DELHI - U.S. Congressman Antonio Delgado, representing New York’s 19th Congressional District which includes Delaware County, held a business-centric virtual town hall via video conference hosted by the Delaware County Chamber of Commerce on Wednesday, May 13.
Delgado highlighted CARES Act 2.0 - dubbed the HEROES Act (Health and Economic Recovery Omnibus Emergency Solutions Act) - proposed legislation amounting to $3 trillion to offset economic injury as a result of COVID-19, a healthcare pandemic which has caused a national economic slow-down. The House-originated Bill bolsters previously enacted legislation which includes additional funding for the Payroll Protection Program and Economic Injury Disaster Loans.
CARES 2.0 includes $875 billion to be set aside for help to fill the gap for lost government revenue and state and local levels.
Of that amount, Delgado said, $500 billion has been set aside for states and $375 billion has been set aside for local municipalities which include counties, cities, towns, and villages. Funding will be made available to municipalities of any size upon passage of the bill as written.
Under the bill, counties would receive money directly from the U.S. Treasury, while towns, cities and villages would receive funding from the state.
Schools will also benefit from the bill, with $100 million earmarked for education.
New York, which is facing a $14 billion budget gap, due in part to the pandemic, would receive $22 billion in first-year funding - $9 billion more than the state’s projected shortfall.
The omnibus bill, voted on by Congressional Representatives on May 15, passed by a vote of 208-199.
Second round funding for Payroll Protection and Economic Injury Disaster Loans is included in the bill and will enable not-for-profits - which were previously excluded - to apply for grant-conversion loans under the programs.
There is also a second round of stimulus funding of $1,200 for an individual or $2,400 for married couples, with income guidelines and an additional allotment for dependent children, included in the the bill.
Initial CARES Act funding was awarded at the rate of $2 billion per day, Delgado said. Its currently being awarded at the rate of $2 billion per day. The way in which funds were previously administered, Delgado said, “Was sloppy beyond belief.”
Delgado clarified that any U.S. Small Business Administration (SBA) loans which are awarded under the first or second round of funding have an automatic 6-month payment, interest and fee deferral. Businesses which were awarded SBA loans previous to the pandemic outside of CARES Act time frame, should contact loan administrators and local SBA offices to determine if those loans are eligible for deferral.
Payroll Protection Program guidelines have also been altered in CARES Act 2.0 to eliminate the 75/25 wage-specific requirement by allowing previously awarded funds to be used for business expenses or payroll.
Any extra expenses that businesses are incurring for safe operating and/or reopening can be included in the loans which have a forgiveness component via loan conversion as long as certain criteria is met.
For voluntary testing Delgado urged town hall attendees to seek out state resource pages which detail location-specific testing sites.
Delagdo said testing remains limited noting the current benchmark for testing is coming into contact with someone who has been infected.
The pandemic has revealed that government needs to be more of a solid foundation for communities to rely upon, Delgado said. The government should be investing in broadband and workforce development - investments that would pay for themselves over time, Delgado said. If broadband service is unavailable, students are unable to home school, businesses can not function online and telemedicine is unavailable. “There has to be a meaningful stop gap,” Delgado said.
Deficits should not be paid by raiding Medicaid and Medicare programs which ensure the health and well-being of those who are dealing with vulnerabilities, Delgado said in response to a question about pandemic-driven deficit repayment.
There remains uncertainty in airline travel, Delgado said in response to a question about federal oversight in reopening the industry with consistency or uniformity. “It’s state-based,” Delgado said, “Left in the hands of states and governors.” He cautioned travelers by saying “We’re not out of the woods yet,” urging people to take precautions for safety.
Delgado urged business owners, both those considering opening a business and veteran business owners, to “move slowly and deliberately” in their decision making, examining and prioritizing online capacity in the wake the pandemic.
In navigating uncertainties, Delgado acknowledged that it is a tough climate to function in. “It’s hard, but the spirit of our community is powerful,” he said.
According to Senate Republicans, the HEROES Act will be “dead on arrival.”
The Delaware County Chamber of Commerce has collaborated with the MARK Project and the Delaware County Department of Economic Development to provide Delaware County’s business community with resources and access to programs and certifications that will allow phased opening.
For more information and links to access state and federal business recovery loan and grant programs visit delawarecounty.org.
