Governor Scott Proposes $400 Million Relief Plan

The economic recovery and relief package includes $310 million in immediate relief and is largely funded by the federal CARES Act, which provided Vermont with $1.25 billion. Over the last several weeks, the Vermont Chamber has pushed for a relief package to help Vermont businesses through mandatory closures and restricted restart and recovery periods. This economic relief package addresses much of the need highlighted by the Vermont Chamber during advocacy efforts.

Included in the recovery funds is a $90 million investment in economic recovery aid, additional funds for marketing Vermont, and emergency grants and loans to businesses that either closed, are primarily closed, or have experienced significantly reduced revenue. The proposal requires legislative approval and the Vermont Chamber will continue to work with legislative leaders to encourage immediate action.

February and March Meals and Rooms Tax Abatement Unlikely

After a coordinated push by the Vermont Chamber, Governor Scott directed the Commissioner of Taxes to exercise his authority to provide relief to Vermont businesses who owed March and April meals and rooms or sales and use tax. The Administration’s actions meant that business owners who were unable to meet the original deadlines would not be charged any penalty or interest on these taxes for late submissions. Due to a recently agreed upon budget plan that anticipates future collection of these taxes, it now appears unlikely that the Legislature will approve full abatement.

Legislature Revisits Single Use Plastics Ban for Lodging and Climate Bill

Legislators continued committee deliberation of bills unrelated to COVID-19 response or economic relief. The Senate Committee on Natural Resources reviewed the Global Warming Solutions Act (GWSA). If implemented, GWSA would establish an advisory council to assist in the implementation of policies that seek to revise Vermont’s current emissions goals, including a mandated emissions reduction to 80% below 1990 emissions levels by 2050. The Committee also reviewed a bill that would prohibit lodging establishments from providing single-use personal care products to guests. With many establishments closed or operating in a limited manner, the possibility of being forced to invest additional funds in retrofitting rooms with multiple-use dispensers is a daunting prospect for lodging operators.  There also exists considerable uncertainty around which community-use appliances will be permitted moving forward as a result of COVID-19 safety measures. This largely depends on rapidly developing guidance from state and federal health agencies.

The Vermont Chamber will continue to convey to legislators the reality that businesses require immediate action to ensure relief funds are distributed in a timely manner. At this time, businesses have little or no capacity to absorb additional administrative mandates or costs.

Vermont Chamber Submits Comment on Broadband Plan

After weeks of discussions with public and private stakeholders, the Vermont Chamber submitted public comment to the Department of Public Service (DPS) regarding the Department’s recently proposed Emergency Broadband Action Plan (EBAP). If implemented, the EBAP would deliver emergency broadband access to areas with limited or no connectivity. Currently, 23% of Vermont (69,899 business and residential locations) do not have access to broadband at 25/3 Mbps – the service speed that defines broadband under federal law. This speed is also sufficient for most current learn and work-from-home tasks.

The Vermont Chamber’s comments were supportive of the EBAP and called for public and private partnerships to address the immense need facing communities around the state who do not have access to broadband. The Vermont Chamber believes Vermont is well positioned to be a work-from-home capital and our team will continue working with state officials and the congressional delegation to advocate for the federal funding necessary for realizing this goal.

DOL Argues Workers’ Compensation Bill Unnecessary

During testimony delivered to the House Committee on Commerce and Economic Development, the Director of Vermont’s Workers’ Compensation and Safety Division explained to legislators that recently proposed changes to workers’ compensation eligibility may be unnecessary. DOL’s testimony pointed out that very few positive cases have been denied and that those who have had to stop working due to the virus have generally continued to receive wage replacement by their employers, which means there has been little need for the state to provide workers’ compensation payments.

The discussed legislation passed in the Senate despite little being known about the impact these changes could have on employer’s workers’ compensation insurance rates. The Vermont Chamber is communicating with House legislators to advocate for a result that does not place unsustainable additional costs on businesses, many of which continue to struggle financially as a result of the economic crisis brought on by the COVID-19 pandemic.

Vermont Chamber Assists Tourism Industry with Reopening Questions

The Vermont Chamber is the restaurant and lodging trade association for the state of Vermont and the designated state affiliate of the National Restaurant Association and the American Hotel and Lodging Association. As the statewide voice for Vermont’s tourism industry, the Vermont Chamber staff is well-versed on the Work Safe additions to the Be Smart, Stay Safe Order, and has been fielding reopening inquiries and providing clarifying guidance as businesses prepare to reopen.

As you prepare to reopen your tourism business and train your employees, please do not hesitate to contact Amy Spear with questions or concerns.

Resource Roundup

• Treasury Issues New PPP Guidance
  The Treasury has issued updated guidance, including an application form businesses can use to apply for forgiveness of PPP loans.
• 
  
• Steps to Prevent Water Quality Issues Before Your Business Reopens
  The Departments of Health and Environmental Conservation set up a website where building and facility managers can access guidance and recommendations for actions to take before a building’s drinking water is used again.
• 
  
• ServSafe Reopening Guidance
  ServSafe developed a free on-demand training video to train operators and staff to reopen restaurants with new COVID-19 health and safety guidelines.
• 
  
• Guide to PPP Loan Forgiveness
  The U.S. Chamber of Commerce created a guide designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.
• 
  
• Restaurants and Other Industries Receive Additional Reopening Guidance
  The Agency of Commerce and Community Development released additional reopening guidance this week covering a variety of industries, including restaurants. Details include information on new mandatory operating procedures and best practices for limited reopening.
• 
  
• Vermont Chamber to Host Lodging Townhall With Congressman Welch
  The Vermont Chamber of Commerce is hosting a Lodging Town Hall with Congressman Peter Welch. The topic of discussion is the effect of COVID-19 on the lodging industry in Vermont. Congressman Welch is interested in understanding how lodging properties have been impacted and what relief businesses will need now and in the future. This is an opportunity to ask questions, share ideas and have a say in what future assistance will look like. Questions may be submitted during the registration process.
  Details:
  • Date: Tuesday, May 26, 2020
  • Time: 11am-12 noon
  • Register here
    • Instructions to join the meeting will be sent with your registration confirmation

In Case You Missed It

• Restaurants Can Open for Limited Outdoor Dining Beginning Friday
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• Final Reading: Stricter Mask Requirements May Come From the Statehouse
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• Vt. Lawmakers to Address Scott Stimulus Plan Next Week
• 
  

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Vermont Chamber to Provide Periodic Legislative Updates

Late May is the time of year when the Legislature would typically adjourn and the Vermont Chamber would temporarily cease publication of our weekly legislative updates. In the weeks ahead, the Vermont Chamber will continue to publish Friday updates on an as-needed basis, depending on legislative activity. Now more than ever, it is essential that the business community have a voice in the State House. We are committed to ensuring you remain informed and impactful.

Legislature Turns to Sidelined Bills

The House and Senate advanced and deliberated on several bills unrelated to the COVID-19 pandemic or state government operations. This included Senate passage of S.337, which permits energy efficiency entities to use a portion of their budgets on programs to reduce greenhouse gas emissions in the thermal and transportation sectors, and House consideration of S.227, a bill that would prohibit lodging establishments from offering certain personal use products in small, disposable plastic bottles. The House Ways and Means Committee also recently contemplated mandating additional administrative requirements for businesses that collect meals and rooms tax revenue, as well as $50 million in new taxes on software as a service, certain beverages, candy, and luxury goods.

To the greatest extent possible, the Vermont Chamber will continue to convey to legislators the reality that businesses require immediate legislative assistance in the form of relief funds and have very little or no capacity to absorb additional mandates and costs.

Vermont Chamber Testifies in Senate on Tourism Impacts

Vermont Chamber Vice President of Tourism Amy Spear testified on the current state of the hospitality industry. Vermont’s restaurants and lodges were some of the first businesses forced to close after statewide restrictions were implemented in March. The testimony made clear that while some of the hospitality industry has benefited from federal relief programs, current need far exceeds available resources. Specifically, the testimony included requests that the Legislature work with the Administration to establish a grant program to provide resources to businesses impacted by mandated closures and reduced economic activity, maintain and enhance investment in marketing Vermont, and provide support for broadband buildout to the 23% percent of Vermont with limited or no connectivity.

If you have comments or concerns related to the impact of COVID-19 on your tourism business, please contact Amy Spear.

Legislature Continues Review of Broadband Proposal

The House Committee on Energy and Technology and the Senate Committee on Finance heard from a variety of public and private stakeholders this week on a recent broadband proposal created by the Department of Public Service (DPS). If implemented, the DPS plan would deliver emergency broadband access to areas with limited or no connectivity. Currently, 23% of Vermont (69,899 business and residential locations) do not have access to broadband at 25/3 Mbps – the service speed that defines broadband under federal law. This speed is also sufficient for most current learn and work from home tasks.

In April, Vermont Chamber President Betsy Bishop published an op-ed that called for reimagining Vermont as a work-from-home capital. One of the barriers to achieving this goal, also identified in the op-ed, is the lack of broadband connectivity in many towns. Work and learn from home obligations brought on by the COVID-19 pandemic have prompted a broader sense of public urgency on the topic of broadband access, adding to the number of advocates who have traditionally pushed for increased connectivity. Broadband access is essential to the resiliency and economic wellbeing of rural communities and the Vermont Chamber remains supportive of the DPS proposal.

If you have comments about how broadband access would impact your business, please contact Vermont Chamber Government Affairs Director Charles Martin.

Senate Committee Ready to Provide $300 Million in Economic Relief

The Chair of the Senate Committee on Economic Development, Housing and General Affairs indicated his Committee’s willingness to provide up to $300 million in relief for Vermont businesses. Funding for the relief program would likely be drawn from the $1.25 billion provided to Vermont in the CARES Act. The proposal was discussed during testimony delivered to the Committee by the Agency of Commerce and Community Development (ACCD), the Vermont Chamber of Commerce, and other industry representatives. Over the last several weeks the Vermont Chamber has pushed state leaders to provide additional relief resources for businesses. While many businesses have benefited from the federal relief provided March and April, most businesses will require additional financial resources to aid in recovery from the economic downturn brought on by COVID-19.

Federal Relief Package Introduced in U.S. House

The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act was introduced in the House of Representatives. The bill would provide $3 trillion in additional relief resources, including support and expansion of PPP so that it could be accessed by local chambers of commerce and other trade organizations involved in economic recovery efforts. In an April letter sent to Senator Leahy and Congressman Welch, the Vermont Chamber requested additional PPP resources and expansion of the program to include 501c(6) organizations. While the bill is expected to pass in the House, there are early indications it will face opposition in the Senate.

Evictions Bill Becomes Law

Governor Scott signed a law 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 new law, 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 being taken, financial institutions and landlords throughout Vermont proactively indicated they would not be proceeding on foreclosure orders during the COVID-19 pandemic.

State Budgets in Flux

Governor Scott called on state agency leaders to draft reduced budgets for the first quarter of fiscal year 2021. Reductions would amount to a decrease of 8% from regular operating budgets and was ordered as a response to losses brought on by COVID-19. The Administration’s order was followed by the House advancing H.953, an additional budget adjustment bill for fiscal year 2020 created in response to COVID-19 impacts. H.953 addresses the $200 million shortfall that is a result of the pandemic, including the estimated $57 million reduction in the general fund and the $143 million of fiscal year 2020 revenue that will now be collected in fiscal year 2021, due to federal and state tax due date extensions. The bill addresses these shortfalls and makes funds available to cover other COVID-19 response expenses. Appropriations committees are also currently debating their own “skinny budget” that would fund the state for the first quarter of fiscal year 2021.

Resource Roundup

• Vermont League of Cities and Towns Requests Business Community Input
  The Vermont League of Cities and Towns (VLCT) is asking the business community to elaborate on how the pandemic has impacted your business or a business in your community or region. VLCT would also like to hear ideas about how local governments can provide support to local businesses. This information will reinforce the national campaign for funding assistance to municipalities. You can find additional information on the effort here. If you would like to provide some information or have questions, please contact Maura Carroll at mcarroll@vlct.org.
• 
  
• Dartmouth-Hitchcock Health to Debut Virtual Webinar to Help Frontline Workers
  Dartmouth-Hitchcock Health has launched a mental health webinar series in response to the COVID-19 global pandemic. The series features Dartmouth-Hitchcock and Dartmouth Geisel School of Medicine experts who discuss the challenges and concerns brought about by the COVID-19 pandemic and social isolation. This webinar is a six-part series streaming live each Wednesday.
• 
  
• Norwich University to Host Free Virtual Education Fair
  In order to provide professionals support in response to COVID-19, Norwich University Online has created a free virtual education fair webinar series hosted by experts in the field. The Norwich University Online Virtual Education Fair will host six free 45 minute webinars on Thursday, May 21, 2020, from 1:30 - 5:00 p.m. Details here.
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• Paycheck Protection Program Funds Remain Available
  The Small Business Administration (SBA) is reporting $119 billion in Paycheck Protect Program (PPP) funds remain available for use by small businesses. If you are interested in accessing this loan program, please contact the SBA Vermont District Office.
• 
  
• Call for Restaurant Survey Responses
  The National Restaurant Association Research Group is conducting a survey to aid in the collection of data for use in shared communications and advocacy activities regarding coronavirus.

In Case You Missed It

• Scott Extends Vermont's State of Emergency Into June
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• Comcast Expands Service to 430 Addresses
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• Booze Blues: Liquor Sales Are Up, but Vermont’s Alcohol Industry Is Struggling
• 
  
• Business Leaders Remain Cautious
• 
  
• New Survey Shows Many Vermonters in Favor of Telecommuting

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Reopening Child Care Centers Paves Way for Return to Work

Governor Phil Scott announced today that child care centers can begin to reopen on June 1 and summer day camps will be able to operate this summer. As Gov. Scott noted during his press conference, child care is a key component as the state reopens and Vermonters return to work. In mid-March, Vermont child care centers across the state were ordered to close for normal operations but were encouraged to continue providing services for workers essential to community mitigation of COVID-19. In mid-April, Gov. Scott outlined an approach for the phased restart of Vermont’s economy. State and federal recommendations for businesses continue to evolve rapidly. The Vermont Chamber is tracking important updates related to Vermont’s reopening plans and safety during the pandemic that impact businesses and employers.

Tax Committee Proposes $50 Million In Increases

The House Committee on Ways and Means discussed an anticipated Education Fund shortfall of $167 million in fiscal year 2021. With uncertainty around whether CARES Act funds may be used to provide revenue replacement, the Committee reviewed potential tax increases at the state level that were identified as possible revenue sources. Areas identified for future tax increases included:

• Candy (~ $3 million)
• Tobacco tax ($1 increase in tobacco tax ~ $6.7 million)
• Sugar-sweetened beverage tax ($25 million)
• Cloud tax ($7 million)
• Luxury ($7 million)

A temporary COVID-19 sales tax surcharge, beer tax, and increased service taxes were also suggested. With entire economic sectors shuttered or limiting operations, businesses have little capacity to absorb the burden of significant tax increases. The Vermont Chamber will continue to oppose unsustainable tax increases that could exacerbate the present economic downturn.

Senator Leahy Signs Letter to Treasury Calling for PPP Changes

Senator Leahy was one of several members of the U.S. Senate who signed a letter calling on the Treasury to increase the percentage of Paycheck Protect Program (PPP) loans that can be used for non-payroll expenses. Currently, PPP loans will only be fully forgiven if borrowers spend at least 75% of proceeds on payroll expenses, leaving only 25% for non-payroll costs. The U.S. Senate letter specifically asks the Treasury and Small Business Administration to permit up to 50% of the PPP loans to be authorized for expenses other than payroll costs. These costs could include rent, utility payments, and other fixed monthly obligations. In April, the Vermont Chamber sent a letter to the congressional delegation recommending changes to PPP.

House Committee Debates New Meals and Rooms Tax Mandates

Following a push in March by the Vermont Chamber and industry partners, Vermont’s Tax Commissioner temporarily lifted penalties associated with late payment of February and March meals and rooms taxes to provide the restaurant and lodging industry with relief after mandated closures due to COVID-19. Several members of the House Committee on Ways and Means have expressed dismay over the Tax Commissioner’s waiving of these fees. On Wednesday, members of the Committee discussed potentially stripping the Commissioner of this authority in the future. The Committee also discussed mandating that restaurants and lodges hold all meals and rooms tax collections in a separate bank account and provide payments to the State more frequently.

The Vermont Chamber strongly opposes these changes. We recognize the unprecedented hardship that Vermont’s restaurants and lodges are facing, and we are working to ensure they are not burdened with additional mandates in a time when many businesses are struggling to survive.

Governor Scott Lifts Certain Outdoor Recreation Business Restrictions

In Addendum 13 to Executive Order 01-20, Governor Scott lifted certain restrictions related to outdoor recreation. The Addendum permits all businesses, nonprofit organizations, and government entities that support or offer outdoor recreation or fitness, and require low or no direct physical contact, to resume operations. These businesses are required to comply with the health and safety guidelines outlined in Addendum 13. Impacted entities include, but are not limited to, state and municipal parks, recreation associations, trail networks, golf courses, big game check stations, and guided expeditions. Campgrounds, marinas, and beaches are not permitted to reopen at this time.

Broadband Conversation Continues

In April, Vermont Chamber President Betsy Bishop published an op-ed that called for reimagining Vermont as a work-from-home capital. One of the barriers to achieving this goal, also identified in the op-ed, is the lack of broadband connectivity in many rural Vermont communities. Overall costs remain the greatest barrier to additional broadband buildout. This is why the Vermont Chamber was encouraged by the Department of Public Service’s (DPS) proposal of a solution that would take advantage of federal relief funds provided in the recently passed CARES Act.

The Vermont Chamber is excited about the prospect of bringing broadband connectivity to Vermont’s underserved communities, and we fully support the DPS Broadband Development Plan. We continue to hear from businesses across the state expressing support for investment in broadband infrastructure. If you have comments about how broadband access would impact your business, please contact Vermont Chamber Government Affairs Director Charles Martin.

Vermont’s Businesses Will Require Ongoing Relief

While many businesses are benefiting from federal and state relief already provided, the hardship facing Vermont’s small businesses is anticipated to continue for some time. Governor Scott recently indicated that due to ongoing safety concerns, the state is not yet ready to wholeheartedly welcome out-of-state visitors. With out-of-state tourism spending representing a significant portion of the business community’s revenue, businesses will require additional and sizable relief to weather the economic downturn brought on by COVID-19.

The federal CARES Act provided Vermont with $1.25 billion, making this funding pool the logical source for future state relief packages. As Vermont enters what would have otherwise been peak season for many businesses, we are doubly reminded of the unprecedented circumstances facing the business community. Keeping in mind this immense and ongoing need, the Vermont Chamber is working with state officials to develop an equitable relief package that properly accounts for the needs of the state’s diverse business community.

Resource Roundup

• Retail & Grocers and Specialty Foods Associations Offer Expanded Guidance
  Vermont Retail & Grocers Association (VRGA) and Vermont Specialty Food Association (VSFA) are offering an expanded series of webinars for members on topics related to operating during the COVID-19 Pandemic. Webinars are open to all VRGA and VSFA members, as well as prospective members for a limited time.
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• Treasury Provides Updated Guidance Related to PPP Forgiveness
  The Treasury issued updated guidance around PPP forgiveness. The guidance specifically addresses scenarios when employers offer to rehire an employee who was previously laid off and that employee declines the offer. The Treasury determined this would not negatively impact the amount of loan forgiveness provided to the employer.
• 
  
• Department of Labor Updated FFCRA Website
  The Department of Labor updated their Families First Coronavirus Relief Act (FFCRA) web page with guidance that includes webinars and a Q&A sheet. For questions about FFCRA compliance, please contact Steve McKinney at the U.S. Department of Labor.

In Case You Missed It

• Summer Tourism Looks Bleak; Scott Tells Visitors to Stay Away, for Now
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• Weekly Unemployment Claims Fall by Over 1,000 but Still Historically High
• 
  
• Scott Administration Proposes Plan to Fill $200 Million Budget Gap
• 
  
• Many Vermonters Interested in Telecommuting After COVID-19 Crisis, Survey Finds
• 
  
• Final Reading: Statehouse Leaders on Board With Scott’s Budget Plan
• 
  
• Congressional Delegation Sets Priorities for Second COVID-19 Stimulus Bill

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Vermont Chamber Prompts Additional Restart Guidance

In response to business community inquiries about Governor Phil Scott’s recent order which permitted certain additional reopenings, the Vermont Chamber worked with the Administration to generate clarifying guidance. The new guidance enables out-of-state workers to commute to an essential job in Vermont or commute to a job in compliance with the Phased Restart Work Safe Guidance if that worker commutes directly to and from their work site. The changes also allow the use of break rooms if required social distancing and cleanliness measures are adhered to. For many businesses, particularly manufacturers contracting with the federal government, out-of-state commuters and on-site break room use are essential to operations.

The Vermont Chamber has received hundreds of similar inquires over the past several weeks and we continue to field these questions directly to Administration officials so that safe and sustainable solutions can be developed.

Phased Business Restart Continues

Governor Scott has released Addendum 12 to the Stay Home, Stay Safe Executive Order, which includes updated mandatory health and safety guidelines for the continued phased restart of businesses in the state. It also updates guidance for outdoor businesses, construction, manufacturing, and distribution operations. The Agency of Commerce and Community Development has also released a Memorandum to Businesses and Employers that provides additional clarification on Addendum 12.

Clarification Provided on UI Experience Ratings

In early March, the Vermont Chamber advocated for passage of a bill that relieved employers of charges against an employer’s unemployment insurance (UI) experience rating when a business reduced or furloughed staff because of COVID-19. While passage of the bill served as welcomed relief for many businesses, uncertainty remained around whether instances of partial unemployment would also qualify for UI charge relief. In response to inquiries by the Vermont Chamber, the Department of Labor clarified that the bill allows for charge relief for weeks of partial unemployment, if the reduction in hours was attributable to the pandemic.

Senate Passes Bill to Expand Workers’ Compensation

The Senate passed a bill that would implement temporary changes to workers’ compensation coverage that would remain in effect during the State of Emergency and for up to 45 days after. If passed into law, the changes would provide a presumption that certain workers 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 an employer’s workers’ compensation insurance rates. The Vermont Chamber is communicating with House legislators to advocate for a result that does not place unsustainable additional costs on businesses, many of which continue to struggle financially due to the COVID-19 pandemic.

The Way Forward on Broadband

Last week, Vermont Chamber President Betsy Bishop published an op-ed that called for reimagining Vermont as a work-from-home capital. One of the barriers to achieving this goal, also identified in the op-ed, is the lack of broadband connectivity in many Vermont communities. Cost estimates for resolving this problem remain around $300 million, and efforts to build out broadband infrastructure have routinely encountered difficulty in the Legislature as expressed in last week’s Downs Rachlin Martin blog. With the COVID-19 pandemic making working and learning from home the new normal across the state, officials from the Department of Public Service (DPS) have proposed a potential $293 million solution that would take advantage of federal relief funds provided in the recently passed CARES Act. The DPS proposal would capitalize on the $1.25 billion provided in the relief package.

With fiscal constraints existing before the pandemic and revenue shortages anticipated after the last few months of reduced economic activity, this proposal is the most realistic potential solution to date. The Vermont Chamber is excited about the prospect of bringing broadband connectivity to Vermont’s underserved rural communities and we fully support the DPS Broadband Development Plan as a way forward for reimagining Vermont’s economy post-COVID-19.

Senate Advances Essential Worker Hazard Pay Bill

The Senate Appropriations Committee advanced $60 million in essential worker hazard pay legislation. The intent of the legislation is to provide grants to certain essential workers for up to two months. Under the proposal, eligible employees include grocers, pharmacists, trash collectors, dentists, childcare workers, homeless shelter staff, and others who are required to interact with the public in some capacity. If passed into law, money for the program would be drawn from the state’s Coronavirus Relief Fund, which was created with the $1.25 billion provided to Vermont in the federal CARES Act.  Employees who work over 108 hours a month would receive a $1,000 monthly grant and employees who work at least 34 hours a month will receive $600 monthly. An estimated 33,500 workers would qualify for some of the $60 million.

House Passes Evictions Bill

The House passed 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 being taken, financial institutions and landlords throughout Vermont proactively indicated they would not be proceeding on foreclosure orders during the COVID-19 pandemic.

Congressional Delegation Urges Treasury to Provide Clarity on PPP Loan Forgiveness

In response to widespread business community uncertainty about the extent of loan forgiveness that will be authorized under the Paycheck Protection Program (PPP), Senator Leahy, Senator Sanders, and Representative Welch sent a letter to the Treasury and the Small Business Administration urging leadership in D.C. to provide additional guidance about loan forgiveness provisions. Vermont has seen some of the nation’s highest use of the PPP per capita, with $1 billion disbursed and nearly 7,000 businesses having accessed the program by the time the first round of funding for the program ran out. Additional PPP funding was authorized last week.

In April, the Vermont Chamber sent a letter to Vermont’s congressional delegation advocating for additional PPP funding and also for changes that would better guarantee loan forgiveness in situations where employers use the program to provide pay increases. The Vermont Chamber is routinely communicating with the congressional delegation to reflect concerns raised by the business community about federal relief resources.

Vermont Chamber Readies Manufacturing for Phased Reopening

As restrictions are further lifted and phased reopening efforts continue, Vermont’s $3 billion manufacturing, fulfillment, and distribution sector will require explicit guidance on health and safety requirements mandated by the State to resume operations. The Vermont Chamber, along with the Vermont Manufacturing Extension Center and industry partners, has been appointed to a sub-taskforce supporting Governor Scott’s Restart Vermont Guidance Advisory Council. The sub-taskforce is charged with developing phased reopening policies related to manufacturing. The sub-taskforce is also actively involved in long-term economic recovery planning. To learn more or to provide input, please contact Chris Carrigan.

Resource Roundup

The Agency of Commerce and Community Development (ACCD) is maintaining a recovery resource page with guidance related to recent executive actions and additional recovery resources.

VOSHA and Health Department Provide Return to Work Training

Governor Scott detailed new measures, including online training requirements for reopened workplaces in Addendum 11 to Executive Order 01-20 issued last week. The Vermont Occupational Safety and Health Agency (VOSHA) has developed training and other materials to inform Vermonters on appropriate safety measures necessary to return to work amid the COVID-19 pandemic.

DOL Waiving Employer Penalties

The Department of Labor is asking for first quarter wage reports and is waiving penalties employers may have received for delays in providing separation forms and wage verification requests. If an employer has received a penalty in error, or believes it should be waived, they may submit the request for waiver by filling out an online request form here.

SBA Resource Page

The Small Business Administration (SBA) is regularly updating a page with information related to COVID-19 relief funding for businesses. Some of the programs highlighted by the SBA include the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), SBA Express Bridge Loans, and SBA Debt Relief programs.

In Case You Missed It

• DOL: Unemployment Claimants Called Back Must Accept Suitable Work
• 
  
• Vermont Manufacturing, Fulfillment, and Distribution Sector Reopening Plan
• 
  
• Vermont Could Lose $430 Million in Revenue Next Fiscal Year, Economist Says
• 
  
• Labor Dept. Provides First Round of PUA Payments to Vermonters
• 
  
• Winemakers and Brewers Worry About Surviving Expected Summer Losses
• 
  
• As Vermonters Return to Work, Who Will Take Care of the Children?
• 
  
• UVM Telecommuting Survey – Is Telecommuting Here to Stay?
  • Researchers at the University of Vermont are examining prospects for telecommuting now and in the future. The survey results are meant to guide additional research into the opportunities and obstacles for continued telecommuting. Responses are confidential.
  • Fill out the survey here.
  • More background here. Contact Richard Watts at UVM with any questions.

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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

This Edition Sponsored By Vermont Gas Systems

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