House Passes Initial Relief Package
Legislative Group Calls for Restricting Relief Funds Eligibility
Vermont Chamber Testifies on Broadband Need
Paycheck Protection Program Changes Now Law
Resource Roundup
In Case You Missed It
House Passes Initial Relief Package
After passing in the Senate last week, the House passed S.350, the Legislature’s initial relief bill developed from the economic recovery and relief package proposed by the Scott Administration in late May. As originally drafted, the relief package provided $250 million in financial relief to impacted businesses. The Vermont Chamber called for significant changes to the relief proposal in recent testimony.
As passed, S.350 provides $70 million in grants, distributed through the Department of Taxes, with the Agency of Commerce and Community Development (ACCD) assisting the Department of Taxes in vetting distribution of the funds. $20 million of the funds will be distributed through regional economic development organizations, with oversight by ACCD. The entirety of the relief package is restricted to businesses who are able to demonstrate 75 percent or greater reduction in total sales in any one-month period from March 1, 2020 to September 1, 2020 as compared to the same one-month period from March 1, 2019 to September 1, 2019. Provisions were also added to the bill to hold harmless businesses in situations where funds are distributed outside of technical compliance with federal guidelines. While unlikely, in situations where funds are inappropriately distributed, the added provision makes state agencies, and not individual businesses, liable for repayment to the Treasury.
During his report of the bill to the House Committee on Appropriations, the Chair of the House Committee on Commerce and Economic Development acknowledged this first round of funding is far from enough to satisfy current need in the business community. The Chair indicated his committee is now working to advance an additional relief package, which is set to include an additional $80 million. The Vermont Chamber is working to ensure these and additional funds are advanced expeditiously and are widely accessible to Vermont businesses.
Legislative Group Calls for Restricting Relief Funds Eligibility
A group of 29 legislators called on the House Committee on Commerce and Community Development to restrict access to the Vermont Economic Injury Disaster Loan and Grant program or similarly enacted programs to businesses who offer their employees between 140 and 160 percent of the current minimum wage and comply with five other qualifying criteria. If enacted the proposal would severely limit eligibility for potential relief funds to a portion of Vermont businesses, including rural small businesses that would experience a disproportionate negative impact if the proposal were to advance.
The Vermont Chamber continues to advocate in the Legislature for passage of relief packages that offer the greatest eligibility flexibility possible for distressed businesses. Doing so is essential to ensuring equitable access to relief resources across Vermont’s business community.
Vermont Chamber Testifies on Broadband Need
The Vermont Chamber testified this week in the Senate Committee on Finance to highlight the need for broadband connectivity in unserved Vermont communities. Currently, 23 percent of Vermont (69,899 business and residential locations) does not have access to broadband at 25/3 mbps – the service speed that defines broadband under federal law. This speed is also more than sufficient for most current learn- and work-from-home tasks. During testimony, the Vermont Chamber encouraged senators to work to advance funding to provide broadband to households currently unable to work from home, learn from home or receive telehealth services because of connectivity limitations.
Debate continues in the Legislature around what internet speed goal should serve as the threshold to qualify for state infrastructure funds. While the Vermont Chamber recognizes the need to safeguard state funds and invest in lasting infrastructure projects, we are also cognizant of the reality that thousands of Vermont households lack access to federally defined broadband, which places those households and their communities at a staggering public health, academic, and economic disadvantage. We will continue to encourage the Legislature to quickly act to provide broadband access to unserved communities
Paycheck Protection Program Changes Now Law
The Paycheck Protection Program Flexibility Act (PPPFA) became law late last week. PPPFA makes several changes to the existing program, including extending the covered period from eight weeks to 24 weeks, extending the date to restore your full-time employees from June 30 to December 31, and increasing the term of a loan to a minimum of five years, from two years. PPPFA also provides an additional provision that enables forgiveness to be determined without regard to a proportional reduction in employees. This change would apply in circumstances when an employer is able to document the inability to rehire an employee who was on payroll on February 15, the inability to rehire a similarly qualified employee, or the inability to return to the same level of business activity they had prior to February 15 due to COVID-19 restrictions. The Vermont Chamber pushed for the changes included in the PPPFA in our advocacy with the congressional delegation.
Resource Roundup
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Vermont Chamber Passport to Recovery
The Vermont Chamber’s new Passport to Recovery portal is dedicated to the Vermont community in place of our Workforce & Talent Summit and shares timely webinars to help businesses, employers, and employees across the state. Economic, sales & marketing, health, and workforce webinars will be provided through June and July. -
Money.com: Best Small Business Loans of 2020
Money.com compiled their take on the best small business loans of 2020. While the best loan will depend on multiple individual factors, they note that some lenders stand out for their low starting rates, fair loan terms, and easy application process. -
Vermont Chamber Conducts Lodging Restart Survey to Guide Advocacy
The Vermont Chamber is conducting a survey of the state's lodging properties. Responses will help inform the Chamber's advocacy efforts. Please contact Emily Rivers with any questions. -
Department of Labor RETAIN Program Provides Return to Work Resource
Vermont Retaining Employment and Talent After Injury/Illness Network created a checklist resource to help guide employers and employees as they return to work. Please contact Deborah Kennedy with questions.
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