COVID-19 Legislative Updates: Roundup of Federal, State, and Local Actions

As the COVID-19 public health crisis evolves, your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Thursday, April 16, 2020.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

We also have a COVID-19 Information Hub with up-to-date resources to support your business.

• 1.1 million loan applications to the Paycheck Protection Program (PPP) have been approved, totaling more than $260 billion through 4,700 lending institutions.
• Congressional leaders are warning that the program could become depleted by the end of this week and have called for an additional $250 billion to replenish the program.
• A CARES Act II is in development and is expected to provide more aid for small businesses, expand unemployment benefits, and make additional direct payments to individuals.
• The Chamber together with more than 50 regional local Chambers urge expansion of eligibility under PPP to include 501(c)6 organizations to benefit the work and staff of local chambers.
• The Chamber continues to advocate for a balanced approach to the next phase of stimulus and has held a number of virtual meetings to make the regional congressional delegation available to our members.

• The Pennsylvania General Assembly voted to approve Senate Bill 613 to require the Wolf Administration to develop a plan to allow businesses to reopen if they follow federal safety guidelines as outlined by the CDC and CISA.

• The state House also voted unanimously to concur with the state Senate on SB 841 regarding the COVID-19 crisis’ impact on local government.

• Pennsylvania will receive over $104 million in emergency education block grants.

• PENNVEST approved a $450 million emergency loan program to assist financially distressed hospitals. Hospitals will be eligible to apply for low-interest loans of up to $10 million under the Hospital Emergency Loan Program (HELP). 

• The Department of Revenue is waiving the business tax prepayment requirement in April, May, and June of 2020 to help business owners with cash flow during the COVID-19 pandemic.

• PASSHE is projected to lose up to $100 million this spring semester alone as a result of the COVID-19 crisis. Legislation is currently being developed to address the impact of the novel coronavirus on higher education institutions.

• Over the last two weeks the Chamber has hosted virtual gatherings with Councilmembers Jamie Gauthier (3rd District), Maria Quinones Sanchez (7th District), and Curtis Jones Jr. (4th District) to discuss City Council’s role in responding to COVID-19.
• The Chamber will host Councilmember Mark Squilla (1st District) on Friday, April 17 at 1:00 pm.
• The Philadelphia COVID-19 Small Business Relief Fund, administered by the City and PIDC received over 6,000 applications from small businesses and microenterprises for grants and zero interest loans since opening for applications on March 23.
• An additional $2.9 million has been secured for the fund through a mix of donations and repurposed City funds, bringing the total to more than $12.1 million to disburse to local businesses impacted by COVID-19. The second application period closed last night, April 15, at midnight.
• The Commerce Department is also working to promote the businesses that are still open and are driving more customers to safe shopping options, like curbside restaurant pickup/delivery and virtual fitness classes.

Congress Works to Replenish the Paycheck Protection Program

Earlier this week, the Small Business Administration announced that 1.1 million loan applications to the Paycheck Protection Program (PPP) have been approved, totaling more than $260 billion through 4,700 lending institutions.  The third phase of economic stimulus and financial assistance, called the CARES Act, created the popular $349 billion small business lending program that provides forgivable loans designed as a direct incentive for small businesses to keep their workers on the payroll.  Despite operational challenges to the rescue package that was hurried for launch on April 3, Congressional leaders are now warning that the program could become depleted by the end of this week.

In response, Congressional leaders have called for an additional $250 billion to replenish the program, however, Democrats are insisting that supplemental assistance to hospitals and state and local governments be included in the measure.  Republicans are instead calling for a clean bill to save PPP while highlighting a “Phase 4” economic stimulus measure or “CARES Act II” as the near-term legislative vehicle to address Democrats’ remaining concerns.

Republican and Democratic leadership have both attempted separate measures for passage in the Senate through “unanimous consent,” which streamlines the bill’s passage while Congress is recessed unless there is an objection.  However, both parties objected to the other’s proposals resulting in failed measures.

Currently, Treasury Secretary Steven Mnuchin and Senate Minority Leader Chuck Schumer are collaborating on a new measure and are expected to reach an agreement that will likely include money for the small business loans as well as money for hospitals and state and local governments, with a vote on the legislation in the Senate as soon as Thursday, if a deal is reached soon.

The House could vote on the legislation on Friday, depending on when a deal is reached. Even so, at least one House member is threatening to request a roll call vote, which will force a majority of House Members to return to Washington D.C. to ensure a quorum is met.

CARES Act II Legislation in Development

Through all of this, both sides agree that a broader and additional round of stimulus funding, Phase 4, should be considered. Congress is not expected to return from recess until May – originally, they were scheduled to return April 20. That means any effort to pass CARES Act II this month will likely require unanimous consent from both parties. CARES Act II is expected to provide more aid for small businesses, expand unemployment benefits, and make additional direct payments to individuals. The development of the legislation is said to be happening now.

As Congressional leaders consider extending the Paycheck Protection Program as part of CARES Act II, our Chamber together with more than 50 regional local Chambers urge expansion of eligibility under the program to include 501(c)6 organizations to benefit the work and staff of local chambers. We applaud members of our delegation for their calls for inclusion to House leadership, especially Congressman Chris Smith, Congressman Donald Norcross, and Congressman Brian Fitzpatrick for their leadership in galvanizing their peers to send separate joint congressional letters.

This represents a shift away from a focus on a possible infrastructure spending bill as a Phase 4 stimulus measure. However, there is still a possibility infrastructure investment could serve as a “Phase 5” economic stimulus bill depending on the timeline for economic reopening and recovery.

The Chamber has been in constant communication with our delegation. With both CARES II and a possible Infrastructure Stimulus Measure on the horizon, the Chamber issued a statement to our regional congressional delegation urging a balanced approach to bolster, extend, and expand the popular Paycheck Protection Program; supplement assistance to distressed sectors like hospitals and institutions of higher education; and invest in critical infrastructure areas that support our regional economy like transportation, talent, energy, water, and telecommunications.  Through all of this we’ve held a number of virtual meetings with a strong number of regional congressional members, including Senator Casey and Congresspeople Dwight Evans, Lloyd Sucker, Mary Gay Scanlon, and Chrissy Houlahan.

Question? Contact Anselm Sauter (asauter@chamberphl.com) for more information about federal legislative affairs.

General Assembly Approves Measure to Reopen Business

On Tuesday, the Pennsylvania House of Representatives voted to approve Senate Bill 613 to require the Wolf Administration to develop a plan to allow businesses to reopen if they follow federal safety guidelines as outlined by the Centers for Disease Control (CDC) and the Cybersecurity and Infrastructure Security Agency (CISA).

The bill, approved 107-95 mostly along party lines, loosens Governor Wolf’s March executive order that closed non-essential businesses due to the COVID-19 pandemic. Two Republicans from Montgomery County joined the Democrats in voting no – Rep. Todd Stephens and Rep. Tom Murt.

On Wednesday, the state Senate also voted to approve the measure. Governor Wolf has indicated he will veto the measure.

Governor Wolf also announced that he will work with a coalition of NE Governors to develop a plan about how to open up society and allow more businesses to operate. No timeline or details were provided.

In addition, the state House voted unanimously to concur with the state Senate on SB 841 regarding the crisis’ impact on local government. The measure allows for extensions in school property tax payments, allows local governments to conduct remote meetings, allows notaries to do business remotely through electronic communications, and extends deadlines for businesses to make payments under the state Educational Improvement Tax Credit program.

Pennsylvania to Receive Education Block Grant

The U.S. Education Secretary Betsy DeVos announced that Pennsylvania will receive $104,418,240 in emergency education block grants. The grants were awarded based on poverty and student aged population. Secretary DeVos said that “Governors may use the grant however they determine will best meet the current needs of students.”

PENNVEST Approves Emergency Loan to Hospitals

The Pennsylvania Infrastructure Investment Authority (PENNVEST) approved a $450 million emergency loan program to assist financially distressed hospitals as they work to address the COVID-19 outbreak.

Hospitals will be eligible to apply for low-interest loans of up to $10 million under the Hospital Emergency Loan Program (HELP). The loan is intended to provide short-term financial relief for hospitals until federal Coronavirus Aid Relief and Economic Security funding is available.

The HELP application period is expected to run from April 13-20 and hospitals should submit their requests through the Department of Community & Economic Development’s Electronic Single Application for Assistance. Applications will be evaluated based on specific criteria including size and location of the hospital, its financial need, and the impact of COVID-19 on its operations.

Waiver for Business Prepayments of Sales Tax

The Wolf Administration announced this week that businesses that collect Pennsylvania sales tax will not have to make Accelerated Sales Tax (AST) prepayments over the next three months. That means businesses that normally have a monthly prepayment requirement will not be charged penalties for missing the prepayment deadline during this three-month period. The Department of Revenue is waiving the prepayment requirement in April, May, and June of 2020 to help business owners with cash flow during the COVID-19 pandemic.

In addition to the waiver of Accelerated Sales Tax prepayments, the state Department of Revenue also has:

• Extended the deadline to file state personal income tax returns by 90 days. The new deadline of July 15, 2020 is the same as the new federal deadline.
• Extended the deadline to file informational returns related to PA S corporations, partnerships, and estates and trusts to July 15, 2020.
• Extended the due date for corporations with tax returns due in May to August 14, 2020.
  

PASSHE Projected to Lose Up to $100 Million

The Pennsylvania State System of Higher Education (PASSHE) is projected to lose up to $100 million this spring semester alone as a result of the COVID-19 crisis, according to its Chancellor Dan Greenstein.

Prior to the pandemic, the state’s public universities faced financial difficulties with declining enrollment of 20 percent in the last decade with the exception of West Chester University.

In light of the current crisis, the state is forecasting a budget shortfall of up to $4 billion, according to the Independent Fiscal Office. Governor Wolf’s budget proposal requested $250 million from a racehorse fund to create a scholarship program for low- and middle-income students in the state system. The Governor said on Tuesday that he is still pushing for the scholarship fund and his entire budget proposal despite the pandemic.

Sen. Tommy Tomlinson (R-Bucks) is currently considering legislation to address the impact of the novel coronavirus on these institutions.

Question? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

Virtual Gatherings with City Council Members

The Chamber is hosting members-only virtual gatherings with members of City Council to discuss Council’s role in responding to COVID-19, advocacy regarding relief for small businesses impacted by COVID-19, and how Council can be helpful during this unprecedented time.

Councilmember Jamie Gauthier (3rd District) discussed how she is disseminating information to constituents in her district and handling constituent calls and attendees heard an overview from the Apartment Association regarding their issues in surviving the COVID-19 emergency.

Councilmember Maria Quinones Sanchez (7th District) gave an overview of what Council’s priorities were as it relates to dealing with the COVID-19 crisis. She indicated that there is a focus on initiatives to uplift residents out of poverty but priorities have slightly shifted to address the following questions:

• What are we doing for health/safety?
• What can we do to protect workers and existing jobs?
• How do we balance budget?

Councilwoman Sanchez wants Council to use this experience to inform how we can strategically help people and tackle poverty and stated that the City must continue to seek funding from the Federal government and have a balanced approach in the process. Sanchez emphasized the government’s role is as the convener and that they should look to the private sector for support. She also emphasized Council must get creative and nimble with service delivery. Particularly as small businesses need help understanding what resources are available.

During this gathering Dan Fitzpatrick, President of Citizens Bank of  PA / NJ / DE; Head of National Mid-Corporate & Industry Verticals, briefly discussed the role the financial community is playing and how they are redeploying resources to small business clients.

Councilmember Curtis Jones Jr. (4th District) discussed City Council’s need to adjust City budget priorities and detailed how to assist businesses in local procurement around the COVID-19 needs. The group learned that the Councilmember will conduct a hearing around “lessons learned from the Coronavirus emergency”, and how the City can be more prepared going forward. Attendees of this discussion also heard an overview from Comcast’s Bret Perkins, VP External and Government Affairs, regarding the company’s efforts to assist individuals during the pandemic.

Chamber members are invited to join tomorrow’s gathering with Councilmember Mark Squilla (1st District), Friday, April 17, 1:00 p.m.

Second Round of City/PIDC Relief Funding is Closed

The Philadelphia COVID-19 Small Business Relief Fund, which launched on March 23 with approximately $9.25 million as a partnership between the City and PIDC, has received over 6,000 applications from small businesses and microenterprises for grants and zero interest loans.

Round one saw 4,221 applications with requests totaling $61 million. An additional $2.9 million has been secured for the fund through a mix of donations and repurposed City funds, bringing the total to more than $12.1 million to disburse to local businesses impacted by COVID-19.

Applications for small business grants and loans closed on March 30 and round two applications were only accepted and reviewed from businesses applying for Microenterprise Grants of $5,000. The second application period closed last night, April 15, at midnight.

Awards are not being made first come, first served, the scoring is designed to take into account and prioritize businesses located in low-income areas and providing employment to low-income individuals. 

The Commerce Department is also working to promote the businesses that are still open and driving more customers to safe shopping options, like curbside restaurant pickup/delivery and virtual fitness classes.

Question? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs. 

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: 

• Anselm Sauter, Federal Affairs – asauter@chamberphl.com 
• Liz Ferry, State Affairs – lferry@chamberphl.com 
• William Carter, Local Affairs – wcarter@chamberphl.com 

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

We also have a COVID-19 Information Hub with up-to-date resources to support your business.