The following is an update from AWFS’ legislative advocacy partner LobbyIt
(as of 04.13.20)
The IRS faces a major test of its resources this month, with the agency expected to start distributing stimulus payments to individuals and families under the third coronavirus-response package. IRS and Treasury Department officials have told lawmakers that they expect to send the first payments via direct deposit in mid-April. Paper checks would start flowing in May – and it could take up to five months to get them all out.
The agency will also implement other tax elements of the rescue packages, including tax credits to keep workers on the payroll at struggling businesses and to help employers pay for sick and family leave. Industries affected by those provisions and others will work on shaping the rules and regulations to their liking.
Banks are beginning to offer $350 billion in small-business loans this month as part of the $2 trillion economic rescue package. But the Paycheck Protection Program, which forgives the loans if a business maintains its payroll, got off to a rocky start Friday as banks scrambled to process applications based on guidelines the Trump administration published just hours earlier. However, the demand for these funds is so high that the Administration has already sent a request to Congress asking for an additional $251 billion to guarantee that every business asking for funds will be able to get them. There are two competing proposals on the Hill: Republicans want to pass a bill that only addresses this funding request. Democrats want to add additional funding for hospitals, community health centers, and state and local governments. After a failed vote on both proposals on Thursday, the Administration and Republicans have stated that they are willing to negotiate a compromise with the Democrats.
The Financial Stability Oversight Council – an interagency body consisting of all the top regulators – is rolling out a plan to prevent mortgage servicers from going under amid the widespread suspension of payments by homeowners, with 2 million homeowners expected to be allowed to suspend mortgage payments by the beginning of May.
Colleges and universities are also anxious for their slice of more than $14 billion in direct aid from the coronavirus stimulus package as revenues decline, but they are still waiting to hear from the Education Department on how and when it plans to distribute the funding. The department said Saturday it would provide guidance “in the near future.”
Agencies have released the following resources on key provisions of the CARES Act: –
IRS: Qualified Family Leave
IRS: Employee Retention Credit
SBA: Available Coronavirus Relief Options
DOL: Employer Paid Leave Requirements
Currently, what Congress will do next is up in the air. Our expectation is that there will be 2-3 additional rounds of funding. One in the next week or so to supplement the Paycheck Protection Program. A second to address broader needs that both Democrats and Republicans acknowledge and potentially a third round later this year as the economic impact of the virus becomes more apparent.