Earlier this week ԹϺ joined nearly 200 companies, unions and organizations in a letter urging Congress to include COBRA funding in the next COVID relief package. COBRA is important for the continuation of job-based health insurance for the Americans that have recently lost their jobs as a result of the pandemic. ԹϺ recognizes the importance of keeping the employer-provided health care system operating and federal subsidies will provide certainty for plans and the recently separated participants. Congress provided similar relief in response to the 2009 recession.
This week, ԹϺ helped lead a coalition effort with the International Franchise Association (IFA) calling on Congress to expand the availability of “second draw” Paycheck Protection Program (PPP) loans for small businesses. A provision in the Senate GOP COVID relief proposal would allow small businesses to apply for a second PPP loan, but with stricter criteria than for the original PPP loans. One of the new requirements for second draw loans is that a business demonstrate a 50 percent loss in revenue. ԹϺ called for lowering the revenue loss threshold, so that additional small businesses qualify.
Clarifies Outstanding Fringe Benefit Questions Regarding Paid Leave
ԹϺ Continues to Press for Construction Industry Priorities
Clarifies Outstanding Fringe Benefit Questions Regarding Paid Leave
Association Officials Warn Further Contraction is Likely unless Federal Government Enacts Prompt, Major Investment in Infrastructure as State and Local Governments Face Deficits
ԹϺ of America has created a special report called We Kept America Building.
On July 28, ԹϺ joined fellow construction employer groups and building trades unions in support of new retirement plans, Composite Plans, which enjoy bipartisan backing in Congress. These groups recognize the importance to preserve lifetime retirement benefits for millions of working men and women and will continue to advocate for pension reform in COVID-19 relief packages. The construction groups and unions take direct aim at opponents of Composite Plans who have failed to provide any legitimate criticism of the composite plan design plan model. An additional Composite Plan resource from June included new analysis that found Composite Plans would have fared better during the coronavirus than traditional multi-employer retirement plans.
One provision that was unfortunately not included in the Senate Republican Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, was the overturning of an Internal Revenue Service (IRS) ruling related to the deductibility of expenses associated with income from Paycheck Protection Program (PPP) loan forgiveness. Despite clear congressional intent to ensure that PPP loan forgiveness be untaxed, earlier this year the IRS ruled that any expenses associated with PPP loan forgiveness were not deductible. In May, ԹϺ led a coalition effort with 152 trade associations, calling for congressional action to overturn this ruling. The Democratically-introduced and supported HEROES Act, which passed the House of Representatives earlier this year, contained a provision to overturn the IRS ruling. ԹϺ will continue to fight for this provision to be included in any legislation responding to COVID-19.
The Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, introduced on July 27 by Senate Republicans, would allow certain small businesses to apply for a second Paycheck Protection Program (PPP) loan. To qualify for a “second draw loan” a business would need to meet more restrictive criteria than those for the original PPP. The business would need to meet applicable SBA size standards, have no greater than 300 employees, and demonstrate a greater than 50 percent reduction in wages. The loan size would be capped at $2 million and could not exceed $10 million when combined with a business’s original PPP loan. Additionally, the HEALS Act would modify the existing PPP loan program by allowing loan proceeds to be used for covered supplier costs, covered worker protection and operating expenses (such as cleaning expenses and PPE purchases to meet federal safety guidelines). The legislation would also include a simplified loan forgiveness process for smaller PPP loans under $150,000 and expand eligibility for PPP loans to 501(c)6 organizations.