Federal COVID-19 Recovery Fund
WSIA has joined the America’s Recovery Fund Coalition, a broad-based group of more than 100 trade associations and business organizations representing 30 business sectors with 58 million employees and 45 percent of the American workforce advocating for a grant-based federal assistance program to power the recovery of American enterprise. This recovery fund initiative would be part of the next wave of stimulus that Congress proposes.
America’s Recovery Fund (ARFC) would provide funding to help businesses retain and rehire staff, pay rent, adapt to new requirements and meet certain debt and tax obligations. Active support for this type of comprehensive program is the most productive approach to addressing the immediate needs of businesses and their employees directly impacted by the COVID-19 pandemic disruptions—not violating the U.S. Constitution and setting a dangerous precedent in contract law and insurance policy as retroactive business interruption coverage legislation would do.
On July 20, Rep. Fil Vela (D-TX) and Rep. Lance Gooden (R-TX) filed the Small Business Comeback Act (H.R. 7671) to establish the Small Business Recovery Fund. This legislation is similar to the Fund the concept developed by the ARFC. As proposed, it would provide up to four months of grant money to businesses impacted by the COVID-19 pandemic. It is considered a complement to the CARES Act and Payroll Protection Program (PPP), expanding the PPP by providing additional funds to help businesses make payroll, pay specific expenses and continue to retain or rehire employees. Eligibility for businesses is broader than the PPP, with caps at the lesser of the businesses’ monthly average in the year preceding application or $50,000,000. No Senate companion bill has been filed at this time.
The coalition issued a joint letter to the White House and Congress on May 3, 2020 to announce its creation. WSIA encourages all members to educate themselves on the America’s Recovery Fund proposal.