VBSR Weekly Public Policy Update

Submitted by tim on Mon, 03/30/2020 - 05:42

Monday, March 30, 2020, Vermont Businesses for Social Responsibility
VBSR Weekly Public Policy Update

VBSR Last week was a big one for state and federal action on the COVID-19 pandemic. In the wake of Governor Scott's "Stay Home, Stay Safe" order, legislators passed a package of bills to help bolster our state's healthcare system while expanding access to unemployment benefits for vulnerable Vermonters. Meanwhile in Washington, House and Senate legislators advanced their third COVID-19 response package that promises to bring nearly $2 billion to Vermont's recovery efforts.

In the face of this growing crisis, VBSR remains committed to providing businesses with the tools they need to endure, giving up to date coverage and analysis of the latest coronavirus relief bills, and continuing to serve as a voice for Vermont's socially responsible business community.

For best practices and resources for businesses responding to this pandemic, check out VBSR's COVID-19 resource checklist. If you have any questions, concerns, or feedback on how our government can best respond to the coronavirus please contact [email protected].

Governor Scott Issues "Stay Home, Stay Safe" Order. What does this mean for Vermont Businesses?

In response to growing concerns over the rapid spread of the coronavirus in the Green Mountain State, Governor Scott issued a "Stay Home, Stay Safe" order that went into effect Wednesday evening. The order directs all non-essential businesses to cease any in-person business until April 15. This has naturally raised a lot of questions and concerns from our members.

Can my business still operate?

That depends on your line of work. The order exempts a limited number of business providing services deemed critical to maintaining public healthy and safety; such as health care providers; essential retailers, like grocery stores, hardware stores, and pharmacies; fuel dealers and suppliers; media outlets; transportation; and key manufacturing sectors. For those who don't fall into this category, it's important to remember that the order only prohibits in-person operations. For those who are able to work remotely, you can and should do so. For our retailers, you can still offer sales through phone, online, delivery, and curbside pick-up and delivery.

I feel that my business is an essential one. Can I appeal my classification?

Yes you can. If you feel that your business has been misclassified or if you fall into a grey area, ACCD has created a process to seek additional guidance and for an appeal via their online inquiry form. The Agency has committed to replying within 24 hours but we encourage businesses to be patient in receiving feedback as their workload continues to grow. ACCD has also put together an FAQ as well as industry specific guidance to provide additional clarity.

I run an essential business, how can I ensure the health and safety of my employees and customers?

Essential businesses must stick to CDC and Vermont Department of Health guidance to ensure they maintain social distancing and a clean place of work during the pandemic and retailers should also make every effort to facilitate curbside pick-up or delivery.

Governor Scott's "Stay Home, Stay Safe Order" has changed the way we all do business but taken a necessary step forward in combating the coronavirus. If you have additional questions about the order or need guidance on how best to carry out your operations, please don't hesitate to contact VBSR or check out our online toolkit here.

Congress Passes $2.1 Trillion COVID-19 Relief Bill

After several days of tense negotiations between congressional leaders and the Administration, Congress officially passed S. 3548, The Coronavirus Aid, Relief, and Economic Security (CARES) Act. This unprecedented, $2 trillion bill is nearly 900 pages long and promises to help Vermont’s struggling businesses and overwhelmed healthcare systems recover from this growing crisis. The bill includes a major expansion in unemployment benefits, direct payments to individuals up to $1200, and billions in state government and small business assistance funds.

Detailed below are some of the key highlights of the bill and how they can benefit your businesses and employees as we navigate these uncertain times together.

Expanded unemployment insurance (UI) for workers, including a $600 per week increase in benefits for up to four months. The bill also extends those benefits to workers who are not normally eligible for UI, including the self-employed and independent contractors. Additionally, the federal government will fund an added 13 weeks of UI benefits through December 31, 2020 once workers have run out of state unemployment benefits.
$562 million for SBA economic injury disaster loans (EIDLs). Generally, EIDLs provide up to $2 million to cover a businesses operating costs and have a 3.75% interest rate for small businesses and a 2.75% rate for nonprofits.
$10 billion in Emergency Economic Injury Grants. These grants will provide small businesses and nonprofits applying for SBA’s EIDL program with an advance of $10,000. The money will be provided within three days of applying for the loan, and businesses will not be have to repay said grant, even if they are denied for an EIDL.
$350 billion for the Paycheck Protection Program. Administered by the Small Business Association and US Department of Treasury, these loans are meant to help small businesses with fewer than 500 employees with payroll support, employee salaries, mortgage payments, rent, utilities, and any other debt obligations incurred between February 15 and June 30. Loans are available up to $10 million per business and may be forgiven, provided employers keep their workers on at their current salary levels through the end of June.
$17 billion to help businesses with existing SBA loans. The SBA will pay all principal, interest, and fees on all current SBA loans for six months, including 7(a), Community Advantage, 504, and Microloan programs. This does not apply to the new Paycheck Protection Program loans outlined above.
Exclusion for employer payment of student loans. Similar to legislation VBSR has long been pushing in the Vermont Statehouse, the Act incentivizes businesses to help their workers pay off their student debt by excluding up to $5,250 in student loan repayment made by an employer from income.
Employee Retention Credits. Refundable payroll tax credits for 50% of wages paid by employers during the COVID-19 crisis to offset the first $10,000 of compensation, including health benefits, paid to an employee. For employers with more than 100 full-time employees, qualified wages are wages paid to employees when they are not providing COVID-19-related services. For employers with 100 or fewer full-time employees, all employee wages qualify for the credit.

What does this mean for Vermont?

Thanks to the strong advocacy from Senator Leahy, Senator Sanders, and Congressman Welch, the CARES Act will bring nearly $2 billion to support the Green Mountain State and its counties in tackling the economic and public health impacts of COVID-19. All told Vermont receive roughly:

$5.4 million to support public health preparedness and response activities through the Centers for Disease Control;
$4.7 million in Community Development Block Grant (CDBG) funding to support the expansion of community health facilities, child care centers, food banks, and senior services;
$5 million in Community Service Block Grants to address the consequences of increasing unemployed and economic disruption;
$4.3 million in Child Care Development Block Grants to support child care assistance to health care sector employees, emergency responders, sanitation workers and other works deemed essential during the corona virus response;
$4.6 million for housing assistance grants through the Department of Housing and Urban Development;
$4.1 million in the Low Income Home Energy Assistance Program (LIHEAP);
$20 million to support public transportation emergency relief;
$9.6 million to support the state’s airports;
$3 million in election assistance grants;
$2 million to support state and local law enforcement and corrections through the Byrne-Justice Assistance Grant (JAG) program;
$826,000 through the National Endowment for the Arts and the National Endowment for the Humanities to support museums, libraries and other organizations that have been forced to shut their doors due to the virus;
$175,000 to support small- and medium-sized manufacturers recover from the economic impacts of COVID-19 through the Manufacturing Extension Partnership program; and
$862,000 in Emergency Preparedness Grants through the Federal Emergency Management Administration (FEMA).

At a time when businesses are struggling and our communities reeling, the CARES Act offers us a ray of hope and valued lifeline to pull Vermont out of the economic maelstrom that is the COVID-19 pandemic. VBSR will continue to update you as we analyze this massive bill further.

Statehouse Expands Unemployment Benefits with COVID-19 Response Package

While Vermont’s businesses grapple with the growing impacts of the coronavirus, working Vermonters are being laid off at historic rates and Unemployment Insurance (UI) claims are skyrocketing as a result. Vermont Department of Labor (DOL) usually processes 400 employment claims in a given week. 14,667 Vermonters filed for unemployment last week alone, many using DOL's new online UI application form. Many more are expected to follow as the pandemic grows.

Thankfully, legislators in the statehouse are taking action to ensure that unemployment benefits are not only accessible to those impacted by the pandemic but that employers are protected from increases in UI tax rates for COVID-19 related layoffs and resignations.

As a refresher, unemployment Insurance is funded via an employer payroll tax and the rate of said tax is based on how many layoffs they have. The more layoffs a business incurs the higher the tax rate and vice versa. This is also known as an experience rate. For an employee to qualify for UI they have to have worked there for at least two of the last five quarters and meet the state’s minimum earnings threshold. In order to collect said benefit, they must be searching for new work or be informed by their employer that they will return to work within 10 weeks. They can then receive 50% of their income up to $513 per week.H. 742, part of the Vermont Legislature’s COVID-19 Response Package, would change that paradigm.

The bill includes additional eligibility for UI benefits for those who quit their jobs if they:

Need to self-isolate or quarantine because they’ve been diagnosed with, show symptoms of, or been exposed to the COVID-19 virus. Individuals who are at higher risk if exposed or infected, such as the elderly, immunocompromised, those with pre-existing conditions, are also eligible.
Are at an unreasonable risk of exposure and infection at their place of work.
Need to care for a family member who has also quit their jobs due to an unreasonable risk of exposure or is presently in self-isolation or quarantine.
Need to watch their children during school closures or if their childcare provider is unavailable due to the coronavirus.

To ensure that employers don’t bear the brunt of these changes the legislation would also ensure that virus-related layoffs don’t harm employer experience ratings. To qualify, they must rehire laid off employees within a reasonable period of time after they fully resume business or once the employee’s quarantine is completed.

Between the expanded eligibility from H. 742 and an added $600 in benefits from the CARES Act, working Vermonters facing layoffs will have more access to and receive stronger assistance from unemployment insurance at no direct cost to Vermont's businesses.

VBSR Offers Webinar Series on Coronavirus Response

Transitioning your Business to a Remote Workplace
Monday, March 30th, 1:00 pm – 2:00 pm
Click here to register.

Mastering Virtual Meetings, Webinars, and Remote Workshops
Thursday, April 2nd, 1:00 pm – 2:00 pm
Click here to register.

VBSR & Common Good VT Webinar: COVID-19 Policy Resources for Nonprofits
Tuesday, April 7th, 1:00 pm – 2:00 pm
Click here to register.

Dealing with COVID-19 Anxiety and Hope: Options for Business Resiliency
Tuesday, April 14th, 1:00 pm – 2:00 pm
Click here to register.

Missed last week's webinar(s)? Recorded copies of past VBSR COVID-19 are available below:

Coronavirus Response Toolkit for Workplaces and Families – watch here.
Discussion on the Federal Response to COVID-19 with Congressman Peter Welch – watch here.
How to Support your Employees with Child Care Needs during COVID-19 – watch here.
Coronavirus (COVID-19) – Keeping your business and community safe (partial recording) – watch here.

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