Congress Update: Small Business Implications of House Coronavirus Relief Package

03/16/2020 2:29 PM | ACRAsphere Blog Team

Congress is currently working on relief package to combat the economic and public health effects of COVID-19. This is likely to be the first package of many, and a large portion of the discussions have been devoted to protecting American workers in the event of having to take unexpected leave. 

The House of Representatives passed their version of a relief package on Saturday morning, but some small businesses have expressed their concerns about provisions requiring them to offer up to 12 weeks of paid leave to their workers, citing the additional financial burden this would place on their businesses.  From Roll Call:

"Republicans thought they'd settled on a formula to alleviate concerns: Provide generous tax credits for businesses with 500 or fewer employees subject to the new requirements, who under current law don't have to pay workers who take up to 12 weeks off under the Family and Medical Leave Act. There's also a hardship waiver for firms with 50 workers or less, subject to Labor Department approval.

Small businesses voiced concerns that the tax relief wouldn't come quickly enough for them to make payroll, however, because the tax credits wouldn't come until after the end of each quarter. President Donald Trump said he'd agreed to have Mnuchin provide flexibility so that businesses could get the cash upfront. House Ways and Means ranking member Kevin Brady, R-Texas, announced his support for the bill after personal assurances from Trump."

Read the full article at Roll Call for more in-depth analysis. Because the majority of CRM firms are qualify as small businesses under federal size standards, ACRA will continue to monitor and provide updates on the relief packages being discussed in Washington.


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