HVEDC Video Chat with Senator Chuck Schumer on Proposed COVID 4 Relief Bill

1. The SBA loans in the CARES Act are very slow to distribute to businesses. Banks are overwhelmed with all the requests and it seems like the SBA is making its own interpretations that go beyond the legislative text in the CARES Act. What’s being done to get money out the door to hurting businesses faster and to keep them informed throughout the process?

The Administration’s roll out of the SBA programs in the CARES Act has been a mess. Struggling small business owners and nonprofits, like so many from the Hudson Valley on our call, have been given conflicting and confusing information time and time again.

Far too many businesses have been turned away by participating banks or left frustrated because their bank isn’t SBA-certified. And many lenders can’t facilitate loans and get money to small businesses they have already approved because they are waiting for the SBA to process the award.

Just last week, for example, my Hudson Valley office received a message from Sawyer Savings Bank in Ulster County who was having issues reactivating their SBA lender account to process 30 loans for local Ulster County businesses. They persistently called and emailed the SBA without hearing back, all while they feared that their businesses were in danger of not receiving SBA money. Luckily, I helped Sawyer Savings and we fixed their issue. SBA needs to fix their processing system immediately.

I am also pushing the Administration to quickly add more financial institutions to the program so everyone’s bank is participating. Just recently, I proposed a $60 billion set-aside in SBA’s Paycheck Protection Program for community-based lenders like CDFIs, Minority Depository Institutions, and small credit unions and banks so these lenders can expand access to the program.

Small businesses in rural areas should have access to funds even if they’re not customers of larger banks. Same for minority-owned businesses. Small banks and funds should be able to provide this help NOW.

The bottom line is that the Administration needs to immediately address these issues and we in Congress need to fix these problems as we invest more money to ensure assistance is getting to every eligible small business and nonprofit.

2. The ECONOMIC INJURY DISASTER LOAN (EIDL) and Paycheck Protection Programs are reported running out of money. Will new additional funds be forthcoming to assist small businesses and what kind of additional relief can we expect from Congress over the next few weeks?

I agree that we need to replenish funding for SBA’s programs and am pushing for $185 billion in more money for SBA’s Paycheck Protection Program. I believe we also need to make improvements to this program so these additional funds make it to small businesses in need. I’m advocating for a $60 billion set-aside for community-based financial institutions that can expand access to this money for more local businesses.

I am also pushing for $65 billion for SBA’s Economic Injury Disaster Loans and Grants. And we also make our farms eligible for all of this assistance.

3. Why are 501(c)(6), like chambers of commerce, not eligible for SBA loans and is there any possibility of them being included in future legislation?

Chambers are vital for our communities as a necessary link to assist many businesses at this time. A broader selection of 501(c)’s may be eligible as a private, nonprofit for the SBA’s Economic Injury Disaster Loan Program. This is a low-interest (2.75% or lower), long-term loan. The recent stimulus also added a $10,000 grant to each EIDL loan request. The SBA guidance on 501(c) eligibility for EIDL includes stipulations around political activity and lobbying.

The 50% refundable tax credit that nonprofits are eligible for may also be worth considering.

We will also be looking at ways to expand nonprofit eligibility in the next stimulus bill so assistance is available to more organizations in need.

4. Will the federal government provide funding to rebuild the tourism and hospitality industry in the Hudson Valley?

Tourism and hospitality industry has taken off in the Hudson Valley in recent years. The postponement of LEGOLAND’s July 4th grand opening is just one example of how this pandemic will be devastating to the local hospitality industry that anticipated reaching new heights in the coming weeks.

The SBA’s PPP program and disaster loans and grants can provide critical assistance to, hotels, restaurants and other hospitality businesses that may be struggling. The CARES Act also included $1.5 billion for the Economic Development Administration to increase business capital at the local level and support regional development efforts, including tourism promotion when we are able to emerge from this public health emergency.

5. Will you push to bring back the State and Local Tax (SALT) deduction?

It remains unclear how broad the scope of the next package will be, but I would love to provide some economic relief to the middle class through a rollback of the SALT deduction cap. We are thinking though the mechanics of what that could look like — Speaker Pelosi has suggested retroactive for the past two years. I would also like to do something prospective.

However, Senate Republicans remain very strongly opposed to undoing the cap. Chairman Grassley has said publicly he absolutely won’t allow it to be undone this year. We will have to see how the conversations go as the next package develops.

6. When and how do you expect the heroes fund to be established?

The “Heroes Fund” consists of two major components: a $25,000 premium pay increase for essential workers, equivalent to a raise of $13 per hour from the start of the public health emergency until December 31, 2020, and a $15,000 essential worker recruitment incentive to attract and secure the workforce needed to fight the public health crisis. I am pushing for this in the fourth emergency package.

7. The first $30B from the CARES Act was distributed unfairly to NY. We have borne the vast majority of the burden of this virus and need more dollars for the safety net system who have higher Medicaid and Medicare Advantage burdens and the Medicare FFS allocation doesn’t support. Can you help NY get more of the remaining $70B?

The Administration is not following Congressional intent in distributing the $100 billion that I secured for health care providers and this has disadvantaged the areas hardest hit by the coronavirus, like New York.

Today (April 14th) I am releasing a letter along with Senators Murray and Wyden calling on the Administration to allocate the funding in a more targeted manner that better equips our New York hospitals and providers with resources they need to fight this virus.

I’ve also personally called Vice President Pence, Secretary Mnuchin and others in the Administration to tell them they need to prioritize our state which is the epicenter of this pandemic.

8. With the loss in revenues for local governments (sales tax, mortgage tax, and building fees) due to COVID-19, what assistance will be provided by the federal government to municipalities so they can continue to provide the services our residents and businesses rely on?

Democrats are exploring different ways to direct more federal dollars to state and local governments who are facing massive budget shortfalls due to the virus. I am working with the New York Congressional Delegation to maximize what local entities receive including making sure that county governments, who bear large costs for the public health response and are greatly impacted by lost tax revenues, continue to receive assistance.

The CARES Act provided $193 million in immediate CDBG funds for New York State including over $11.2 million for local governments in Dutchess, Orange, Rockland, Ulster and Westchester Counties. Additionally, the CARES Act state and local fund included $5.1 billion for the State of New York and $168 million for Westchester County. In an earlier relief package, I secured over $92.1 million for Hudson Valley county governments in FMAP funding.

9. Can you help make PPE (like gowns, gloves, and N95’s) more available for our agencies?

I have called on the President to designate a “czar” with broad authority to oversee the production and distribution of resources like masks, gowns, and ventilators. A senior military officer with logistics experience should take on this role managing the medical supply chain and ensuring that critical resources are fairly distributed in a coordinated way to states with critical need, like New York, as they fight the virus.

10. There is an urgent need for more child care financial assistance as parents return to work. Will you fight for increasing more CCDBG funding in the next stimulus bill?

We were able to secure a $3.5 billion increase in the CARES Act but we know that more needs to be done. When we originally contemplated CARES, we did not imagine that businesses and childcare centers would be closed for as long as they have been.
As discussions around items for a fourth bill continue, increasing funding for childcare to provide relief to working parents and families will continue to be a priority of mine.

11. Do you expect action on a federal infrastructure and/or transportation bill to help stimulate Post-COVID-19 economic recovery?

The current federal highway infrastructure law, the FAST Act, expires on September 30. I have worked to ensure that Congress passes either an extension of the current law or a new bill that provides funding certainty for essential transportation projects like the addition of a third lane to Route 17.

Ultimately, state Departments of Transportation have the final authority to decide how to use their funding but I will make sure they have the funding they need. Right now, our focus is on dealing with the immediate public health crisis and immediate economic fallout, but infrastructure investment must and will be part of the longer term recovery plan.