Terre Haute Chamber of Commerce Advocacy Forum – Virtual Wrap-Up April 2020
Note: Due to concerns related to the COVID-19 epidemic, the Chamber has cancelled all in-person events, including our scheduled advocacy forum. In lieu of the event, we have worked with our Advocacy Partner, RJL Solutions to the following:
Thank you to our federal legislators for taking the time to discuss the impacts of COVID-19 on
the business community. As information changes on a daily basis, we appreciate Congressman
Bucshon and Senator Braun for taking the time to provide guidance and resources for
businesses during these uncertain times. When looking into the future, both Congressman
Bucshon and Senator Braun offered their thoughts on the future of our economy and the future
of the business community. Although Senator Todd Young was unable to answer the questions
in this format, we thank him for participating in a virtual call with Chamber members where he
discussed key programs and resources that are working to benefit the business community.
Federal Legislatures Question & Answer
Q. Economically speaking, the business community is
navigating new waters during this pandemic. In fact, for
many businesses, this is the first time they’re
experiencing any economic downturn at all. What is your
best advice as the federal government works to provide
resources to help businesses stay afloat and bridge the
gap between now and the hopeful, positive economic return?
A. Congressman Larry Bucshon: Congress knows Main Street needs relief, and that is why we
worked to quickly pass legislation aimed to provide just that. My advice is to look into
participating in the numerous programs offered by the federal government at this time. For
example, the Families First Coronavirus Act (FFCRA) extended eligibility to participate in the
Small Business Administration’s Emergency Economic Injury Disaster Loan (EIDL) program to provide small businesses, 501(c)(3) non-profits, and 501(c)(19) veterans’ organizations with low- interest loans of up to $2 million to help cover fixed debts, payroll, employee sick leave, rent or mortgage payments, and other bills incurred during, and due, to the Coronavirus pandemic. The
CARES Act further expanded eligibility to participate and made it so that EIDL applicants are
eligible to receive a $10,000 advance on their loan in the form of a grant for immediate financial
relief. The CARES Act created the Paycheck Protection Program which has helped over 1 million
businesses during this health care crisis that is no fault of their own. This program was so
popular and helpful that it ran out of money in less than two weeks. Congress needs to provide
additional funding for this program in order to help more businesses bridge the economic
downturn—and I am optimistic more funding will be available. Additionally, in order for
businesses to be ready when the stay at home order is lifted, they should have a plan in place
that considers social distancing and other measures that will allow them to operate within the
guidelines. Additionally, the CARES Act included substantial tax relief for small businesses. It
allowed them to defer their share of the social security payroll tax payments that would
normally be due between March 27, 2020 and December 31, 2020. The CARES Act also allows
businesses to deduct 100% of their net operating losses for the years 2018, 2019, and 2020,
rather than the usual 80%, and allows these losses to be carried back five years. Finally, the
CARES Act created the Employee Retention Tax Credit, which is a refundable tax credit, for
businesses and non-profits of all size, against certain employment taxes equal to 50 percent of
the qualified wages an eligible employer pays to employees after March 12, 2020, and before
January 1, 2021.
A. Senator Mike Braun: The most important thing is
making sure we don’t backslide and ensure we keep the
disease at bay. When we put together the resources in
somewhat of a hurriedly fashion, it was because there was
urgency as it was unfolding in front of us. The key is
making sure that we still pay attention to the rules but
also, we, as leaders, work towards restarting our economy
in a smart way. This will likely be tougher than what we’ve
had to do up to this point as it will require everything we
have learned about the disease and how to incorporate
those principles into a new start. I know the Governor has
done a lot of soul-searching in terms of what to do. I think in Indiana, we have kept the disease
at bay, even in a state where we have a big metropolitan area with Indy and much of the rest of
the state being rural in nature. Every county is different, and we have done a good job so far. I
think the tougher part will be how to keep doing all of these things and restart the economy in a
smart way.
Q. If you were to choose the best three resources currently provided by the federal
government to help businesses, what would they be and why?
A. Congressman Larry Bucshon: Businesses come in all shapes and sizes, so there are a number
of choices. I think the best thing for a business to do is to have a conversation with your financial
institution and work with them to figure out what program makes the most sense for your
needs. It’s important that businesses do this, as applying or receiving aid in one program could
disqualify you from another program that might better fit your needs.
A. Senator Mike Braun: We did several things prior to leaving on March 26th and have not been
in D.C. together since then. The day to go back was ironically today and that has been pushed
back until May 4th. There are several tools currently available. The paid sick leave and paid
family leave that could be paid for through employer tax credits on the payroll accounts was
completed a week or two before we put together the phase three package. Many people have
forgotten about this, but the tool is still there.
We have done a few things within the phase three package that you have noticed recently.
Some individuals have had checks show up, especially if you had them electronically put into
your account. This includes $1,200 per individual and $500 for each child. Funds that are coming
by mail will be received soon. The enhanced unemployment insurance is effective through July 1. If you’ve been laid off through no fault of your own, this is designed to be more than just an unemployment check, but an income replacement. Also,
because we have run through the funds, which explains
how deeply and broadly small businesses have been
impacted, Paycheck Protection Program was created. We
are working on getting this plussed up as we speak. All of
these are tools that everyone should take advantage of. If
you run into any difficulty with them, make sure you get
ahold of my staff. I have a great team who can answer any
questions that you have. These are all things that we have
done, but I feel certain that from this point forward, we
need to rely on a smart restart of the economy. It will be a
new paradigm – a new normal. Until we get a vaccine and therapies that are proven, we will
have to try and do several things at once. This is critical from here moving forward.
Q. Looking in your crystal ball, when do you see our nation’s economy turning the corner?
What hope, or not, can you provide the business community?
A. Congressman Larry Bucshon: In these uncertain times, I think it is important to listen to the
advice of our health care experts. We can only solve the economic crisis by first solving the
health care crisis. One fact that is clear from listening to our health care officials is that as social
distancing measures continue to be taken seriously and the number of new cases and deaths
show a trend downward for a sustainable amount of time, we can be optimistic that we have
turned a corner. Each state is going to be on their own timeline, and there will not be a blanket
one-size-fits-all solution. I am happy to see Governors of the Midwest come together to begin
planning on how to reopen the economy in the region in a safe and productive manner.
A. Senator Mike Braun: I have great hope for the economy, and I think as long as it’s not
dormant for too long, we will have a good, vital bounce-back. I think all businesses have already
found ways to make sure their employees are safe. Those that are deemed essential businesses
have had to do both. About a week or so ago, non-essential businesses were allowed to do
curbside. This was good. We will find that there is great entrepreneurialism out there. Here in
Indiana, we have done it right. However, as we get back to restarting the economy, we cannot
lose sight of the things we have been doing to keep the disease at bay. Hang In there. You will
know what to do for your own businesses. Use the ingenuity that got yourselves in business in
the first place. Pay attention to the rules. I think we will have a happy outcome from a dismal
situation.
Q. What is your biggest concern for the future? What do
you see as the biggest opportunity for the future? How
do both of these answers relate specifically to business?
A. Congressman Larry Bucshon: My top priority is to
ensure the safety and wellbeing of all Hoosiers. My biggest
immediate concern is making sure businesses are prepared
to operate within new guidelines that will likely be in
place. Reopening the economy means living in a new
normal which means businesses must be thinking about
what that may look like. The biggest opportunities for businesses I see are the technology
advances and work-from-home capabilities that are coming to form in response to this crisis and
will most likely be required to be used in the new normal.
A. Senator Mike Braun: Places like New York and New Jersey where horrific things have
happened won’t be the same in places like Indiana. We have done about as good of a job as you
can to avoid the worse of what can happen. The biggest challenge will be that every state is
different in this country. In the state, every county is different. You are going to see some places
opening up and some open up rather quickly. We have to make sure these places do not
backslide even though they have been spared most of the difficulties so far. I foresee that this is
going to be the biggest challenge. However, the biggest opportunity is that we are going to
come out of this learning from it. We are going to be better prepared if this happens again or
the next similar disease comes along. We will have things like telemedicine. You may have found
new businesses and new things that you can do with your capabilities and some of the new
ways we will need to be prepared for if this happens again. Supply chains might look different.
What was working before might present new opportunities for improvement. I believe this will
happen on a local, state, national and global basis. Whenever you go through something this
big, generally you will find new ways of doing things. We can sharpen the way your businesses
work, and we can find a little good out of what has been a very challenging situation.
A special thank you to the Chamber’s Advocacy Partner, RJL Solutions for this contribution.
