CARES Act Part 2 – COVID-19 Update

The COVID-19 pandemic sweeping the globe has created both a health crisis and an economic crisis unlike anything since the 1918 Spanish Flu. The chaos and fear that has been sown by this virus have impacted every local community, including those here in our part of Virginia. Since the outbreak in the United States began, Congress has acted swiftly to address the needs of Americans – most recently with Thursday’s passage of H.R. 266, the Paycheck Protection Program Increase and Health Care Enhancement Act. Although many small businesses have been denied access to emergency loans under the Paycheck Protection Program (PPP) since the program ran out of funds last week, its passage is good news for many small businesses still in crisis.

As your Representative in Congress, it is my top priority to make sure that you have the most up-to-date information you need to make the best decisions affecting you and your loved ones. On Monday, I hosted my third telephone town hall, and my second one pertaining specifically to the coronavirus crisis. I was joined on the call by Virginia’s Small Business Administration (SBA) Director Carl Knoblock and Virginia House Delegate Chris Runion to answer the questions of small business owners in our district and provide them with resources available to help them survive this onerous time with their businesses intact and their employees on the payroll. The call contained answers to many frequently asked questions. To listen to the audio of the telephone town hall, please click here.

In Washington, D.C., and in Richmond, leaders in both the legislative and executive branches of government have been taking action to address the health crisis and support our economy. On Thursday, the House passed a $500 billion deal to further assist small businesses and hospitals and expand our Nation’s testing capacity.

Last week, the PPP, which came into existence with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act last month, ran out of funds. In the past month, the PPP has been responsible for helping over 1.6 million businesses, including over 40,000 right here in Virginia, and saving over 30 million American jobs. It was absolutely critical that Congress replenishes the PPP’s funds, and after a week of negotiations, a deal was finally reached. The Paycheck Protection Program Increase and Health Care Enhancement Act includes a $310 billion PPP replenishment. On top of funding the PPP, the deal also:

• Provides an additional $310 billion in PPP loans:

o $30 billion in guaranteed loans for lenders with less than $10 billion in assets.

o $30 billion in guaranteed loans for lenders with $10 billion to $50 billion in assets.

• Provides an additional $10 billion for Emergency Economic Injury Disaster (EIDL) grants.

• Appropriates an additional $50 billion for the Disaster Loans Program Account.

• Allows agricultural enterprises as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) with not more than 500 employees to receive EIDL grants and loans.

• Provides an additional $75 billion for reimbursement to hospitals and healthcare providers to support the need for COVID-19 related expenses and lost revenue.

• Provides $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests, specifically:

o $11 billion for states, localities, territories, and tribes to develop, purchase, administer, process, and analyze COVID-19 tests, scale-up laboratory capacity, trace contacts, and support employer testing. Funds are also made available to employers for testing.

o $1 billion provided to the Centers for Disease Control and Prevention for surveillance, epidemiology, laboratory capacity expansion, contact tracing, public health data surveillance, and analytics infrastructure modernization.

o $1.8 billion provided to the National Institutes of Health to develop, validate, improve, and implement testing and associated technologies; to accelerate research, development, and implementation of point-of-care and other rapid testing; and for partnerships with governmental and non-governmental entities to research, develop, and implement the activities.

o $1 billion for the Biomedical Advanced Research and Development Authority for advanced research, development, manufacturing, production, and purchase of diagnostic, serologic, or other COVID-19 tests or related supplies.

o $22 million for the Food and Drug Administration to support activities associated with diagnostic, serological, antigen, and other tests, and related administrative activities.

o $825 million for Community Health Centers and rural health clinics.

o Up to $1 billion may be used to cover the costs of testing for the uninsured.

Every day that passed without this funding meant irreparable harm to an untold number of small businesses. While this replenished funding is long overdue, I am glad to see this legislation get to the President’s desk for the sake of American workers and small businesses.

The PPP was designed to help firms with fewer than 500 workers, not for multi-million dollar companies like Ruth’s Chris, and Shake Shack, or colleges and universities with multi-billion dollar endowments and foundations. Although we must work to keep businesses of all sizes and the jobs, products, and services they provide alive throughout the pandemic, it is not right that so many small businesses—including many in Virginia’s Sixth District—were not given priority in a program designed to help them. Thankfully, Treasury Secretary Steven Mnuchin has said that larger firms will now be blocked from using the program, and the President has called on some larger companies that had already obtained the loans to returning the money.

At cline.house.gov/covid-19, you can access further information about the coronavirus pandemic, including administrative, congressional, and state action that has been taken to curb the spread of the virus, resources for businesses, and information from the CDC on how to keep you and your families healthy. Rest assured, I will continue to monitor the situation in Virginia and around the country and work with my colleagues to ensure the full, coordinated force of the federal government is behind our efforts to stop the spread of this disease.

If you experience symptoms or have been exposed to someone recently diagnosed with COVID-19, contact your doctor immediately to determine if you need screening.

Centers for Disease Control Resources:
Centers for Disease Control
How to Protect Yourself
Symptoms and Testing
If You Are at Higher Risk
If You Are Sick
Frequently Asked Questions
Follow @CDCgov on Twitter

Other:
Coronavirus Timeline
Keep Americans Connected
Travel Advisories From Department of State
FDA FAQs Regarding Masks and Gowns
Resources for Educators
The FDA Has Not Approved Any Home Testing Kits for COVID-19
IRS Unveils Their People First Initiative
The Virginia Department of Health Has Activated Call Centers Throughout the Commonwealth
The Virginia Department of Emergency Management Has Begun Accepting Donations
Social Distancing Guidelines Extended to April 30
Army Asks Retired Soldiers in Health Care Fields to Come Back for COVID-19 Fight
Governor Orders Closure of Non-Essential Businesses and Schools
How could the coronavirus affect my visit to Washington, DC?
State Corporation Commission suspends service disconnections for 60 days
Virginia Employment Commission waives the one-week waiting period for unemployment benefits
Virginia DMV Closed – Driver and vehicle credentials have been extended 60 days
How to aid the relief effort
FDA Warns of Fraudulent Home Testing Kits
CDC Urges Americans to Limit Nonessential Travel
Trust Your Sources
Tax Day Moved to July 15th
Salem VA Medical Center Postpone All Non-Essential Procedures

Sincerely,

Ben Cline
Member of Congress

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