Vermont Chamber Leading Businesses From Relief to Recovery

Work in Vermont is steadily underway as business community leaders begin planning for economic recovery. This week, Vermont Chamber Vice President of Business Development Chris Carrigan joined a sub-taskforce for Vermont’s manufacturing sector, supporting Governor Phil Scott’s Restart Vermont Guidance Advisory Council. Vermont Chamber Vice President of Tourism Amy Spear is also supporting the restaurant and lodging leaders planning economic recovery in the state. On Wednesday, Vermont Chamber President Betsy Bishop published an op-ed detailing the path forward for Vermont businesses, from relief to recovery, including initial policy recommendations. Several Vermont Chamber members are also directing recovery efforts as part of Gov. Scott’s Economic Mitigation and Recovery Task Force action teams. Additionally, this week the Vermont Chamber launched the Solutions Hub to collect policy suggestions and ideas to help businesses through the COVID-19 pandemic and afterward. These ideas will be compiled and shared with the Economic Mitigation and Recovery Task Force and other state leaders.

Vermont Businesses Receive $1 Billion From Paycheck Protection Program

The Small Business Association issued a state-by-state summary on the Paycheck Protection Program (PPP) with this first round, logging 1.7 million loans totaling $342 billion, with an average loan of $206,000. Vermont lenders wrote nearly 7,000 loans totaling just over $1 billion, and while that is a large number, the Vermont Chamber continues to advocate for more money at the federal level and looser restrictions to allow more of these loans to be converted to grants to help businesses. On Thursday, Congress added another $321 billion to the program with passage of the latest economic relief package.

Senate Advances Temporary Changes to Workers’ Compensation

The Senate Committee on Economic Development, Housing and General Affairs voted 5-0-0 to advance changes to workers’ compensation coverage that would remain in effect during the State of Emergency and for up to 45 days after. If enacted, the changes would provide a presumption that certain workers who are diagnosed with COVID-19 are entitled to workers’ compensation for the disease. The legislation advanced despite little being known about the impact these changes could have on employers’ workers’ compensation insurance rates. The bill is expected to receive additional changes when it is considered in the House.

ACCD Briefs Senate on Economic Impact of COVID-19

The Agency of Commerce and Community Development (ACCD) testified in the Senate Committee on Economic Development, Housing and General Affairs, providing legislators with preliminary numbers on the economic damage caused by the COVID-19 crisis. ACCD reported an initial estimate of $1 billion in total impact. The testimony also highlighted the role the recently established RestartVT team will play in helping to develop reopening plans for various sectors as recovery continues.

The Vermont Chamber is communicating daily with the Administration to assist in developing economic restart and recovery plans that appropriately meet the business community’s needs.

Vermont Chamber Highlights Liability Concerns in Task Force Letter

The Vermont Chamber sent a letter this week to Governor Scott and the recently created Economic Mitigation and Recovery Task Force highlighting certain employer liability concerns related to restarting businesses. While not yet a widespread issue in Vermont, employers in many states are facing litigation as a result of the implementation of mandatory workplace safety practices that can, in certain instances, conflict with existing privacy and employee rights laws. The Vermont Chamber will continue to advocate for policies that appropriately account for the impact of new workplace safety requirements on employee rights and employer liability.

COVID-19 Employer Responsibilities: Questions and Answers

With guidance provided by Vermont Chamber of Commerce member Paul Frank and Collins, the Vermont Chamber published a questions and answers sheet highlighting newly permitted or mandated employer practices related to COVID-19. The document summarizes health and safety procedures employers may implement at workplaces in response to the pandemic. It also provides guidance on temporary changes to laws impacting employee health privacy.

Blueprint for Restaurant Recovery

The National Restaurant Association has released a blueprint for restaurant recovery at the national level. The document outlines targeted federal government requests to advance recovery. The Vermont Chamber is supportive of these proposals and is working to advance a similar plan at the state level.

Meals and Rooms Tax Deadline Relief

The Department of Taxes is providing temporary relief to Vermont businesses that owe Meals and Rooms Tax or Sales and Use Tax. Businesses that are unable to meet the April 25th filing deadline will not be charged any penalty or interest for late payment. This is not an abatement of the tax, but instead a waiving of any interest or penalty for late payments. The Vermont Chamber is continuing to lobby the Legislature for full abatement of the February and March Meals and Rooms Tax.

Vermont-Specific Data for COVID-19

The State of Vermont is working with several infectious disease experts to forecast the impact of COVID-19 in our state as accurately as possible. Vermont-specific modeling is being used to help prepare the State's response to COVID-19 and guide policy decisions. The Department of Financial Regulation has published this data that demonstrates the trajectory of the COVID-19 virus in Vermont and our health care system’s capacity to respond. The slide deck provided shows the progress Vermont is making, and many of the charts show that the state is effectively flattening the curve.

Resource Roundup

The Vermont Chamber staff has spent hundreds of hours on COVID-19 Zoom calls, conference calls, and webinars learning so that we can answer your questions in this ever-changing time. Collectively, we have had thousands of individual communications with members and non-members during the crisis. It is likely we can help you, too.

Want to understand the new UI rules? Tax deadlines? Online reservation guidance? PPP eligibility? Contact us for information and we will get the answer for you. Since we are working from home, email works best.

We have also seen excellent content from our members, which will be compiled weekly in our Resource Roundup. If you have content including free webinars, informational articles, blog posts, or YouTube videos, send your links to news@vtchamber.com and we will distribute them to our statewide list each Friday. Thank you for your continued support. Remember, we are in this together.

Coping Through COVID-19: Dartmouth-Hitchcock Health Launches Webinar Series

Dartmouth-Hitchcock Health has launched a mental health webinar series in response to the COVID-19 global pandemic. The series discusses the challenges for parents, students, health care workers, and seniors. This webinar is a six-part series streaming live each Wednesday.

Business Income Insurance Q&A

The Department of Financial Regulation has developed a guidance overview of whether business insurance will cover loss of income and other issues caused by COVID-19. They also have suggested reviewing a COVID-19 and Insurance brief that provides an overview of how different types of policies respond to losses related to COVID-19, including Travel, Health, Life, Annuities, Business Interruption, Workers' Compensation, and other insurance.

View Labor Department Town Hall Series on YouTube

The Vermont Department of Labor continued its informational series on unemployment insurance claims process for regular employees and a new program for the self-employed. Previously recorded events can be viewed on the Department’s YouTube channel.

SBA PPP Compliance Requirements

The Small Business Administration issued guidance on compliance requirements necessary for Paycheck Protection Program (PPP) loan forgiveness. Complying with the requirements early will help guarantee greater portions of PPP loans are forgiven.

EEOC Guidance on Employee Health Screenings

The U.S. Equal Employment Opportunity Commission recently updated guidance on permitted actions an employer may take to monitor employees for COVID-19 exposure. Changes have recently been implemented to provide some additional protections to employers.

In Case You Missed It

• New Workplace Guidance and Updates to Vermont’s Stay Home, Stay Safe Order
• Tax Revenues Not Bad for March, but Expected to Get Much Worse
• Business Leaders Warn Loss of VTC Campus Would Undermine Economy
• Boston Fed Outlines Grim Economic Consequences of COVID-19 Pandemic in New England

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Governor Scott Outlines Phased Restart of Vermont Economy

Governor Phil Scott today outlined an approach for the phased restart of Vermont’s economy. Effective on April 20, outdoor businesses and construction operations with crews of two or less and some single-person low contact professional services can operate if specified safety requirements are met. An addendum to an earlier Executive Order also institutes new health and safety requirements and encourages the public to wear cloth face coverings. Vermont Chamber staff are closely tracking updates related to COVID-19 that impact businesses and employers and communicating them swiftly with Chamber members and the public on a comprehensive COVID-19 Resources page.

Governor Scott Establishes Economic Recovery Task Force

Governor Phil Scott announced the establishment of the Vermont Economic Mitigation & Recovery Task Force this week. The task force is largely comprised of business and community leaders who will work with the Agency of Commerce and Community Development to assist in providing financial and technical support for businesses, local support and community action planning, and planning for the safe reopening of economic sectors. Among those named to the task force are several Vermont Chamber members, including Bill Shouldice, President and CEO of Vermont Teddy Bear Company, Chair of the Vermont Futures Project, and member of the Vermont Chamber of Commerce Board of Directors.

The Vermont Chamber will continue to actively engage with the Scott Administration and legislative leaders to ensure the business community is represented during the COVID-19 pandemic and as economic recovery begins.

Senate Reviews Potential Changes to Workers’ Compensation

After reviewing actions taken by other states, the Senate Committee on Economic Development, Housing and General Affairs reviewed draft legislation that would implement temporary changes to workers’ compensation. The legislation would provide the Department of Labor with authority during the state of emergency related to COVID-19 to amend or waive certain requirements and deadlines under current workers’ compensation law and to provide a presumption that medical workers and workers with routine contact with members of the public are entitled to workers’ compensation. The Committee is expected to continue review of the draft legislation on Monday.

House Committee Considers 3-Month Budget Bill

At the request of the House Committee on Ways and Means, the Joint Fiscal Office is exploring the option of a 3-month stopgap spending bill that would allow the State to operate a budget through September, with the Legislature returning in August or September to finalize the bill. The proposal would address problems arising from a lack of reliable budgetary forecasts. Due to federal and state deferments of many tax obligations until mid-July, budgetary forecasts cannot be accurately determined until after the new July 15 tax deadlines. If advanced, the stopgap funding measure would provide financial resources in the interim. Revenue shortfalls are currently anticipated in several areas, including the Education Fund, which is projected to emerge from fiscal year 2020 with a deficit of $39.5 million.

Paycheck Protection Program Runs Dry

Vermont businesses have raced to access the Paycheck Protection Program (PPP), with Vermont ranking third in the nation for the amount of PPP awarded per capita. As of Thursday, employers who have not finalized an application will need to wait until Congress allocates additional funding before loans can be accessed. Vermont’s banks and credit unions are encouraging employers interested in accessing PPP to continue to prepare application materials and meet with lenders, as additional congressionally provided funding is anticipated in the coming days.

In anticipation of a shortfall in funding, the Vermont Chamber sent a letter to Vermont’s congressional delegation last week requesting additional funds for the program. Congressional leaders are currently debating the framework for the next round of funding to supplement the program and possible additional guidelines for how the funds are utilized.

USDOL to Host Webinar on Families First Coronavirus Response Act

The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020, and requires certain employers to provide employees with paid sick leave or expanded family and medical leave for reasons related to COVID-19. USDOL will host a FFCRA webinar on Monday, April 20, at 9 a.m. Presentations will highlight the requirements of FFCRA as well as some of the included benefits for businesses. Steven McKinney, a Community Outreach Specialist for the U.S. Department of Labor’s Wage and Hour Division, will lead the presentation and following Q&A session.

In Case You Missed It

• Scott Announces First ‘Small Steps’ in Reopening Vermont Businesses
• Vermont to Join Multi-State Effort to Coordinate Coronavirus Recovery
• White House Unveils Coronavirus Guidelines on Path to Reopening the Country
• Leahy Named to Trump’s Council to Reopen U.S. Economy

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Governor Scott Lifts Ban on Future Bookings at Lodging Establishments

Today, Governor Scott amended his Stay Home, Stay Safe Order to allow Vermont lodging businesses to start taking online reservations immediately for stays beginning on June 15. We are pleased with the new guidance. Lodging reservations are often the first indicator of intent to travel. Allowing future online reservations to occur will help with the eventual economic recovery of the people who work in this industry and the communities that depend on this economic activity. The Vermont Chamber issued this statement in support of the Governor’s revised guidance.

When Governor Scott ordered the closure of lodging properties, guidance mandated that reservation systems be shut down, even for arrivals in future seasons. Since then, the Vermont Chamber has been advocating on behalf of the lodging sector, urging the Governor to amend his guidance to allow reservations for future stays.

The Vermont Chamber will continue to work with state leaders to elevate business community concerns and swiftly address issues during the COVID-19 pandemic. If you have any questions or comments on current lodging restrictions, please contact Amy Spear.

Vermont Chamber Requests Additional Congressional Relief for Businesses

The Vermont Chamber sent a letter yesterday to Congressman Peter Welch and Senator Patrick Leahy with suggestions for the next phase of federal relief to help businesses mitigate the developing economic crisis. The letter compiled requests from businesses that participated in a Vermont Chamber remote Tourism Town Hall last week. During the Town Hall, Congressman Welch heard questions and comments from over 150 Vermont tourism businesses about COVID-19’s impact on the industry.

Questions largely centered around the CARES Act. While recent federal relief packages do include many meaningful incentives for businesses, business owners remotely attending the Town Hall made clear that additional relief is needed.

Senate Committee Advances Evictions Legislation

The Senate Committee on Economic Development, Housing and General Affairs advanced legislation this week that temporarily bans certain foreclosure and eviction proceedings. S.333 largely mirrors a string of similar actions by county courts following the Vermont Supreme Court’s Judicial Emergency Declaration on March 16. Under the bill, foreclosure evictions would be restricted during and for up to 30 days after the conclusion of the State of Emergency.

Prior to this legislative action, financial institutions and landlords throughout Vermont proactively indicated they would not be proceeding on foreclosure orders during the COVID-19 pandemic.

Vermont Paycheck Protection Program Use

The Paycheck Protection Program authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The loan amounts will be forgiven as long as the loan proceeds are used to cover payroll costs and most mortgage interest, rent, and utility costs over the eight-week period after the loan is made, and if employee compensation levels are maintained.

Payroll costs are capped at $100,000 on an annual basis for each employee. Due to high subscription, it is anticipated that no more than 25% of the forgiven amount can be for non-payroll costs. While valuable to shuttered businesses, the program will require additional funding and additional use flexibility to fully meet the needs of the business community.

The Vermont Chamber recently sent a letter to Vermont’s congressional delegation requesting several improvements to the Paycheck Protection Program.

Vermont Manufacturers Answer the COVID-19 Call to Action

Vermont Chamber Vice President of Business Development Chris Carrigan published an op-ed this week on how manufacturers around the state are responding to COVID-19 with innovation, commitment to community, and action. The op-ed has been featured in Vermont Business Magazine, the Brattleboro Reformer, the Caledonian Record, and Bennington Banner.

To support the fight against COVID-19, the Vermont Chamber of Commerce, partnering with state and federal government agencies, is engaging manufacturers to quickly locate urgently needed medical supplies and to identify manufacturers who can retrofit and adapt their operations to manufacture essential personal protective equipment (PPE), medical devices, and life-saving medicines.

To learn more, please contact Chris Carrigan.

In Case You Missed It

• 70,000 Vermonters Have Filed Unemployment Claims Since Crisis Began
• State Creates Alphabetized Unemployment Filing System
• Senate Returns to Montpelier to Approve Remote Voting Measure
• Downgraded: Coronavirus Is Ravaging Vermont's State Budget

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Vermont Chamber Testifies in Senate on COVID-19 Business Impacts

Vermont Chamber President Betsy Bishop remotely testified in the Senate Committee on Economic Development, Housing and General Affairs on some of the immediate impacts of the COVID-19 crisis on businesses. While much of the Committee’s focus centered on tenant-landlord relations, testimony delivered by the Vermont Chamber reflected the unprecedented difficulties facing every sector, including commercial property owners who have exhibited considerable flexibility in working with business tenants, while also balancing their own immediate financial obligations.

The Vermont Chamber is communicating daily with legislative leaders about the concerns of the business community and advocating for policy changes that address the needs of Vermont businesses

Vermont Chamber Asks Tax Committee to Act on Meals and Rooms Tax Abatement

The Vermont Chamber submitted testimony to the House Committee on Ways and Means, advocating for abatement of February and March meals and rooms tax obligations. The restaurant and lodging industries were some of the first sectors to feel the economic impact of COVID-19 related closures. Because of efforts lead by the Vermont Chamber, the Scott Administration provided temporary relief from penalties for late filing and payment of the February and March meals and rooms tax. Unilateral executive action can only provide temporary relief of payment obligations, and with hundreds of Vermont businesses in dire need of liquidity, the Vermont Chamber is continuing to advocate for full abatement of these obligations through additional legislative action.

The Committee is expected to review the issue further. If you have questions or comments about our recent advocacy on behalf of Vermont’s tourism sector, please contact Amy Spear.

Vermont Chamber Pushes for Clarity on Unemployment Changes

With expansion of Unemployment Insurance (UI) eligibility at the state level and new federal compensation that amounts to more than 100% wage replacement for claimants, in some cases, Vermont businesses are concerned about a disincentive for employees to return to work. The problem is especially apparent in essential businesses that often struggle to maintain the workforce necessary to operate.

Guidance and rules related to the recently passed $2 trillion CARES Act have not yet been finalized. In the meantime, the Vermont Chamber routinely converses with federal and state officials and the Congressional delegation to push for clarity, especially around the circumstances with which workers can voluntarily separate from their employer and remain eligible for UI benefits. State officials plan to publish additional guidance as soon as related federal guidance is finalized.

Vermont Chamber Testifies in House on COVID-19 Economic Impacts

The Vermont Chamber updated the House Committee on Commerce and Economic Development on some of the COVID-19 related challenges facing businesses and advocated for February and March meals and rooms tax abatement. Additionally, the testimony highlighted some of the manufacturing sector’s work in re-tooling plants or providing supplies to respond to shortages of critical products necessary for the COVID-19 response. The Vermont Chamber routinely communicates with members of the Vermont House to help ensure the business community is fully represented during this crisis.

Vermont Chamber Hosts Remote Town Hall Event with Rep. Welch

Congressman Peter Welch heard from over 150 tourism businesses during a Vermont Chamber Tourism Town Hall call about how COVID-19 is affecting Vermont’s hospitality and lodging industry. The Town Hall was an opportunity for tourism businesses to further Congressman Welch’s understanding of COVID-19’s impact, share ideas, and help shape what future assistance might look like. Questions largely focused on provisions included in the recently passed CARES Act. While the federal relief package includes several meaningful incentives for businesses, like payroll loans subject to forgiveness and grants of up to $10,000 to address economic injury, one business owner made clear that additional relief is needed. Congressman Welch articulated his commitment to fight for additional relief for businesses in the coming weeks.

A full recording of the call is available on the Vermont Chamber COVID-19 landing page. For questions or to elaborate on how the crisis is impacting your tourism business, please contact Amy Spear.

Lodging Industry Receives Additional Guidance on Bookings

Governor Scott issued additional guidance on the acceptable continuation of lodging operations. Under the clarifying guidance, lodging may only be provided to individuals supporting the state’s COVID-19 response, those maintaining critical infrastructure, vulnerable populations including homeless individuals, and as quarantine facilities as arranged by the State. All online reservations have been ordered temporarily suspended. The Vermont Chamber issued a statement in response to the Administration’s clarifying guidance.

The Vermont Chamber is communicating daily with the Administration to better determine when reservations for future dates can be safely permitted. In the meantime, reservations for currently permitted guests should be conducted by phone. Lodging properties may permit existing guests to remain through the end of their scheduled stay, but they are not permitted to extend reservations.  Lodging properties that do not comply may be subject to fines or penalties as outlined by the Attorney General. State officials are having a particularly difficult time accounting for guests staying at short-term rentals (STRs), as no comprehensive registry exists for STRs in Vermont. The Vermont Chamber has long called for such a registry to facilitate consistency between STRs and traditional lodging establishments.

If you have questions about executive order impacts on your lodging establishment, please contact Amy Spear.

In Case You Missed It

• Unemployment Claims 36 Times Higher Than Last Year
• Paid More to Stay Home? Legislation Leads to Unintended Consequences
• Vermont Manufacturers Switch Gears to Make Protective Medical Gear
• Verizon and LISC Come Together to Support Small Businesses with COVID-19 Recovery Fund

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