from the Fed on when the MSLP will be stood up. Of note on this matter: we reported yesterday on the less-than-detailed Mnuchin and Powell testimony before the Senate Banking Committee. In today’s Wall Street Journal, the editorial board was sharply critical of Secretary Mnuchin for his handling of these critical issues and suggests that he is declining to take decisive action because he is “too willing to bend to Democrats who want to use the business relief to attack the Trump Administration.”
To read their editorial, significantly headlined Treasury Secretary Warren, go to: https://www.naw.org/wp-content/uploads/2020/05/WSJ-May19.pdf
Latest on the Paycheck Protection Program
There will be a vote next week in the House on a bi-partisan bill to provide needed flexibility on forgiveness of PPP loans. The bill, co-sponsored by Chip Roy (R-TX) and Dean Phillips (D-MN), includes significant changes to loan forgiveness requirement, including extending loan term maturity, extending to 24 weeks the time during which a loan must be spent, extending the June 30 date to December 31, and prohibiting the Administrator from imposing the 75% payroll ratio.
This bill has broad support, and NAW is working with our association allies and the Congressmen’s offices to build more support for it. The odds of success remain unknown, however, largely because it is the first narrowly-focused bill on which the Speaker has agreed to allow a vote and, according to news reports, she agreed to allow this vote in the process of horse-trading for votes last week on her $3 trillion package. Her commitment to its successful passage is therefore unknown.
To read the text of the 3-page bill, go to: https://www.naw.org/wp-content/uploads/2020/05/ROYTX.pdf
To read a Politico newspaper story on this legislation and the process by which it is expected to be brought up for a vote next week, go to: https://www.naw.org/wp-content/uploads/2020/05/Politico-Pelosi-Moving.pdf
Today, Speaker Pelosi formally authorized a 45-day period during which House Members can cast votes remotely due to the coronavirus pandemic. Under the historic rules changes that the House adopted last week, Speaker Pelosi has invoked the authority to allow remote voting after receiving a notification from the sergeant-at-arms in consultation with the Capitol physician that there is a public health emergency due to the coronavirus.
After this week, the Senate is not expected to return for legislative business until Monday, June 1.
Resources for Employers
The Centers for Disease Control and Prevention (CDC) has released a more detailed guidance for schools, businesses, transit systems and other industries hoping to re-open safely amid the coronavirus pandemic.
The 60-page document provides specific instructions for different sectors to detect and trace the virus based on exposure and risk after the pandemic.
To read the full document, go to: https://www.cdc.gov/coronavirus/2019-ncov/downloads/php/CDC-Activities-Initiatives-for-COVID-19-Response.pdf
Latest on Re-Opening the Economy
With state and local governments gearing back up to re-open the economy, many employers are seeking answers to the challenging issues they will face as they resume their business operations amidst COVID-19.
Yesterday, President Trump signed an Executive Order directing agencies not to over-enforce when a business is working in good faith to follow the law. This discretion will especially benefit small businesses, who are fighting to recover from the impact of this pandemic. The President’s order establishes a “Regulatory Bill of Rights,” a set of 10 basic principles of fairness to govern the administrative enforcement and adjudication process. These principles will help give businesses the confidence they need to invest and grow as we recover as a nation.
To read the full Executive Order, go to: https://www.whitehouse.gov/presidential-actions/executive-order-regulatory-relief-support-economic-recovery/
The New York Times ran a story today on the vast discrepancies in how states are deciding to re-open.
To read the full story, go to: https://www.naw.org/wp-content/uploads/2020/05/NYT-All-50.pdf
Stateside Associates publishes a daily report about State and Local Government responses to the evolving situation. Some of the new developments in today’s report include:
- Hawaii Governor David Ige (D) has unveiled the re-opening and recovery plan for the State of Hawaii — a strategy that conveys the coordinated, statewide approach to jump-starting the economy and recovery from the COVID-19 crisis.
- Michigan Governor Gretchen Whitmer (D) has temporarily imposed more enhanced restrictions on the excessive pricing of goods, materials, emergency supplies, and consumer food items. EO 2020-53 extends this order until May 15 and strengthens restrictions.
- New Hampshire Governor Chris Sununu (R) has extended the declared State of Emergency until June 5.
We are also providing a link to a spreadsheet that includes state and local COVID-19 response information provided by MultiState Associates.
Jade West, Chief Government Relations Officer
Blake Adami, Vice President-Government Relations
Seth Waugh, Associate Vice President-Government Relations
National Association of Wholesaler-Distributors
The above information and links to other information has been prepared by NAW for the general information of NAW members. It is not intended to, and does not, provide tax, legal or professional advice concerning any specific matter. You should not act on the information without first obtaining professional advice and counsel.