As of this writing, the U.S. Congress has passed an Emergency Supplemental Appropriations disaster assistance bill entitled the Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020, H.R. 6074.  This new law allows for $1 billion in loan subsidies to be made available to assist small businesses impacted by financial losses as a result of the coronavirus.   The Small Business Administration (SBA) is now enabled to provide an estimated $7 billion in loans to these same impacted businesses.   An additional $20 million is available to administer these new funds.  Congress sent this to the President with a robust, bipartisan vote.

In addition, Congress is reviewing the impact the coronavirus could have on workers and business owners and what can be done to assist.  Congress is currently debating H.R. 6201, the Families First Coronavirus Response Act, which is designed to “bolster the federal government’s response to the coronavirus outbreak and address the severe impacts of the coronavirus on Americans’ personal safety and financial security” according to the U.S. House Appropriations Committee.

Important provisions in the Families First legislation include: 

• Emergency Paid Sick Leave Act
• Tax Credits for Paid Sick and Paid Family and Medical Leave

The Automotive Service Association joined other aftermarket associations, including the Automotive Oil Change Association, Auto Care Association, Tire Industry Association, Independent Lubricant Manufacturers Association, Service Station Dealers of America, California Autobody Association, California Automotive Business Coalition and the International Carwash Association in a letter to House Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA) requesting that Congress and the Administration consider additional small business assistance including:

• Lawful declaration that COVID-19 is a “DISASTER” for the purposes of allowing small businesses to obtain funding directly through the Small Business Administration and to obtain access to any other state, federal, and/or private relief dependent on a federal “disaster” declaration;
   
• Allow 100% deduction of business losses for non-remote-function-capable small businesses (NRFCSB) for the 2020 tax year applicable to all business formation types (e.g., S Corporations, Sole Proprietors, Partnerships, etc.). A NRFCSB is defined as a small business according to Small Business Administration standards that requires onsite employee activity and consumer interaction in order to engage in its core functions;
   
• Allow NRFCSB employees to qualify for Federal-State Unemployment Insurance Program benefits including payroll assistance for reduced hours and without impacting the employer’s insurance rate; 

   
• Provide a federal Child Care Subsidy for NRFCSB employers and employees. 

   
• Provide Mortgage Assistance plans for NRFCSB employers and employees. 

   
• Provide federal assistance for health care costs and/or a mandate to private health insurers that they must cover for free or at most the actual cost of necessary health care related to the COVID- 19 pandemic; and 

   
• Include Tax-Exempt Entities in temporary aid to address the harm they’re experiencing from event cancellations and reduced meeting attendance as a result of COVID-19. Specifically, we urge you to include associations, nonprofits and other tax-exempt organizations within any federal aid packages or supplemental appropriations measures.

The Trump Administration is also considering relief in the form of tax deferments and business loans.  The House of Representatives and the Administration are still working on the details of the package and negotiations with the Senate are ongoing for this latest, related legislation.

Guidance for businesses impacted by coronavirus is already available at www.sba.gov.