Day At The Track

New federal legislation expected to pass

08:59 AM 23 Apr 2020 NZST
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Following is a summary of the new “economic stimulus” federal legislation that was passed by the U.S. Senate on Tuesday (April 21) and is scheduled to be voted on by the U.S. House of Representatives on Thursday (April 23) with the expectation that it will pass and be signed into law by the President the same day. This summary has been provided by the Washington, D.C. and Nashville, TN-based The Ingram Group for the USTA.

But first, is a section of a letter the National Horsemen’s Benevolent and Protective Association sent to Thoroughbred horsemen with important information regarding loan applications for the Paycheck Protection Program through the Small Business Administration stressing the need to act now, which applies to the harness racing industry and horsemen as well.

From the National HBPA

IMPORTANT: Regarding those who have already applied for the PPP loan and not received assistance: We can make you aware that according to staff members from the office of Senator Rubio who is the Chairman of the Small Business Committee team, the criteria for re-applying or not re-applying for the PPP depends on your specific bank and their process. Senator Rubio’s team said it is not the intent for businesses who have already applied to have to reapply and the applications were to be processed on a first-come, first-served basis.

With this information, I urge stakeholders to act quickly and contact lenders if they want to be certain. As you know, many lenders have stopped accepting applications since relief funds have run dry, but applicants can still work to fill out the application and identify possibly a new financial institution that is taking applications, so that they are ready to go when the cash starts flowing again. Act now.

It is also worth noting, especially to 501(c)(6) organizations not qualified for relief under the current PPP, that an additional $60 billion will be provided for Economic Injury Disaster Loans (EIDLs) where (c)(6) organizations do qualify for this loan program.

From The Ingram Group

Tuesday, Senate Republicans and Democrats struck a $484 billion deal aimed at replenishing both SBA and healthcare-related funds. That evening, the Senate passed the agreement that contains the additional relief funding. The bill included $310 billion for the SBA’s Paycheck Protection Program (PPP) (with $60 billion of that dedicated to small lenders and community-based financial institutions), $75 billion in emergency money for hospitals, and $25 billion to increase testing and contact tracing capabilities.

An additional $60 billion will be provided for Economic Injury Disaster Loans (EIDLs). Note that the bill makes no changes to the Coronavirus Relief Fund for state and local governments. Also, note that it is estimated that the additional $310 billion for PPP could run out in only 72 hours.

The bill will now be sent to the House, which will return on Thursday to pass it. The House will also formally approve the task force to oversee COVID-19 funding implementation, which will be led by Majority Whip Clyburn (D-SC). And finally, the House may also address a rule change that would allow the chamber to permit remote committee work and, possibly, remote voting or remote voting through a proxy.

Additionally, various House committees are already working on “Phase 4” legislation with the expectation that the House goals for “Phase 4” will emphasize more state and local funding, additional unemployment assistance, food benefit/nutrition funding, and more. The House is currently scheduled to return on May 4, but it is unclear if that date will change. Either way, the expectation is that “Phase 4” is not likely to move before mid- or late-May.

To read the text of the bill “to increase amounts authorized and appropriated for commitments for the Paycheck Protection Program authorized under section 7(a) of the Small Business Act, economic injury disaster loans and emergency grants under the CARES Act, to fund hospital and provider recovery and testing, and for other purposes,” click here.

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