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 30, 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.

Visit the COVID-19 Information Hub

KEY TAKEAWAYS FOR YOUR BUSINESS

Federal

  • The House will not reconvene on May 4, citing significant risk while the Senate has not revised its plan to return from recess next week.
  • The Phase 4 or CARES Act 2 relief package may include financial aid for state and local governments, liability protections for businesses and health care workers, hazard pay for front line workers, expanded unemployment benefits, tax relief, and additional direct payments.
  • A $484 billion emergency relief package that supplements the depleted small business lending programs and provides additional assistance to hospitals and for testing was signed by the President last week.
  • The SBA reopened loan applications this week. Prior to reopening, the SBA reported that PPP has supported more than 1.66 million small businesses and protected over 30 million jobs.
  • The SBA will increase scrutiny of any loans distributed above $2 million under the PPP following reports of larger companies receiving funding under the program.

State

  • Tomorrow, May 1, Governor Wolf will announce which counties or regions will start a phased reopening on May 8.
  • The Administration is working with Carnegie Mellon University to develop a modeling dashboard that will act as a decision support tool during the phased reopening process.
  • A target of 50 or less new COVID-19 cases per 100,000 residents per day for 14 days has been set for counties to reopen, along with adequate testing, contact tracing infrastructure, and identification of an area’s high-risk settings.
  • The Pennsylvania General Assembly is considering legislation to allow all real estate related activities to occur as long as they adhere to the COVID-19 social distancing practices.
  • Lawmakers are moving legislation to mandate a debt cost reduction review as well as the inclusion of “critical risk factors” as part of the annual assessment of Pennsylvania’s fiscal condition and five-year projection.
  • State Republican leaders are likely to subpoena the Wolf administration requesting information about the non-essential business waiver program.
  • DCED Secretary Dennis Davin announced a second round of state funding for Pennsylvania businesses under the Working Capital Access Program (CWCA).
  • The Wolf Administration announced that elective surgeries may begin again and certain outdoor recreational activities can open statewide on May 1.

Local

  • Mayor Kenney will present a revised FY21 Budget on Friday, May 1 at 11:00 a.m. Cuts upwards of 15-20% are expected.
  • Confirmed COVID-19 cases in Philadelphia exceed 13,000 with over 500 deaths.
  • Construction projects, with some limited exceptions, will be allowed to resume in Philadelphia this Friday, May 1. This announcement aligns with the Wolf Administration’s statewide reopening date for this sector.
  • Philadelphia Water Department and the Water Revenue Bureau have postponed all water shutoffs for residential and commercial customers who are unable to pay their bills through June 1.
  • The City has extended filing and payment dates for  real estate and some business taxes.
  • Legislation will be introduced by Councilmembers Gauthier, Gym, and Brooks during the May 1 session to expand paid sick leave and provide relief for renters.
  • The Chamber will host a discussion for Chamber members with board members of the Pennsylvania Intergovernmental Cooperation Authority (PICA) after the Mayor’s budget address on May 1.
  • The Chamber will host Councilmember Helen Gym for a virtual gathering with members on May 5.

DETAILED LEGISLATIVE UPDATE

Federal: Updates from Washington D.C.

Next Phase of Relief Legislation

After announcing plans to reconvene on Capitol Hill on May 4, House leadership canceled those plans citing significant risk of returning to Washington, D.C. after consulting with the Attending Physician of Congress. Discussions to change the House rules to allow Members to work remotely continue as leadership will consider proxy voting rules that would allow Members to conduct legislative business without needing to return to Capitol Hill. 

The Senate meanwhile has not moved from its plan to return from recess next week.  After comments last week suggesting that states and local governments should apply for bankruptcy, Senate Majority Leader Mitch McConnell walked back his comments by saying it was highly likely the next phase of relief legislation will include financial aid to state and local governments. The National Governors Association is asking Congress to appropriate $500 billion of financial relief to state governments in the next round of relief to fund efforts to combat the outbreak and offset lost revenue.

Leader McConnell indicated that federal aid to states may be in exchange for liability protections for businesses and health care workers.  For those essential businesses that have maintained operations and those that will begin to reopen when state restrictions are lifted, there are significant concerns that businesses will be susceptible to litigation if a customer or employee contracts COVID-19. Congressional leaders are also calling for hazard pay for front line workers, expanded unemployment benefits, tax relief, and another round of direct payments to individuals in the next relief package, described as Phase 4 or CARES Act 2. The Chamber continues to advocate for the priorities identified in its statement to our regional congressional delegation.  

The same relief bill will not include infrastructure investments according to Leader McConnell despite President Trump’s call for a $2 trillion investment. Leader McConnell claimed this week that infrastructure spending is unrelated to the ongoing coronavirus pandemic. Instead, McConnell signaled a “more modest” infrastructure bill, building on the highway bill that passed the Senate Environment and Public Works Committee last year.

Supplemental Emergency Relief Package

Last week, the President signed a $484 billion emergency relief package that supplements the depleted small business lending programs and provides additional assistance to hospitals and for testing.  The relief measure includes:

  • $310 billion in additional funding to replenish the depleted Paycheck Protection Program (PPP)
    • $60 billion of the total funding is provided specifically through small lenders like community financial institutions and credit unions
  • $60 billion for Economic Injury Disaster Loans
  • $75 billion in additional payments to hospitals for lost revenue related to the pandemic
  • $25 billion to expand capacity for testing

The relief package does not expand borrowing eligibility so that all nonprofits, including business associations, can access the PPP.  This week, 18 Senators signed a bipartisan joint letter to Senate leadership and the Chair and Ranking Member of the Small Business Committee expressing their support for allowing 501(c)(6) nonprofits to apply for small business loans under the PPP. House Speaker Nancy Pelosi also signaled her support for 501(c)(6) nonprofits this week. These developments follow efforts led by Congressman Chris Smith, Congressman Donald Norcross, and Congressman Brian Fitzpatrick to press House leadership to expand PPP borrowing eligibility through separate joint congressional letters.  The Chamber will continue to advocate for eligibility for all nonprofits under the Paycheck Protection Program in the next phase of economic stimulus.

Paycheck Protection Program

The Small Business Administration (SBA) began accepting loan applications again at the beginning of this week. Up until that time, the SBA reported that PPP has supported more than 1.66 million small businesses and protected over 30 million jobs. The Treasury Department has warned interested borrowers that the SBA will increase scrutiny of any loans distributed above $2 million under the PPP and suggested there will be repercussions to false claims that a PPP loan was critical to maintain operations during the pandemic. This follows reports that Los Angeles Lakers, Shake Shack, and Potbelly were able to obtain loans under the PPP. Larger companies have until May 7 to return the funding to avoid any potential for investigation. The SBA plans to audit companies to determine whether the business needed the loan to sustain operations, whether the business qualifies as a small business, whether the size of the loan was appropriate, and how the proceeds of the loan were used.

State: Updates from Harrisburg

Gov. Wolf to Announce Tomorrow Which Counties Can Reopen May 8

On Friday, May 1, Governor Wolf will announce which counties or regions will start a phased reopening on May 8th. To date, the Administration has been vague about how regions or counties would be selected.

The Governor’s Plan for PA outlined standards for reopening which included a color-coded chart which showed red, yellow, and green categories for reopening.

Governor Wolf said they will employ a modeling dashboard under development by Carnegie Mellon University “to take a regional and sector-based approach to reopenings and the easing of restrictions”.

The dashboard – which is expected to incorporate “data that considers worker exposure and spread risks, health care capacity, economic impact, and supply chain impact” – will act as a decision support tool, according to the Administration.

Under the Red Phase, which currently applies to the whole state, non-life sustaining businesses and schools are closed, and stay at home orders are in place.

Under the Yellow Phase, some restrictions on work and social interaction will ease while others, such as closures of schools, gyms, and other indoor recreation centers, as well as limitations around large gatherings, remain in place. Businesses will be able to reopen, though those with in-person operations will be required to follow business and building safety orders that have yet to be determined, and telework will still be required where feasible. The Yellow Phase does allow for in-person retail sales, though state officials indicated curbside and delivery sales are preferable. The phase also allows for the reopening of child care facilities. Gatherings of people will be limited to no more than 25 and much of the current social distancing policies will remain in place.

The Governor said, “to determine when a region is ready to reopen and return to work, they will evaluate the incidence rate of COVID-19 cases per capita. A county can make the list for consideration to open if they, on average for the past 14 days, had 50 or less new cases per 100,000 residents per day. For example, an area with a population of 800,000 people would need to have fewer than 400 new confirmed cases reported in the past 14 days to meet the target.

The target data goal is not the only metric to be met before reopening a region. The state is also looking at:

  • Enough testing available for individuals with symptoms and target populations such as health care personnel and first responders.
  • Contact tracing infrastructure in place to facilitate early identification of cluster outbreaks and to issue proper isolation and quarantine orders.
  • Identification of an area’s high-risk settings including correctional institutions and personal care homes.

Chamber Issues Survey to Membership

In light of the Wolf Administration’s Plan for reopening PA, the Chamber asked members to share their most pressing questions about reopening their businesses or returning to the office. The information will help shape our ability to advocate and communicate to the Commonwealth of Pennsylvania. To participate in the survey, visit surveymonkey.com/r/ReopeningPHL.

PA General Assembly Continues Working on COVID-19-related Measures

This week, the Pennsylvania General Assembly is considering legislation to allow all real estate related activities to occur as long as they adhere to the COVID-19 social distancing practices and other guidelines as required by the Centers for Disease Control. In addition, lawmakers are moving legislation to mandate a debt cost reduction review be conducted by the Treasury Department and the state Budget Secretary among others authorized to issue debt. The Independent Fiscal Office (IFO) would also be required to include “critical risk factors” as part of both its annual assessment of Pennsylvania’s fiscal condition and its projection of the fiscal condition for the succeeding five years. Recently the IFO said Pennsylvania could face a $4.7 billion shortfall as a result of the pandemic.

On April 24, Sens. Mike Regan (R-York) and Tom Killion (R-Delaware) sent letters to Governor Wolf and Department of Community and Economic Development (DCED) Secretary Dennis Davin requesting information about the Wolf Administration’s “non-essential” business order and waiver program, giving the Administration a deadline of April 29 to respond. Subpoenas may be issued if the Administration does not respond.

Legislation (HB 2369) introduced by Reps. Jared Solomon (D-Philadelphia) and Valarie Gaydos (R-Allegheny) is being considered to create grant and loan programs to support businesses financially impacted by the pandemic. Grants are required to be used to provide technical assistance, training, or other support.

Legislation (HB 2386) introduced by Rep. Mehaffie (R-Dauphin) to create a Disaster Emergency Business Interruption Grant program – to provide grants to businesses that are denied business interruption insurance claims during the COVID-19 disaster emergency – ran into trouble this week as members expressed concern about the cost of the measure. Lawmakers urged that the bill be put on hold until it can be determined if the federal government will pay for the claims.

Yesterday, Gov. Wolf vetoed a telemedicine bill arguing it contained a provision he sees as limiting access to abortion.

Wolf Administration Says Elective Surgeries May Begin Again

On Monday, State Secretary of Health Rachel Levine said hospitals and surgical centers in Pennsylvania can resume elective procedures that have been halted for weeks by the coronavirus pandemic. According to Secretary Levine, facilities must be sure they have enough personal protective equipment to deal not only with the elective procedures but also any possible increase in COVID-19 cases. In addition, they cannot take on so many surgeries that, if a surge happens, the facility would be forced to prioritize some care over others.

Wolf Administration Announces Second Round of State Funding for Pennsylvania Businesses

The state Department of Community and Economic Development (DCED) Secretary Dennis Davin announced that 160 companies in 43 counties have received $13.5 million in funding during the second round of the COVID-19 Working Capital Access Program (CWCA). Funds awarded under the program to date total more than $23 million and have been awarded to a number of diverse businesses.

A list of approved projects has been released with new disbursements highlighted in yellow.

Governor Announces May 1 Statewide Reopening of Outdoor Recreational Activities

Starting Friday, May 1, golf courses, marinas, guided fishing trips, and privately owned campgrounds may reopen statewide but are required to follow updated life-sustaining business guidance. Campgrounds in state parks will remain closed through Thursday, May 14.

Local: Updates from Philadelphia’s City Hall

Revised Budget Address

Mayor Kenney will present a revised FY ’21 Budget Friday, May 1 at 11:00 a.m. Cuts upwards of 15-20% are expected. Mayor Kenney has previously voiced concern about the fate of emergency federal aid for cities, counties, and states without federal aid. He indicated that without such aid Philadelphia will be forced to take drastic steps to balance their budgets, including massive layoffs and drastic cuts to vital services, which will deprive residents of the services they need and lessen the possibility of a speedy economic recovery.

COVID-19 Case Data

The Philadelphia Department of Public Health today announced 577 additional confirmed cases of COVID-19 novel coronavirus in Philadelphia. That brings the number of confirmed cases to 13,445. The Department of Public Health again noted clusters of positive cases in congregate settings, including nursing homes, behavioral health facilities, and the Department of Prisons. Eight additional inmates have tested positive. The current total of positive cases at correctional facilities is 71. The Department of Public Health confirmed 32 additional fatalities in Philadelphia. This brings the number of residents who have succumbed to the virus in Philadelphia to 516. Of the 516 total deaths, 288 (56%) were long-term care facility residents. The Department of Public Health reports 1,001 patients with COVID-19 are currently being treated in Philadelphia hospitals, with a total of 1,856 people hospitalized in the region (including Philadelphia).

Construction Activity

Mayor Jim Kenney today said that with some limited exceptions, construction projects that were subject to the state shutdown order on March 20 will be allowed to resume in Philadelphia this Friday, May 1. This decision comes in light of the earlier announcement by Governor Wolf that construction business in Pennsylvania can resume on Friday.

Water Shutoff Extension

In line with other regional utilities, the Philadelphia Water Department and the Water Revenue Bureau have postponed all water shutoffs for residential and commercial customers who are unable to pay their bills through June 1, 2020. This is a 16-day extension of the original postponement period, which prevented delinquent accounts from being shut off through May 15. Customers who cannot pay their bill should apply for help using the application at phila.gov/waterbillhelp.

Testing Sites

A list of available testing sites is provided on the City’s website. Click on “Where Can Someone Get Tested?” The list includes private testing sites being run by hospital systems and other organizations across the city, as well as public testing sites. If individuals are not able to get tested through their medical provider or do not have a medical provider, they can be tested at a public testing site.

COVID-19 Resources for Businesses

Updates from City Council

City Council will return this Friday, May 1 at 11:00 a.m. to receive the Mayor’s revised budget address.

The Chamber has learned that legislation will be introduced by Councilmembers Gauthier, Gym, and Brooks during the May 1 session regarding expanding paid sick leave legislation to 14 days for emergency declarations, including a proposal to back date payments to the beginning of March and relief for renters as outlined in last week’s legislative update.

Council Connector Virtual Gatherings

The Chamber will be hosting the following virtual gatherings:

  • Friday, May 1 at 3:00 p.m. – Pennsylvania Intergovernmental Cooperation Authority (PICA) – Register online »
  • Tuesday, May 5 at 2:00 p.m. – Councilmember At-Large, Helen Gym – Register Online »

WE’RE HERE FOR YOU, YOUR TEAM, AND YOUR BUSINESS

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: 

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.

Visit the COVID-19 Information Hub