Virginia Chamber of Commerce Weekly COVID-19 Update:  March 27, 2020 

A Message from Virginia Chamber of Commerce President and CEO, Barry DuVal: 

The Virginia Chamber has developed a new weekly newsletter to ensure members of the business community stay informed and healthy during the COVID-19 outbreak.

Shortly after the first cases of COVID-19 were identified in the United States, the Virginia Chamber established the COVID-19 Resource Center. It is our goal that the business community will look to this center as a key resource for information to not only prevent the further spread of COVID-19 but also aid businesses and workers suffering from economic hardship. The resource center includes information from our government stakeholders, including the Governor’s Administration, the Centers for Disease Control and Prevention, the Virginia Department of Health, and the Occupational Safety and Health Administration, as well as other helpful, private sector resources.  I encourage you to share this information with your colleagues, employees, and members of your community.

Earlier this week, the U.S. Senate voted to pass the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency relief for American workers and businesses that have been impacted by the COVID-19 pandemic. Analysis of the CARES Act can be found below.

With the number of confirmed cases of COVID-19 in the Commonwealth reaching 604, as of the last update, there have been many changes on the state-level that impact all members of our community.

Governor Northam announced that Virginia’s application to the U.S. Small Business Administration (SBA) for an “Economic Injury Disaster Loan Declaration” was approved. Applications can be submitted directly through the SBA website and I encourage you to visit the Chamber’s resource center for information on upcoming webinars, provided by some of our partners, to discuss the application process.

On Monday, Governor Northam announced the implementation of Executive Order 53 (EO 53), which can be found here. Effective at midnight on Tuesday, March 24, certain non-essential businesses had to close or restrict operations for the next 30 days. Information on the categories of businesses impacted by this order and additional guidance can be found below. While this comes as devastating news for many of our business around the Commonwealth, the Chamber encourages members of our community to come together to help support these businesses and their employees during these unprecedented times. Small actions can make a big difference for the lives of small business owners. These actions could include ordering no-contact take out from your local restaurant, continuing to pay or send a tip to your barber, dog-walker, or childcare provider, or purchase an online gift card from your favorite local retail location. More tips on how to support your local businesses can be found on the Chamber’s COVID-19 Resource Center.

EO 53 also announced the closure of K-12 schools through the end of the academic year. The Virginia Department of Education has established a resource page for students and parents that includes educational guides, approved meal service sites, and the latest information addressing the most frequently asked questions. The Virginia Department of Education also announced that they will be submitting a waiver for the federal testing requirements, meaning students will likely not be participating in Standards of Learning (SOL) testing this school year. While students remain home for the remainder of the academic year, many school districts are in need of additional CPUs and laptops to provide their students, who may not otherwise have access to a computer, for distant learning. If your businesses have any used devices that you would be willing to donate to support distant learning, please contact your local superintendent. Additional information can be found below.

During these unprecedented times, it is important that we are reminded of the strength and resilience of our nation. We are all in this together and can only be successful in our efforts, as such. In a free enterprise system, commerce will always endure, but it is our responsibility to take the necessary actions to see that the spread of COVID-19 is stopped so we can return as a healthy and prosperous Virginia.

Best regards,

Barry DuVal

President

Virginia Chamber Event Updates

2020 Fantastic 50 Awards Reception

April 30, 2020 – CANCELLED

While we are disappointed that the celebration will not occur as scheduled, we have planned alternative ways to highlight this year’s winners in the months ahead as we honor the 50 fastest growing businesses in the Commonwealth.

2020 Virginia Chamber Annual Dinner

May 13, 2020 – POSTPONED

Due to the COVID-19 outbreak, the Virginia Chamber has made the decision to postpone Annual Dinner until the fall. Our team is currently working to confirm the new date for this event and will communicate those details as they become available.

Governor Northam Orders Statewide Closure of Certain Non-Essential Businesses, Schools, etc. 

On Monday, Governor Northam announced the implementation of Executive Order 53 (EO 53), which can be found here. Effective at midnight on Tuesday, March 24 certain non-essential businesses must close or have restricted operations. EO 53 places restrictions on the following three categories of businesses:

1. Recreational and entertainment businesses, like bowling alleys and movie theaters, must close;
2. Restaurants and other businesses providing food and beverage services, like breweries and wineries, may only offer takeout and delivery services, as long as they are able to comply with social distancing and hygiene requirements; and
3. Non-essential brick and mortar stores may stay open as long as they restrict their stores to 10 patrons or less, not including staff, and comply with social distancing recommendations.

Professional businesses not listed above must utilize telework as much as possible. Where telework is not feasible, such businesses must adhere to social distancing recommendations, enhanced sanitizing procedures, and apply relevant workplace guidance from state and federal authorities, including CDC, OSHA, and the Virginia Department of Labor and Industry.

Businesses in violation of this order may be charged with a Class 1 misdemeanor.

The full press release can be found here.

Additional guidance and a Frequently Asked Questions document regarding EO-53 can be found here.

Legislative Analysis: COVID-19 Stimulus Package

Earlier this week, the U.S. Senate unanimously approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748) to provide relief for all Americans and the business community in response to the COVID-19 outbreak. The House of Representatives is expected to pass the legislation later today. Please see below for a summary of the most important components of the legislation. A more detailed summary can be found here.

Business Provisions

• Small businesses

• $349B for the “Paycheck Protection Program” to directly assist small businesses, self-employed individuals, and independent contractors.
• Businesses can receive a loan equal to 2.5 times their average monthly payroll (up to $10M).
• Applies to businesses with fewer than 500 employees (or applicable Small Business Administration (SBA) size standards).
• Employers that maintain payroll will have the portion of the loan used for payroll costs, interest on mortgage obligations, rent, and utilities forgiven.
• Retroactive to February 15 and extends to June 30, 2020.
• 501(c)3 organizations are eligible for assistance through this program; however, 501(c)6 organizations are not.
• $17B for the SBA to pay principal, interest, and fees on all existing SBA loan products (7(a), Community Advantage, 504, and Microloan programs) for six months.

• General business community

• $500B to Treasury’s Exchange Stabilization Fund for emergency relief.
• $454B for loans and loan guarantees in support of facilities established by the Fed under 13(3) authority to provide liquidity to businesses, states, and municipalities.
• $17B set aside in loans and loan guarantees for businesses important to “maintaining national security.”
• The duration of loans and loan guarantees cannot exceed five years.

Labor Provisions

• Increases the maximum unemployment benefit by $600/week (in addition to what states pay) through July 2020.

• Includes individuals who are part-time and independent contractors (“gig workers”).
• Extends UI by 13 weeks beyond what states typically allow.

Tax Provisions

• Employers (regardless of size) that continue paying employees who are furloughed may be eligible for a 50% refundable payroll tax credit on up to $10,000 of wages paid to those employees, known as the “employee retention tax credit”.

• Businesses that file for the employee retention tax credit are not eligible to receive SBA loan assistance via the “Paycheck Protection Program.”

• Employers can delay the payment of their 2020 payroll taxes until 2021 and 2022.

Health Care Provisions

• +$140B for the national health care system.

• $100B for a new grant fund for hospitals, public entities, and nonprofit entities to cover unreimbursed health care related expenses or lost revenues from the COVID-19 outbreak.
• $16B for the Strategic National Stockpile to procure medical supplies for federal and state response efforts.
• $11B for R&D of vaccines and diagnostics to address COVID-19.
• $4.3B for the Centers for Disease Control.
• $185M for rural health programs (hospitals and telehealth programs).

Individual Provisions

• Establishes a one-time tax rebate check of $1,200 per individual(s) with an adjusted gross income of ≤$75,000 for single filers and ≤$150,000 for joint filers, with an additional $500 per child.

• Rebate checks would phase down for individuals above those salary thresholds and would phase out for single filers earning above $99,000 and joint filers with no children earning above $198,000.

• Waives the 10% penalty for early distributions from 401(k)s and IRAs made at any time during 2020.

Government Provisions

• $150B for state and local governments, with an $8B set aside for local governments.

• Each state would receive a minimum of $1.25B.

To better understand the Coronavirus Aid, Relief, and Economic Security (CARES) Act and how it impacts you and your members, we encourage you to visit our COVID-19 Resource Center for additional information and updates on this summary.

Click here to review the legislative analysis. 

Opportunities to Support Your Community During COVID-19

Support The Schools In Your Community

Many schools around the Commonwealth are in need of used CPUs and laptops to provide to students during distant learning. If your businesses has any of these items you would be willing to donate to a school in need, please contact your local superintendent to learn how to provide these resources to your school district.

Click here to find the contact information for the superintendent for your local school district.

PPE Donations Needed to Support Healthcare Providers Responding to COVID-19

The COVID-19 pandemic has resulted in dramatic increases in demand for critical medical supplies, in particular, personal protective equipment (PPE, such as N95 respirators or latex gloves). Due to this big increase in demand plus supply constraints of producers of those products, hospitals in Virginia are facing the prospect of shortages that could impact healthcare delivery. Virginia employers who may be able to donate these critically needed items (top priorities at the present time are surgical masks, N95 respirators, disposable medical gowns, latex gloves, ventilators, face shields, and COVID-19 test strips / test kits), please contact Stacie Neal, Branch Chief of the Planning Division at the Virginia Department of Emergency Management (VDEM), who will coordinate logistics. Stacie can be reached at stacie.neal@vdem.virginia.gov.

Shop Small, Shop Local

Support the local, independent small businesses in your community!

• Buy a gift card your favorite local businesses.
• Shop local online and choose shipping or delivery. Many businesses are offering free online shipping!
• Order delivery or contact-free pick up from locals, independent restaurants in your community.
• If you are able, skip the refund on a local show or experience.
• If you are able, considerer paying or even just tipping regularly scheduled services you are unable to use like a haircut, manicure, dog walking, house cleaning services.

Social media – leave a review, share their posts, comment to increase engagement.

Paid Sick Leave Update

On March 24, the U.S. Department of Labor (DOL) published guidance explaining the Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (Act). This Act will take effect on April 1, 2020 and applies to employers with fewer than 500 employees. To ensure that you are up to date on all guidelines, please see the links below to access the relevant information:

• Families First Coronavirus Response Act: Employee Paid Leave Rights Fact Sheet
• Families First Coronavirus Response Act: Employer Paid Leave Requirements Fact Sheet
• Families First Coronavirus Response Act: Questions and Answers Fact Sheet

The DOL is expected to be providing additional guidance in the near future.