COVID-19 Federal Response Update From Congressman Andy Barr

COVID-19 Federal Response Update From

Congressman Andy Barr

Since my last update, the U.S. Small Business Administration (SBA) rolled out the Paycheck Protection Program (PPP) to provide cash flow through low-cost or forgivable loans to Kentucky small businesses suffering in the wake of the Coronavirus outbreak. Established by the Coronavirus Aid, Relief and Economic Security (CARES) Act, which recently passed Congress with my support, the PPP has generated over 400,000 small business loans valued at over $110 billion in just the first four days of the program. To put that accomplishment in perspective, in all of 2019, the SBA approved approximately 52,000 loans totaling $23 billion in loans. That is why this week I announced my support for the additional $251 billion requested for the program by the Administration. If you find this update to be helpful, and you would like to receive my regular e-newsletter, please sign up by visiting https://barr.house.gov/newsletter-subscription.

Protecting Paychecks

This herculean effort to get the PPP up and running in such a short timeframe is a real credit to the private sector community banks, credit unions and other lenders who have been delegated the responsibility to implement this program. Congress recognized the federal government is not nimble enough to originate and process this high volume of loans without private sector help.

Any business with 500 or fewer employees—including 501(c)3 nonprofits, 501(c)19 veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. The CARES Act also provides eligibility to businesses with more than 500 employees in certain industries, including hotels, food service and some franchise businesses. Maximum loan amounts are the lesser of $10 million or 2.5 percent of payroll and can be used for payroll costs, rent, utilities and mortgage interest. Loans used to cover eight weeks of payroll and other qualified expenses may be forgiven, with no less than 75% of the forgivable loan amount used for payroll costs. Any unforgiven portion of a loan will have a maturity of two years, with six months deferment of payments, at a one percent interest rate.

Much of my time this week has been spent working with Kentucky lenders, helping them with the on-boarding process and assisting them obtain credentials from the SBA to begin processing loan applications. I also have been working with the Treasury Department to streamline program guidelines so that lenders may use either their own promissory note and closing documents or SBA forms. The Treasury Department also clarified additional details of the program, announcing that the eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower and that the lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval. I am happy to report that many Kentucky small businesses are already seeing disbursements of their loans.

Prior to the launch of the PPP, I led a letter to Treasury Secretary Mnuchin and SBA Administrator Carranza to encourage lender participation, and maximize business eligibility. I sent a separate letter to Treasury Secretary Mnuchin requesting guidance that businesses such as Keeneland and The Red Mile be eligible for the PPP. And I personally worked to include provisions in the CARES Act to give financial institutions regulatory flexibility to modify the terms of existing loans for homeowners, businesses and other borrowers needing forbearance or deferment of payments. Our goal is to “flatten the curve” without flattening families or small businesses and keep workers attached to their jobs so that when it’s safe to re-open the economy, we can do so quickly.

On Tuesday, I called for an expansion and enhancement of the PPP to ensure that no small business is left behind simply because of a shortage of appropriations. I also asked Secretary Mnuchin to establish a liquidity facility to provide immediate funding to participating lenders so they can continue to originate PPP loans without negatively impacting their leverage ratios and before the SBA begins to purchase these loans from lenders seven weeks from now. On Thursday, the Treasury Department and the Federal Reserve announced details of a liquidity facility, which will greatly strengthen the PPP.

Finally, I created a small business response team in my Lexington office that is available to business owners, self-employed workers, independent contractors and lenders in the Sixth District who have questions about the PPP. Let us know how we can help you and your business, as we work with Treasury and the SBA on outstanding implementation issues. You may contact my Lexington office at (859) 219–1366 with any questions or concerns.

County Clerks

The Paycheck Protection Program could not be implemented in the timely manner intended by Congress without County Clerks remaining open and operating. This week, I expressed my gratitude for Kentucky County Clerks who are continuing to provide their essential services in support of emergency lending to Kentuckians while adhering to social distancing guidelines during the COVID-19 pandemic. The hardworking public servants in Kentucky’s County Clerks’ offices provide critical services, including title search, notary, and lien recording activities in support of mortgage, real estate and business services and transactions.

Kentucky Receives Abbott Tests

Kentucky has received 15 Abbott ID NOW platforms and 120 test kits, procured by the federal government. Throughout this pandemic, I have worked diligently to expand our health care professionals’ access to diagnostic testing and personal protective equipment (PPE) needed to combat this disease, and I appreciate the U.S. Department of Health and Human Services (HHS) working with my office on these issues. These rapid, high through-put tests are essential to preserving PPE and protecting our frontline healthcare workers. Upon receipt of this great news, my office notified the Governor’s office, our hospitals and Abbott Laboratories to help facilitate acquiring more test kits. Abbott is currently manufacturing about 50,000 tests per day.

Recovery Rebate Checks

The distribution of rebate checks included in the CARES Act will begin in late April according to the Internal Revenue Service. Eligible taxpayers with bank account information already on file with the IRS will receive a direct deposit in their account within approximately two weeks. Social Security recipients will automatically receive these payments, consistent with their current method of payment, as the U.S. Department of the Treasury recently announced. Other individuals can obtain their rebate by applying online or through paperwork with the IRS. Please call my office at (859) 219-1366 should you need assistance obtaining your recovery rebate.

The full rebate amount is $1,200 for individuals with adjusted gross income at or below $75,000 and $2,400 for couples with adjusted gross income at or below $150,000. Families with children will receive an additional $500 per child. Rebates will be gradually reduced for individuals and couples above those income thresholds and ultimately phased out at $99,000 for individuals and $198,000 for couples. In order to be eligible, a person must have a valid Social Security Number.

Personal Protective Equipment

Throughout out this pandemic, I have been working to ensure our frontline medical professionals have the personal protective equipment (PPE) they need. These efforts include coordinating and advocating with FEMA, HHS and the White House Coronavirus Task Force to get desperately need supplies from the Strategic National Stockpile (SNS), the nation’s largest supply of potentially life-saving pharmaceuticals and medical supplies. To date, Kentucky has received three shipments from the SNS including:

On March 21, Kentucky received a shipment of 41,744 N95 Masks, 99,443 Surgical Masks, 18,936 Face Shields, 15,439 Surgical Gowns, 79 Coveralls and 54,972 Gloves.
On March 24, Kentucky received 41,744 N95 Masks, 99,443 Surgical Masks, 18,936 Face Shields, 15,439 Surgical Gowns, 79 Coveralls and 54,972 Gloves.
On March 30, Kentucky received 60,450 N95 Masks, 143,511 Surgical Masks, 31,207 Face Shields, 25,688 Surgical Gowns, 1,765 Coveralls and 184,258 Gloves.

Furthermore, 11.7 million N95 respirators, 26.5 million surgical masks, 5.3 million face shields, 4.4 million surgical gowns, and 22.6 million gloves have been distributed nationwide. The President also announced that because of his invocation of the Defense Production Act, 3M will deliver an additional 55.5 million face masks each month.

In the last 7 days alone, FEMA has airlifted crucial supplies and protective equipment from foreign sources to supplement the surge in domestic production. Since March 29th, U.S. government cargo planes have delivered nearly 300 million gloves, almost 8 million masks, and 3 million gowns. I will continue to advocate for PPE for all Kentucky frontline healthcare workers, medical providers and first responders throughout the duration of this public health emergency.

Appreciation

I want to take the opportunity to acknowledge the courage of millions of Americans who are unsung heroes, going to work every day as police officers, fire fighters, paramedics, grocery store employees, truck drivers, postal workers, bank tellers, sanitation and cleaning professionals as well as all the other Americans still working despite the danger this virus poses to them. Their sacrifice helps our communities maintain some normalcy as so many temporary changes are occurring.

I continue to seek your feedback and ideas as Congress works on a bold agenda to guide America through the COVID-19 pandemic and engineer the great American comeback that is forthcoming. You can always reach out to my Lexington office (859) 219-1366 or my Washington office (202) 225-4706 with your input. Lastly, if you would like to stay informed on what is happening in Washington, D.C. and around the Sixth Congressional District, again, I encourage you to sign up to receive my e-newsletter by visiting https://barr.house.gov/newsletter-subscription. If you want to unsubscribe to my e-newsletter, you can do so by clicking here.