Related Issues

Related Issues

Coons, colleagues urge Administration to use new authority to allow free telephone calls and video conferencing for incarcerated people

WILMINGTON, Del. — Today, U.S. Senator Chris Coons (D-Del.), along with U.S. Senators Amy Klobuchar (D-Minn.), Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Michael Bennet (D-Colo.), Kamala Harris (D-Calif.), Sherrod Brown (D-Ohio), Ed Markey (D-Mass.), Richard Blumenthal (D-Conn.), Elizabeth Warren (D-Mass.), Tammy Duckworth (D-Ill.), and Ron Wyden (D-Ore.), wrote a letter urging the Administration to use new authority provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to waive phone charges for incarcerated people to help families and loved ones remain in contact during the pandemic. The senators also asked that the Administration ensure that communications with attorneys remain confidential.

The letter follows a previous request from senators on March 20. In-person visits at federal prisons have been suspended during the COVID-19 pandemic, and currently, calls can cost up to 25 cents per minute in addition to fees charged for each call.

“The Senate-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, includes new authority for BOP to promulgate rules that would allow inmates to connect with loved ones through video teleconferencing and by telephone free of charge…we urge DOJ and BOP to take immediate action,” the senators wrote. “The new rule should also make clear that incarcerated people can make telephone calls, use video conferencing services, and send emails to communicate with an attorney in a private and confidential setting without incurring charges.”

The full text of the letter can be found HERE and below:

Dear Attorney General Barr and Director Carvajal:

We write to follow up on our March 20 letter urging the Bureau of Prisons (BOP) to waive fees associated with phone calls for incarcerated people and to allow for unsupervised communications with attorneys for the duration of the federal emergency due to the coronavirus (COVID-19). In light of the new authority provided to the Department of Justice (DOJ) and the continued threat posed by COVID-19, we urge you to take immediate action to implement these policies. 

The Senate-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, includes new authority for BOP to promulgate rules that would allow inmates to connect with loved ones through video teleconferencing and by telephone free of charge if the Attorney General “finds that emergency conditions will materially affect the functioning of the [BOP].” This legislation was enacted following BOP’s implementation of several measures intended to mitigate the spread of COVID-19 at federal prisons, including suspending visits for both social and legal purposes. Incarcerated people, visitors, and those who work as federal correctional staff, as well as their families, are at especially high risk of infection due to the conditions of close confinement. According to the BOP, at least 138 federal inmates and 59 staff members have tested positive for COVID-19.

It is for this reason that we urge DOJ and BOP to take immediate action to issue a rule to allow for video teleconferencing and telephone use that is free of charge to incarcerated people and their families. The new rule should also make clear that incarcerated people can make telephone calls, use video conferencing services, and send emails to communicate with an attorney in a private and confidential setting without incurring charges.

Thank you for your attention to this urgent matter. We look forward to your prompt response.

Sincerely,

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Sen. Chris Coons on primary election in Wisconsin

WILMINGTON, Del. – U.S. Senator Chris Coons (D-Del.), the top Democrat on the Financial Services and General Government Appropriations Subcommittee, which funds and provides oversight of federal elections, released the following statement on Wisconsin’s primary election.

“The events unfolding in Wisconsin demonstrate that we can’t keep ignoring the threat that COVID-19 poses to our elections. Every state needs to expand vote-by-mail, early voting, and online voter registration as soon as possible so that every eligible American can cast a ballot safely this fall. The federal government needs to provide states with the resources and the direction to help make that happen, and I’m determined to include both in the next COVID-19 relief bill. We can’t wait any longer – the time to plan and safeguard Americans’ ability to vote is now.”

 

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Coons, colleagues urge Trump Administration to reserve a portion of Paycheck Protection Program funding for underserved borrowers

WILMINGTON, Del. — Today, U.S. Senator Chris Coons (D-Del.) joined Senate Democratic leaders to send a letter to U.S. Small Business Administration (SBA) Administrator Jovita Carranza and U.S. Secretary of the Treasury Steven Mnuchin urging the Trump administration officials to take steps to ensure that the most vulnerable small businesses have access to the important financial resources authorized by the Coronavirus Aide, Relief, and Economic Security Act (CARES Act). The letter was also signed by Senate Committee on Small Business & Entrepreneurship Ranking Member Ben Cardin (D-Md.), Senate Democratic Leader Chuck Schumer (D-N.Y.), committee member and member of the Senate Small Business Task Force Senator Jeanne Shaheen (D-N.H.), and Democratic committee members Senators Maria Cantwell (Wash.), Ed Markey (Mass.), Cory Booker (N.J.), Mazie Hirono (Hawaii), Tammy Duckworth (Ill.), and Jacky Rosen (Nev.).

The senators pushed the administration to reserve a portion of the $349 billion appropriated to the Paycheck Protection Program (PPP)—a provision included in the CARES Act to provide small businesses and other entities with forgivable, low-interest, zero-fee, and fully guaranteed loans of up to $10 million—for small businesses that do not have relationships with the traditional lenders, especially those in underserved and rural markets, including businesses owned by veterans, minorities, women and businesses that have been in operation for less than 2 years.

The senators wrote: “We recommend that a portion of available PPP funding be reserved for those borrowers who do not have relationships with the traditional lenders that will dominate delivery of PPP Loans…Without proactive and sustained outreach, we can expect that underserved communities will be disproportionately harmed – just as they were during the Great Recession when minority business enterprises suffered a precipitous decline in the proportion of SBA-backed loan approvals.”

According to press reports, last Friday, the first day small business owners could apply for PPP loans, large traditional banks are prioritizing existing clients that have a loan, checking account or credit card with the institution.

Financial institutions that issue PPP loans earn a processing fee of 5 percent for loans $350,000 or less, 3 percent for loans between $350,000 and $2 million, and 1 percent for loans above $2 million. Democrats fought to include the fee structure in the CARES Act to ensure that small businesses in underserved communities, including women, minorities and veterans, as well as rural markets, are prioritized in the processing and disbursement of PPP loans.

The senators also urged the administration to authorize more lenders that have demonstrated stronger ties with underserved borrowers, writing, “We believe that more can be done to reach out to and authorize those lenders, such as Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and mission-based non-profit lenders, which are best positioned to bridge the trust gap between many underserved communities and the traditional financial sector.”

The letter is available here. Full text provided below.

Dear Secretary Mnuchin and Administrator Carranza:

We write regarding implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), particularly as it pertains to helping underserved communities access important financial resources authorized by the law.  

As you know, the CARES Act included $377 billion to provide relief to support small business owners, who are desperate for help during this unprecedented public health and economic crisis. The majority of this funding was provided to support the Paycheck Protection Program (PPP), which provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. The program allows forgiveness of up to 8 weeks of payroll costs based on employee retention and salary levels, no SBA fees, and six months of complete payment deferral.

It is critical that underserved borrowers do not fall between the cracks in the implementation of this program. That is why Congress insisted on a tiered processing fee structure that incentivizes banks to make loans of $350,000 or less and inserted language encouraging SBA to release guidance to lenders to ensure that the processing and disbursement of PPP loans prioritizes small business concerns and entities in underserved and rural markets.  This includes those owned by veterans and other members of the military community, minorities, women, and businesses in operation for less than 2 years.

We believe that more can be done to reach out to and authorize those lenders, such as Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and mission-based non-profit lenders, which are best positioned to bridge the trust gap between many underserved communities and the traditional financial sector. For example, a survey conducted by the Association for Enterprise Opportunity (AEO) found that more than half (51%) of Black respondents indicated they felt unfairly treated by financial institutions, compared to only 26% of white respondents.

We recommend that a portion of available PPP funding be reserved for those borrowers who do not have relationships with the traditional lenders that will dominate delivery of PPP Loans. In the first days of the program, it is already clear that many banks are serving existing clients first, with some even prioritizing only those existing clients who have already taken on debt with that financial institution. This leaves underserved communities with no or severely limited access to these vital funds. Without proactive and sustained outreach, we can expect that underserved communities will be disproportionately harmed – just as they were during the Great Recession when minority business enterprises suffered a precipitous decline in the proportion of SBA-backed loan approvals. We must not repeat this same mistake in implementing the Paycheck Protection Program.

We appreciate your immediate attention to this critical issue and thank you for your continued work to mitigate the impacts that this public health crisis is having on our economy.

Sincerely,

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Sen. Coons leads colleagues in bipartisan effort to deliver COVID-19 protective equipment to first responders

Sen. Coons to President Trump: ‘lead a strong, coordinated federal effort to support our first responders and address this national shortage of PPE’

88 percent of U.S. cities lack an adequate supply of PPE to protect first responders.

WILMINGTON, Del. — Today, U.S. Senator Chris Coons (D-Del.) led his colleagues in a letter to President Trump demanding a strong, coordinated federal effort to support our first responders by addressing the national shortage of personal protective equipment (PPE). The shortage of PPE unnecessarily exposes first responders to COVID-19 and will hamper the ability of emergency personnel to serve on the front lines during this public health crisis.

Joining Senator Coons on the letter were members of the Law Enforcement Caucus and the Fire Services Caucus, including Senators Susan Collins (R-Maine), Tom Carper (D-Del.), Lisa Murkowski (R-Alaska), Maggie Hassan (D-N.H.), Gary Peters (D-Mich.), Dick Durbin (D-Ill.), Richard Blumenthal (D-Conn.), Bill Cassidy (R-La.), Jerry Moran (R-Kan.), and Amy Klobuchar (D-Minn.)

“[We] urge you to continue exploring every possible avenue to increase the supply of PPE to put more of this critical equipment into the hands of those who need it most, including first responders,” said the senators. “Specifically, this requires utilizing your authorities under the Defense Production Act to strengthen domestic manufacturing capacity by incentivizing private firms to produce PPE, including respirators, gloves, gowns, and eye protection, and to allocate some of these resources to first responders.

The senators concluded, “Without aggressive federal action, we risk leaving first responders across the country without the tools and equipment they need to keep both themselves and our communities safe during this crisis.

The full letter can be found here and below.

Dear President Trump:

As the government works to protect Americans from COVID-19, we must ensure that we provide first responders with the resources they need to keep our communities safe during this pandemic.  Reports from across the country indicate that first responders do not have the personal protective equipment (PPE) that they need to keep themselves safe as they respond to emergencies during this crisis.  As members of the Law Enforcement Caucus and the Fire Services Caucus, we urge you to lead a strong, coordinated federal effort to support our first responders and address this national shortage of PPE. 

First responders, including firefighters, emergency medical services personnel, and law enforcement officers, answer the call of duty by showing up to work at emergency scenes where they could be exposed to COVID-19.  This work inherently requires close contact with potentially infected and contagious individuals, and it is often first responders who transport these individuals to health care facilities.  The Centers for Disease Control and Prevention recommends that first responders who anticipate coming into contact with persons with confirmed or possible COVID-19 utilize PPE, like respirators, gowns, eye protection, and gloves, in these circumstances.[1] However, the national shortage of PPE has left fire companies and police departments across the country struggling to access this critical equipment.  A United States Conference of Mayors survey recently found that 88.2 percent of cities lack an adequate supply of PPE to protect first responders.[2] 

The dangerous consequences of this equipment shortage are clear.  When first responders are exposed to or become infected with COVID-19, they are often unable to work for at least 14 days.  Across the country, first responders are being taken off of the front lines in large numbers because they lack the necessary PPE and have been exposed to the virus.  Over 17 percent of the New York City Fire Department and 13 percent of the New York City Police Department are already out sick.[3] Ensuring the health, safety, and availability of first responders is vital to our communities – any staffing shortage of emergency personnel impacts all of us.  If our first responders are sidelined, our communities immediately become less safe and less resilient. 

We appreciate that the Coronavirus Aid, Relief, and Economic Security (CARES) Act included $100 million for Assistance to Firefighters Grants to help first responders during this crisis.  However, this money is insufficient to provide first responders with the protection that they require.  To date, first responders have been unable to purchase sufficient supplies of PPE during this pandemic.  Fire, police, and emergency medical services departments are being told by their usual suppliers not to expect resupply for months.  The American Medical Association, American Hospital Association, and American Nurses Association recently stated in a letter to you that even with the infusion of supplies from the Strategic National Stockpile and other federal resources, there will not be enough equipment to respond to the COVID-19 crisis.[4]  If not even hospital personnel are able to receive the PPE that they need, our first responders will be left similarly unprotected as they continue to perform their essential duties.

As members of the Law Enforcement Caucus and Fire Services Caucus, we urge you to continue exploring every possible avenue to increase the supply of PPE to put more of this critical equipment into the hands of those who need it most, including first responders.Specifically, this requires utilizing your authorities under the Defense Production Act to strengthen domestic manufacturing capacity by incentivizing private firms to produce PPE, including respirators, gloves, gowns, and eye protection, and to allocate some of these resources to first responders. 

First responders are among our nation’s most indispensable and dedicated public servants.  The COVID-19 pandemic will not prevent firefighters, emergency medical services personnel, or police officers from performing their public safety duties. While first responders will not stop in their mission to protect us, we must uphold our end of the bargain to protect them and their families.  Without aggressive federal action, we risk leaving first responders across the country without the tools and equipment they need to keep both themselves and our communities safe during this crisis. 

Sincerely,

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[1] Interim Guidance for Emergency Medical Services (EMS) Systems and 911 Public Safety Answering Points (PSAPs) for COVID-19 in the United States, Centers for Disease Control and Prevention (updated March 10, 2020),

https://www.cdc.gov/coronavirus/2019-ncov/hcp/guidance-for-ems.html.

[2] Shortages of COVID-19 Emergency Equipment in U.S. Cities A Survey of the Nation’s Mayors, The United States Conference of Mayors (March 27, 2020), https://www.usmayors.org/issues/covid-19/equipment-survey/.

[3] Coronavirus Updates: FDNY, NYPD Feeling the Impact of Coronavirus on Two Fronts, ABC7NY (March 27, 2020),https://abc7ny.com/fdny-nypd-coronavirus-covid-19/6056041/NYPD COVID-19 Cases Expected to Hit 900 Monday, Pix 11 (March 30, 2020),https://www.pix11.com/news/coronavirus/nypd-covid-19-cases-expected-to-hit-900-monday.

[4] Richard J. Pollack, James L. Madara, and Loressa Cole, AHA, AMA and ANA Letter to the President to Use DPA for Medical Supplies and Equipment (March 21, 2020), https://www.aha.org/lettercomment/2020-03-21-aha-ama-and-ana-letter-president-use-dpa-medical-supplies-and-equipment.

[VIDEO] Sen. Coons: ‘Clear, coordinated federal strategy’ needed to help states, communities respond to COVID-19 crisis

Sen. Coons: ‘It’s time for us to have a clear, coordinated federal strategy.’

Sen. Coons: ‘Trying to avoid responsibility is not a way to lead our nation.’ 

WILMINGTON, Del. — U.S. Senator Chris Coons (D-Del.) joined MSNBC to discuss the federal strategy to deliver personal protective equipment, ventilators and other critical resources nationwide. 

“[One] of my grave concerns here is a lack of a coordinated national strategy around how to make sure that states and cities that are in crisis or that are coming into crisis have access to the personal protective equipment, the medical machinery, the test resources that they need,” said Senator Coons. “This is a virus that is traveling around the world, that is traveling across state borders, and, frankly, I think it requires a federal standard and a federal response that is rooted in science and that is led by public health professionals; not based on whims or allegiances or partisan politics.”

Full audio and video available here. A full transcript is provided below.

Q: Good to see you, Senator. The President, I’m sure you saw, backed up by his son-in-law, is doubling down on this idea, and I’m quoting him here, “We’re not an ordering clerk.” You’ve been on both sides of government. You’ve been on the local level as a county official. Obviously now in the U.S. Senate. What do you make of those comments?

Sen. Coons: Chris, one of my grave concerns here is a lack of a coordinated national strategy around how to make sure that states and cities that are in crisis or that are coming into crisis have access to the personal protective equipment, the medical machinery, the test resources that they need. And trying to avoid responsibility is not a way to lead our nation. Frankly, the Congress came together in a strong and bipartisan way. The President signed an important bill – that was a $2.2 trillion stimulus bill. That’s because cities and counties and states all over our country look to the federal government for resources and leadership. When there’s a natural disaster or a tornado or earthquake, we look to our governors and our state emergency management personnel to be the sort of front line and the first deciders. But this is a global pandemic, Chris. And this is something where the response requires federal coordination and leadership of what is a global supply chain. We don’t have enough manufacturing in the United States today of the critically needed materiel and we should be having a federally-coordinated resource, and I frankly think to say “we’re not an ordering clerk” misses the gravity of the moment and misses the significance of federal leadership. I joined with a bipartisan group of Senators last week in a letter in urging the President to take on federal leadership in organizing and coordinating our response.

Q: So, I want to make sure I understand what you say when you’re talking about federal coordination. Are you talking about one set of rules? We have 10 or 11 states that are not ordering shelter in place right now. In your state, I think it happened 10, 12 days ago. Now, each state does have unique circumstances. Their levels of concern and their level of cases are different. But is it time for the federal government to say, everyone shelters in place, everyone wears a mask? Does there need to be unanimity given the kind of travel that people do in this country?

Sen. Coons: Chris, I think there has to be coordination. What you heard from Governor Cuomo about planning and coordinating the development and the deployment of critically-needed materiel like ventilators and how there could be a shifting response across the country as conditions change on the ground is a great example of how we really could have a better federally-organized and coordinated response. I recognize the critical role that governors play in our federal system in making their own decisions about disaster response locally. But as you just said, this is a virus that is traveling around the world, that is traveling across state borders, and, frankly, I think it requires a federal standard and a federal response that is rooted in science and that is led by public health professionals, not based on whims or allegiances or partisan politics. And I do think it’s time for us to have a clear, coordinated federal strategy.

Q: You were one of the negotiators of the $2 trillion package that came out of Congress as a member of the Small Business Committee. I’m sure you know well the details of the nearly $350 billion SBA loan program that starts today. From what you know and from what you’re hearing, how ready are we, how ready is the government and banks for the onslaught of applications?

Sen. Coons: I’m optimistic, Chris, that the SBA and its lenders and their staff and partners around the country are as ready as they can be. We are asking them to push out the door $350 billion in loans and grants to small businesses and nonprofits. This is several times more money than the SBA has ever tried to put out on the street in loans and grants. I hope folks will be patient with them. But in the past week, I’ve been doing calls with other senators, with the head of the SBA, the deputy secretary of Treasury, the head of BARDA, and the head of the FCC to get insight and to offer encouragement around the quick disbursement of individual checks by the IRS, the quick availability of funding for small businesses and nonprofits, decisive action to backstop our national economy, and urgent action by the Department of Labor to make sure that the unemployment federal add on, the additional federal resources for unemployment insurance that we provided for in the bill, is made available.

Chris, I’m hearing from Delawareans every day up and down our state who are concerned either because they’re first responders or public health workers that are concerned about whether or not they will have adequate supplies, and I’m hearing from folks who just lost their jobs or whose companies have had to close. I respect the leadership of our Governor John Carney who has had to make a tough decision to close restaurants and schools. But we frankly owe it to the American people that when Congress and our President come together to quickly enact such a big federal stimulus that we are also ensuring that it is being pushed out the door as quickly and as responsibly as possible. I’m optimistic about how the IRS and SBA will be getting out individual checks and support for small businesses and nonprofits in the coming week.

Q: Senator Chris Coons, thank you so much. You take good care. Our best to you and your family.

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Carper, Coons, Blunt Rochester announce $66 Million CARES Act grant to Delaware Transit Corporation

WILMINGTON, Del. – Today, U.S. Senators Tom Carper and Chris Coons and Congresswoman Lisa Blunt Rochester (all D-Del.) announced a $66,580,605 Coronavirus Aid, Relief, and Economic Security (CARES) Act grant award to Delaware Transit Corporation (DTC) to help to prevent, prepare for and respond to the COVID-19 pandemic.

Funding will be provided at a 100 percent federal share, with no local match required, and will be available to support operating, capital and other expenses, paying for administrative leave for transit personnel due to reduced operations during the emergency. DTC will use this funding to continue to provide a critical service without employee layoffs, offset fare box losses, and to continue its intensified cleaning efforts.

“As we were drafting this relief package, we tried to look at all parts of our community and economy that are affected, and that includes our transportation and transit systems,” said Senator Carper, top Democrat on the Environment and Public Works committee. “This funding will help the Delaware Transit Corporation with crucial funding to continue their vital services to Delawareans and our economy.”

“I am pleased that the state of Delaware will receive over $66 million to support transportation service as transit providers face record losses of ridership and revenue and decreased service. The funding will help cover operating costs and administrative leave for employees, as well as purchases like personal protective equipment and cleaning supplies,” said Senator Coons. “Ensuring that safe and reliable public transportation is available during and after the COVID-19 pandemic is critical for our communities.”

“Helping the state maintain critical public services, such as public transportation, was a top priority of the Delegation as we drafted the latest relief package,” said Rep. Blunt Rochester. “I’m pleased that this funding will help the Delaware Transit Corporation do just that, ensuring that Delawareans continue to receive the services they need during this difficult time.”

“We’re appreciative of our Congressional Delegation for their assistance in securing this important funding which helps to ensure that DTC can continue to provide its critical transit services,” said John Sisson, chief executive officer of DTC. 

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Sens. Coons, Sanders push Trump Administration to get aid to nonprofits and small businesses

Senators to SBA Admin. Carranza: ‘Small businesses and nonprofits urgently need support—SBA must quickly implement CARES Act programs’

Senators request release of guidance clarifying SBA’s plan to quickly implement urgently needed programs 

WILMINGTON, Del. — Yesterday, U.S. Senator Chris Coons (D-Del.), Senator Bernie Sanders (I-Vt.), Senate Democratic Leader Chuck Schumer (D-N.Y.), and Senate Committee on Small Business and Entrepreneurship Ranking Member Ben Cardin (D-Md.) sent a letter to Small Business Administration (SBA) Administrator Jovita Carranza, urging swift implementation of small business programs included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and designed to help the nation’s small businesses and nonprofits stay afloat during this unprecedented crisis. The Senators’ letter follows their Tuesday call with SBA Administrator Carranza, where they discussed the implementation of these vital programs.

The senators emphasize that COVID-19 has wreaked havoc on employers and their workers across every industry and in every corner of the nation, leaving many small businesses struggling to absorb the significant loss of revenues caused by this public health crisis, and requires immediate, aggressive action by the federal government.

Senators Coons, Sanders, Schumer, and Cardin request the release of clear and comprehensive guidance clarifying how small businesses and nonprofits can receive timely assistance from the SBA, including: an implementation timeline and information on how businesses can access these programs and how lenders can facilitate loans; details on how SBA is coordinating with the Treasury Department to expedite the addition of new lenders to the certified SBA 7(a) lenders network; a commitment from SBA to a weekly report on loan program results; additional information regarding nonprofit eligibility and affiliation rules; additional guidance on SBA plans to ensure small, disadvantaged, and underserved businesses receive assistance; and information on debt relief for borrowers and operation of the Emergency Economic Injury Grant program.

The senators’ letter to SBA Administrator Carranza can be found here and below:

Dear Administrator Carranza,

We write to thank you for our recent phone call to discuss the implementation of the Small Business Administration’s (SBA) critical programs to help the nation’s small businesses and nonprofits stay afloat during this unprecedented crisis. COVID-19 has wreaked havoc on employers and their workers across every industry and in every corner of the nation. So many of our small businesses operate at close margins and have limited ability to absorb the kind of significant hit to revenues that this pandemic has caused. As we conveyed, and as we know you understand, a swift implementation is required of the small business assistance Congress included in the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act).

In follow-up to our conversation, we wanted to further reiterate our urgent request for the release of guidance that both reflects Congress’ intent in the CARES Act and that offers clarity and certainty to small businesses and nonprofits on how they can receive timely assistance from the SBA. Included below is a list of priority issues we discussed for consideration as SBA develops guidance.

Implementation Timeline

  • So many small businesses and nonprofits have weeks, if not days, before they go under. We need swift implementation of the various SBA programs in the legislation. While we appreciate that the Administration has committed to the first Paycheck Protection Program (PPP) loans being processed this Friday, we want to stress the need for clarity on how businesses can access these programs and lenders can facilitate the loans. Can you confirm when detailed guidance will be finalized and how this information will be shared with small businesses and organizations so they are aware? Can you confirm that as of this Friday, any eligible small business or nonprofit will be able to work with a certified SBA-7(a) lender to begin a PPP loan application?

Treasury Expansion of 7(a) Lender Network

  • As you know, this legislation authorized Treasury to designate many more financial institutions as new SBA eligible lenders. The PPP loan program’s success rests on this expansion of SBA’s lending network. Can you provide details on how SBA is coordinating with the Treasury Department to expedite the addition of new lenders to the certified SBA 7(a) lenders network? Related, what kind of steps are being taken to get information to our constituents on how these programs will work and where and when they can begin applying? How can a small business or nonprofit learn if their bank is eligible to process a loan and if not, where to locate an eligible financial institution to work with? We want to avoid a situation where small businesses do not know where to go to access these critical loans. In fact, we were encouraged by discussion of a hotline that small businesses and lenders can call if they encounter any complications or have additional questions. Will such a hotline be put in place? How will you ensure adequate staffing is available so wait times are minimal?

Reporting on Loan Program Results

  • We want to have a close understanding of how many loans are being made, who is receiving the loans, and how quickly funding is being drawn down in case Congress must act quickly in considering more funding for these programs. Can you commit to a weekly report on this information?

Nonprofit Eligibility

  • We have heard many concerns from our nonprofits that the SBA’s affiliation rules may prevent them from receiving assistance. How strictly will the SBA apply the affiliation rules to these programs during this crisis? Will the SBA address these concerns in the guidance for implementation? Can you provide clear direction to the nonprofit community on who may be eligible or not based on these affiliation rules? If so, when?
  • It has also been brought to our attention that thousands of nonprofits in Puerto Rico may be ineligible under the 501(c)(3) eligibility standard included in the Paycheck Protection Program. The issue is that Puerto Rico’s nonprofits register their status locally and not with the IRS, which technically means they are not 501(c)(3). This runs against Congress’ intent for most charitable nonprofits, with up to 500 employees, to qualify for this program. Nonprofits in our territories cannot be left out of this program because of this technicality. The SBA should consider evidence in determining 501(c)(3) eligibility that considers nonprofit organizations or entities that are organized or doing business under State law. Will the SBA address this issue in guidance? 
  • We are concerned that the SBA may rule houses of worship as ineligible for SBA’s Paycheck Protection Program. There are reasons that require a thoughtful application of the agency’s rules for houses of worship, but we also want to stress, to the extent legally possible, the need to support these institutions as 501(c)(3) organizations the CARES Act made eligible. How will the SBA address this in its guidance? 

Affiliation Rules

  • In addition to how affiliation rules may negatively impact nonprofits, we are also concerned that some genuine small businesses that have a relationship with investors may be left out of PPP loans due to affiliation rules. We are also concerned that lenders and the SBA could be hindered by the lack of clarity in the rules as they stand because they are cumbersome, complex and in some cases subjectiveWill the SBA issue swift guidance that has brighter lines and additional clarity to resolve confusion with regard to the eligibility of small businesses with minority investors in order to better inform applicants and avoid leaving out small businesses with a credible need?
Ensuring Small, Disadvantaged, and Underserved Businesses Receive Assistance

  • We are very concerned about the limited funding provided to the SBA’s PPP loans being drawn down quickly, especially given the provisions for franchises, big hotels and restaurants. What protocols are you putting in place to monitor the use of funds? 
  • Given these funds are first-come, first-serve, how are you ensuring that independent and community small businesses without the resources of larger companies are getting the assistance they need to access the program?

  • How will you ensure disadvantaged and underserved businesses are receiving assistance from this program, not just bigger businesses taking advantage of provisions that waived rules for franchises, big hotels and restaurants? 

Debt Relief for SBA Borrowers

  • The CARES Act included a provision to provide debt relief for six months to existing and new SBA borrowers. We view this as a forceful but simple step to stabilize the existing portfolio and enabling SBA lenders to focus on making new loans. It is our view that borrowers need not complete any paperwork to receive this benefit. Do you agree? What are your plans for notifying lenders and borrowers about this provision and for implementing it quickly?

Emergency Economic Injury Grant

  • The CARES Act included a requirement that a $10,000 grant be awarded within 3 days of an application to the SBA’s Economic Injury Disaster Loan program to help cover operating expenses while waiting for the loan processing. Are SBA staff prepared to fulfill this requirement?

By no means is this list comprehensive of the many issues that must be considered in implementation of the SBA’s programs included in the CARES Act. We hope that you will closely consider each of these topics and others that we will engage with you on in the days, weeks, and months ahead to ensure SBA is implementing the programs according to Congressional intent and in such a way that can best serve the nation’s small businesses and nonprofits. 

We once again thank you for your tremendous efforts in response to this national emergency and look forward to continued partnership.
Sincerely,

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Carper, Coons, colleagues call for Social Security recipients to get CARES Act direct cash assistance without having to file tax return

WASHINGTON — While the CARES Act that the President signed into law last week ensured that the Treasury Department had the authority to send automatic direct cash assistance to Social Security beneficiaries regardless of whether they file taxes or not, the Internal Revenue Service (IRS) released contradictory guidance earlier this week stating that Social Security beneficiaries would need to file tax returns in order to receive direct payments. 

U.S. Senators Tom Carper and Chris Coons (both D-Del.) joined a group of 41 senators in expressing alarm over this guidance and calling for the Treasury Department and Social Security Administration to ensure that all Social Security beneficiaries will automatically receive the direct assistance included in the CARES Act without having to file tax returns.

“This [IRS] filing requirement would place a significant burden on retired seniors and individuals who experience disabilities, especially given the current unavailability of tax filing assistance from Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs during the COVID-19 crisis,” wrote the senators. “We strongly urge you to ensure that economic stimulus payments are automatically sent to vulnerable seniors and individuals who experience disabilities, without these individuals needing to file a tax return.”

Senators on the letter in addition to Carper and Coons are Senators Maggie Hassan (D-N.H.), Sherrod Brown (D-Ohio), Bob Casey (D-Pa.), Chuck Schumer (D-N.Y.), Ron Wyden (D-Ore.), Sheldon Whitehouse (D-R.I.), Michael F. Bennet (D-Colo.), Robert Menendez (D-N.J.), Catherine Cortez Masto (D-Nev.), Debbie Stabenow (D-Mich.), Benjamin L. Cardin (D-Md.), Mark R. Warner (D-Va.), Richard J. Durbin (D-Ill.), Jeanne Shaheen (D-N.H.), Richard Blumenthal (D-Conn.), Jacky Rosen (D-Nev.), Doug Jones (D-Ala.), Jack Reed (D-R.I.), Amy Klobuchar (D-Minn.), Edward J. Markey (D-Mass.), Gary C. Peters (D-Mich.), Tim Kaine (D-Va.), Martin Heinrich (D-N.M.), Bernard Sanders (I-Vt.), Mazie K. Hirono (D-Hawaii), Tom Udall (D-N.M.), Chris Van Hollen (D-Md.), Tammy Duckworth (D-Ill.), Tammy Baldwin (D-Wis.), Angus S. King, Jr. (I-Maine), Tina Smith (D-Minn.), Patty Murray (D-Wash.), Kyrsten Sinema (D-Ariz.), Elizabeth Warren (D-Mass.), Cory Booker (D-N.J.), Patrick Leahy (D-Vt.), Kirsten Gillibrand (D-N.Y.), Chris Murphy (D-Ct.), and Maria Cantwell (D-Wash.).

Read the full letter here and below:

Dear Secretary Mnuchin and Commissioner Saul:

The COVID-19 public health emergency is taking a massive economic toll on families across the country. To provide immediate financial assistance to struggling individuals during this crisis, Congress passed and the President signed the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislation directly provides most Americans with stimulus payments to help cover necessary personal expenses. 

The Internal Revenue Service (IRS) will automatically send stimulus payments to eligible taxpayers who filed a 2018 or 2019 tax return. However, many Social Security beneficiaries, including retired seniors and individuals who experience disabilities, typically do not file tax returns. To ensure that these vulnerable individuals automatically receive stimulus payments, the CARES Act explicitly provides the Treasury Department with the authority to provide payments to seniors receiving Social Security retirement benefits and to individuals receiving Social Security disability benefits, even if these individuals do not file tax returns. 

Unfortunately, on March 30, the IRS published guidance indicating that the agency may require recipients of Social Security retirement and disability benefits to file 2019 tax returns to receive stimulus payments. This filing requirement would place a significant burden on retired seniors and individuals who experience disabilities, especially given the current unavailability of tax filing assistance from Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs during the COVID-19 crisis.

Along with colleagues on the House Ways and Means Committee, we strongly urge you to ensure that economic stimulus payments are automatically sent to vulnerable seniors and individuals who experience disabilities, without these individuals needing to file a tax return.

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Sen. Coons: U.S. must update, expand domestic vaccine manufacturing capacity to respond to COVID-19, future pandemics

WILMINGTON, Del. — U.S. Sen. Chris Coons (D-Del.), a member of the Senate Appropriations Committee, is highlighting the urgent need to update and expand our domestic vaccine manufacturing capacity, including at four federally funded vaccine development and manufacturing sites, to confront COVID-19. With public health officials noting the existing facilities’ limited role to date in countering this pandemic, Sen. Coons helped secure $3.5 billion in the relief package signed by the President last week for the Biomedical Advanced Research and Development Authority (BARDA). The funding will be used in part for the development of manufacturing technologies to ensure a robust, agile, U.S.-based supply chain of vaccines, therapeutics, and active pharmaceutical ingredients.

“The biggest challenge we face in the United States is not developing a vaccine, tricky as that step is,” Sen. Coons said. “It’s that we lack the domestic manufacturing capacity to quickly produce a vaccine once it’s proven and deliver it to the American people. This funding will help develop cutting-edge technology so we can upgrade existing sites to address COVID-19 and support a network of advanced facilities around the country to prevent, prepare for, and respond to the next pandemic. We cannot afford to be caught flat-footed when American lives and our security are at risk.”

The nation’s four federal biopharmaceutical manufacturing sites were envisioned as agile facilities that could rapidly make vaccines and other therapeutics. Recent innovative manufacturing platforms have the potential to reinforce that mission by expanding the facilities’ capacity to quickly ramp up production of countermeasures for diverse or multiple threats. The funding Sen. Coons secured will support the demonstration of next-generation manufacturing platforms so they can be quickly deployed in these facilities, thereby facilitating rapid production. The $3.5 billion appropriated to BARDA will also be used to purchase and manufacture vaccines, diagnostics, and other key tools.

In addition to securing funding for BARDA, Sen. Coons led a bipartisan, bicameral effort to prevent Manufacturing Extension Partnership, or MEP, centers from shuttering and to make sure they are used as a resource during the pandemic. Across all 50 states and Puerto Rico, the MEP network provides manufacturers with resources to promote growth, expand capacity, and adapt to change.

Sen. Coons is continuing to work to scale up biopharmaceutical manufacturing capacity in the fourth coronavirus relief package, including by building infrastructure for fast, aggressive development of new technology.

Sens. Coons, Murphy urge diplomatic solution in Libya ahead of COVID-19 crisis

Earlier this week, Libya confirmed first case of COVID-19

Senators: ‘We call on the warring parties, their foreign backers, and the international community to immediately implement a nationwide ceasefire and fully respect the UN arms embargo.’

WASHINGTON — Today, U.S. Senators Chris Coons (D-Del.) and Chris Murphy (D-Conn.) released the following statement after the confirmation of the first COVID-19 cases in Libya. In November, Senator Coons introduced the Libya Stabilization Act to clarify and strengthen U.S. policy in support of a diplomatic solution to the conflict in Libya.

“Earlier this week, Libya confirmed its first case of COVID-19, and it is only a matter of time before the virus devastates families in Libya’s war-torn capital, its refugee and migrant communities, and beyond.  We are particularly concerned by this inevitability, given the humanitarian crisis consuming Libya and Libya’s importance to regional, European, and American security.

“Despite pledges by the Libyan National Army and the United Nations-backed Government of National Accord to respect a humanitarian pause, fighting continues to rage in Libya.  We condemn the ongoing violence and foreign governments’ repeated violations of the UN arms embargo.  Furthermore, we are concerned for the wellbeing of over 48,000 registered refugees and asylum-seekers, many of whom will no longer receive support from international aid organizations that are halting numerous activities – including worldwide refugee resettlement – in the face of the pandemic.

“As members of the Senate Foreign Relations Committee and cosponsors of S. 2934, a bipartisan bill urging a diplomatic solution to the conflict in Libya, we call on the warring parties, their foreign backers, and the international community to immediately implement a nationwide ceasefire and fully respect the UN arms embargo.  Such actions are vital to promote a peaceful resolution to the conflict and attempt to contain the spread of COVID-19.” 

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