Small Business Assistance
The Small Business Administration (SBA) of the US Government can provide up to $2 million in disaster assistance loans to provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
Update on State Budget Timeline
The state is considering an omnibus provision within the state budget to extend all outstanding local home rule bills - sales tax, mortgage recording tax, etc. We are continuing to urge leadership in both houses to reject Part R (the Medicaid amendments).
The State Capitol has been closed as of Sunday until further notice. In the meantime, 3-way budget negotiations have been underway since late Saturday afternoon. The Comptroller and Governor agreed that the Governor’s revenue estimates are $4-$7 billion higher than what is now projected due to the economic fluctuations due to COVID-19.
There is a sense of urgency in the state Capitol to negotiate and pass a state budget and then not return to the State Capitol for several months.
Update on Federal Coronavirus Response
Last night, the House of Representatives passed H. Res 904, technical amendments to H.R. 6201, the Families First Coronavirus Response Act, which was passed over the past weekend. This bill is a Medicaid fiscal lifeline for the state of between $5 and $7 billion, and hundreds of millions in support for counties. We are now waiting on the U.S. Senate to take up the revised bill.
For a deeper dive on the H.R.6201, read our
Additional Stimulus Package
President Trump is proposing an $850 billion fiscal stimulus package comprised mainly of tax cuts and cash assistance to heavily impacted industries such as airlines and tourism related industries.
Senator Schumer is proposing a $750 billion stimulus package of new spending initiatives as opposed to an all tax cuts approach. We expect a combination of both will be part of any final package.