Payroll Guarantees to last through the crisis and to be in place for cyclical spikes.
To date, federal small business relief packages have not adequately addressed this crisis, with 34.5 million workers - or 1 in 5 workers - claiming unemployment benefits, employer-based health insurance evaporating for 12.7 million people, and millions of small business owners on the verge of bankruptcy. With experts now forecasting that the pandemic will last for up to two years with flare ups by geography, season and business - we need to expand the time horizon of key supports to address this challenge. In the next package, Congress must provide a comprehensive and coordinated set of policies that support people who have lost their jobs, payroll supports to keep employees connected to their employers - whether they are working or not or only partially working.
Payroll Support Policies.
Payroll Guarantees. Countries that elected direct subsidies to business, have been spared the massive spike in unemployment we have experienced here in the US. We need direct subsidies -- not loans to all employers with fewer than 500 employees to cover fixed costs and bring employees back on payroll at full wages. Either through direct payroll subsidies, or expanding the current Employee Retention Tax Credit.
Workshare programs allow employers to partially lay off workers while they can also access partial unemployment benefits. This innovative and flexible program -- ideal for cyclical downturns -- keeps employees attached to their employer allowing for worker stability and quick ramp-up. The Rebuilding Main Street Act strengthens workshare from the CARES Act in several ways, including pairing it with retrofit grants. (see below for more.)
Second round of PPP Prioritized Paycheck Protection Program (P4) Act Senator Cardin, Senator Coons, Senator Shaheen P4 Act opens up a second round of PPP to small businesses who have exhausted the first round and suffered a drop of revenue of 50% or more.
Extended UI. Boosted UI payments that have prevented widespread economic ruin, expired at the end of July - and must be extended. This support should be paired with federal support for rehire bonuses to address inequities in salary scales and strengthened Family First sick leave support. We need a strong and complementary program of support for employers and employees for the year ahead.
Small businesses need payroll guarantees.
Main Street Alliance member KB Brown was left out of the PPP - here’s how a payroll program like the Paycheck Recover Act would support him.
