NASBP Focal Point - May 29, 2020

Nine state legislatures are currently in session: California, Colorado, Delaware, Federal, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, and Pennsylvania.

Territories: Guam and Puerto Rico.

*Click here for a complete 2020 calendar of the state’s original legislative session dates.

In This Issue

Federal Report
CARES Act Paycheck Protection Program (PPP)
State Summary

Federal Report:

CARES Act Paycheck Protection Program (PPP)

Since the enactment of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a great deal of attention has been placed on the potential risks borrowers face when accepting loans through the CARES Act Paycheck Protection Program (PPP). NASBP has signed on to several congressional letters requesting that Congress consider legislation to make revisions to the PPP.

Last week, NASBP signed on to the U.S. Chamber of Commerce’s letter that was sent to the Trump Administration and Congress. The letter did not, however, address an important issue confronting 501(c)(6) organizations who were prohibited from participating in the PPP. The American Society of Association Executives
(ASAE ) have requested the Senate to consider the House-passed HEROES Act, to allow 501(c) entities to apply for PPP funds. The HEROES Act carved out 25 percent of PPP funds solely for the use of all nonprofits, no matter their size or type, and dedicates half to smaller nonprofit organizations with fewer than 500 employees. Finally, the Construction Industry Procurement Coalition (CIPC), which includes 14 construction-related organizations including NASBP, delivered a letter seeking guidance and clarification for the treatment of PPP loan forgiveness for small business government contractors.

Recognizing the need to provide financial security to small businesses who are financially troubled by the COVID-19 crisis, yesterday the House passed H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, which offers businesses greater flexibility to make qualifying expenditures for loan forgiveness and allows for businesses with forgiven loans to defer payroll taxes. Additional specifics include extending the current eight-week period during which businesses must use funds to have loans forgiven to 24 weeks or Dec. 31, whichever comes sooner. The bill also allows businesses to repay loans over five years instead of two and removes the current rule that no more than 25% of proceeds can be used towards expenses. A similar measure with bipartisan support is in the Senate, which would extend the deadline to apply for a loan from June 30 to the end of the year and doubles the current eight-week period during which businesses must use funds to have loans forgiven. The Senate is expected to take action on this matter next week.

Additionally, next Wednesday, the Senate Commerce, Science, and Transportation Committee will convene a hearing titled, “The State of Transportation and Critical Infrastructure: Examining the Impact of the COVID-19 Pandemic.” The hearing will examine the impact of COVID-19 on surface transportation and the supply chain. Witnesses will discuss how the surface transportation stakeholders have responded to the pandemic and how they have continued to provide critical services during the COVID-19 outbreak.

On a separate note, the Small Business Administration’s Office of Surety Guarantees now accepts electronic signatures from participating sureties and small businesses. To read the Procedural Notice announcing this change, click here.

To stay up to date on NASBP’s efforts through the COVID-19 pandemic, please follow along here.

State Summary

Here are a few points of note since the global outbreak of coronavirus:

Over 170 bills have been introduced in 42 state legislatures, Puerto Rico, and the District of Columbia on paid sick leave and worker protections as well as appropriations requests.
Over 300 executive actions have been issued in 50 states, Puerto Rico, the District of Columbia, Guam, and the Virgin Islands related to declarations of states of emergency, school closures, prohibition of mass gatherings, retail and business closures and restrictions, and stay at home orders.
Over 1,170 executive actions have been issued in total.
Over 20 state task forces have been established by 12 governors.
Over 30 states and the District of Columbia have issued emergency COVID-19 regulations on a number of issues, including (but not limited to) health insurance carriers, labor and wage, and medical licensure.
Sixty-nine legislative chambers have either temporarily adjourned, moved to virtual meetings, or announced an early recess or sine die.

NASBP will continue to furnish updated information as it becomes available.

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Focal Point is an e-bulletin sent to members and friends of the
National Association of Surety Bond Producers
when most state legislatures are in session and as needed thereafter. To obtain copies of Bills or other materials discussed above, contact
advocacy@nasbp.org
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