COVID-19 Washington Update: June 2020 #3

Kelley Drye & Warren LLP
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Below, please find a summary of today’s federal government activities in response to COVID-19.

Congress

During today’s Senate Small Business Committee hearing on CARES Act small business lending programs, Ranking Member Cardin (D-MD) highlighted his plans to introduce the Prioritized Paycheck Protection Program (P4) Act to provide additional PPP funding to smaller businesses particularly hard hit by the pandemic.

Also during the hearing, in response to a question from Chairman Rubio (R-FL), Treasury Secretary Mnuchin confirmed that borrowers using less than 60 percent of their PPP loan proceeds for payroll costs during the forgiveness covered period would continue to be eligible for partial loan forgiveness. Chairman Rubio had previously expressed concern about how the recently-enacted PPP Flexibility Act was written and implications for loan forgiveness.

Senators on both sides of the aisle pressed SBA Administrator Carranza on the agency’s implementation of the Economic Injury Disaster Loan (EIDL) program. Administrator Carranza said all EIDL applications in the queue will be in SBA’s loan processing portal (though not processed) by next week.

Looking ahead to the next relief package, Secretary Mnuchin said the focus should be on getting people back to work. He specifically mentioned funding to encourage businesses to rehire, changes to Unemployment Insurance, funding for states, and – potentially – more direct payments to further stimulate the economy.

Separately, Senator Cornyn (R-TX) today said Senate Republicans continue work on legislation to shield businesses and other entities from COVID-related liability so long as they are following in good faith the guidelines of a government entity of their choosing – federal, state, or local.

Also today, in a statement responding to CBO’s GDP predictions, Speaker Pelosi reiterated that “the most expensive course of action is no action” and urged Senate passage of the Heroes Act.

Recent Congressional Statements / Letters

Other Stakeholder Statements / Letters

Agency Activity

Department of Labor

Department of Health and Human Services

Food and Drug Administration

Centers for Medicare and Medicaid Services

National Institutes of Health

Federal Emergency Management Agency

Department of Defense

Department of Education

Department of Agriculture

Environmental Protection Agency

Federal Communications Commission

Securities and Exchange Commission

Commodity Futures Trading Commission

Federal Reserve

Federal Reserve issues FOMC statement, June 10, 2020

Federal Reserve Board and Federal Open Market Committee release economic projections from the June 9-10 FOMC meeting, June 10, 2020

For Lenders: Updates to the Main Street Lending Program, Friday, June 12 at 2 p.m. EDT
Register here

For Borrowers: Updates to the Main Street Lending Program, Monday, June 15 at 2 p.m. EDT
Register here

State / Local Activity

Given the plethora of state and local actions, we recommend MultiState’s COVID-19 Policy Tracker as a comprehensive tool to monitor the response

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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