03.30.20

Information and Resources on the COVID-19 Coronavirus

I know that Alaskans are concerned about the unfolding COVID-19 coronavirus outbreak. We are committed to providing you with the most up-to-date information about the virus, including information about how to protect yourself and answers to questions about how prevention efforts could affect day-to-day life.  

The COVID-19 coronavirus was first detected in Wuhan City, Hubei Province, China. The first infections were linked to a live animal market, but the virus is now spreading from person-to-person. On January 30, the International Health Regulations Emergency Committee of the World Health Organization declared the outbreak a “public health emergency of international concern. On January 31, Health and Human Services Secretary Alex M. Azar II declared a public health emergency (PHE) for the United States to aid the nation’s health care community in responding to COVID-19.

The U.S. government is focused on continuing its containment efforts, ramping up resources to support state and local authorities, supporting the health care professionals on the front lines, and helping families and small businesses that are struggling with the economic consequences of the pandemic. Since the outbreak of COVID-19, Congress has passed and the President has signed three main legislative packages to respond to the crisis:

  • PHASE 1: The Coronavirus Preparedness & Response Supplemental Appropriations Act
    This legislation is a $8.3 billion funding package to strengthen the federal response to the COVID-19 novel coronavirus outbreak. These funds are being used to bolster response and prevention efforts, including deploying resources for patient monitoring, lab testing, acquisition of test kits, securing protective equipment, and conducting research, development, and acquisition of a vaccine. Importantly, this bipartisan package will allocate money to state, local and tribal health providers, including our many community health centers.

  • PHASE 2: The Families First Coronavirus Response Act
    This bill provided $105 billion aimed at bolstering the federal government’s response to the COVID-19 pandemic to help mitigate the health and economic impacts of the outbreak by ensuring that testing is free for Americans, paid sick leave as well as family and medical leave is available, enhancing unemployment insurance to help workers, and ensuring that students, seniors, and low-income households can continue to access nutrition assistance.

  • PHASE 3: The Coronavirus Aid, Relief, and Economic Security (CARES) Act
    The CARES Act includes approximately $2 trillion, and is focused on 4 key areas: putting cash directly in the hands of hurting families in Alaska and throughout the country; delivering rapid relief to the small businesses that are being crushed by this pandemic and having to lay off their workers; stabilizing key sectors of the economy experiencing significant stress in order to avoid massive layoffs that are now very quickly coming on the horizon and starting to happen in America; and sending a surge of new resources to medical professionals, hospitals, and community hospitals that are on the frontlines.

Below is more information and guidance on the CARES Act resources being made available to Alaskans, as well as a series of links to reputable sources of information about the virus, travel advisories, and other relevant topics. If you have related concerns or questions, do not hesitate to reach out to my team in Alaska at 907.271.5915.


_______

 

CARES Act

 

On March 25, the Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic aid package to get cash into the hands of Alaskans struggling to make ends meet; provide rapid relief for small businesses and workers; stabilize key sectors of the economy to avoid massive layoffs; and surging unprecedented resources to medical professionals on the front lines. Below are details for Alaskans, families, businesses and non-profits looking to access the relief made available by the CARES Act.

 

Cash in the Hands of Alaskans

 

Checks to Individuals and Families

The CARES Act provides a $1,200 check for individuals ($2,400 for couples), plus $500 for each child. The benefit is gradually phased out for individuals making between $75,000-$99,000 per year, heads of household making between $112,500-$146,500, and joint filers making between $150,000-$198,000 respectively.

 

Tax Relief for Individuals 

The IRS and the Treasury Department have deferred the filing and payment date for federal income taxes until July 15. Taxpayers have an extra 90 days to file and pay without interest or penalties. This includes a deferral for individual, corporate, partnership, S-corp, and self-employed income.

 

Student Loan Relief

The CARES Act defers payment of all student loans, principal and interest, for six months.

 

Expanded Unemployment Insurance

The CARES Act provides $250 billion in expanded unemployment insurance to be delivered through state unemployment offices. Benefits are expanded to individuals who are unable to work due to the coronavirus. Importantly, the bill also expands benefits to those who are traditionally not eligible, such as the self-employed, those with limited work history, and independent contractors, including Alaska’s fishermen.

HELPFUL RESOURCES

 

Rapid Relief for Alaska’s Small Businesses

 

The Paycheck Protection Program (PPP)

The PPP offers $350 billion in low-interest loans to small businesses, implemented through the Small Business Administration’s flagship 7(a) program and local Alaska banks and credit unions. These loans have a maximum of $10 million, are 100% federally guaranteed, and forgivable for the 8-week period after origination to the extent they are used for certain qualified expenses—including payroll, family or sick leave, health care benefit payments, retirement payments, mortgage interest, rent, utilities. The calculation of the loan amount for each borrower is equal to 2.5 times the average monthly wages from the previous year subject to the $10 million cap.

The amount forgiven will be reduced proportionally by any reductions in an employer’s payroll during the 8-week forgiveness period, in order to provide the maximum incentive for businesses to retain their workers. Importantly, for those small businesses that have already been forced to lay off workers, the CARES Act allows them 30 days from enactment for the borrower to return to February 15 payroll levels without a forgiveness penalty.

At the end of the 8-week forgiveness period, the borrower will provide to the lender documentation that verifies their qualified forgivable expense payments. The lender then reports their expected loan forgiveness amount for a loan or pool of loans to the SBA, and the SBA will purchase that amount of the loan from the lender.

Eligible small businesses for the PPP benefit are those with less than 500 employees or otherwise considered as a “small business concern” according to the SBA. Eligibility is also expanded to include the self-employed, sole-proprietors, certain non-profits, and tribal businesses.

The goal of the PPP is to maintain the employer-employee relationship, enabling small businesses and the economy to bounce back faster once the pandemic has passed.

 

Expedited Economic Injury Disaster Loans (EIDL)

On March 21, Alaska was approved for the Small Business Administration’s Economic Injury Disaster Loans (EIDLs), which provide low-interest loans to small businesses suffering economic injury as a result of the coronavirus. These loans are issued at a maximum of $2 million and can be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact.

The CARES Act expands this EIDL program with an additional $10 billion in appropriations, and by making sole-proprietors, independent contractors, cooperatives, and tribal businesses eligible. 

Under the CARES Act, an eligible entity that has applied for an EIDL loan can request an advance of up to $10,000 which the SBA must distribute within 3 days. This advance does not have to be repaid, even if the borrower is denied for the EIDL. This is essentially a small, one-time grant to eligible small businesses. Importantly, an EIDL may also be refinanced into the forgivable PPP once a borrower is approved, and the $10,000 grant would be deducted from the amount forgiven.

 

Income and Payroll Tax Relief

Payroll taxes can be deferred until the end of the year for entities that do not participate in the Paycheck Protection Program. Half of the deferred amount would be due in 2021, with the other half due in 2022. The IRS and the Treasury Department have deferred the filing and payment date for federal income taxes until July 15, including for corporate, partnership, and S-corp income.

 

Support for Alaska’s Fishermen

In addition to the Paycheck Protection Program and the expanded unemployment insurance, both of which are available to Alaska’s fishermen, the CARES Act also appropriates $300 million in direct assistance for commercial, charter, and subsistence fishermen, processors, fishery dependent businesses and coastal communities. This assistance is structured similar to fishery disaster payments, but the delivery of the funds will be quicker by allowing the money to be awarded on a rolling basis, even while a season is still underway, and forgoing the usual requirement for the Governor to declare a disaster.

 

Support for Non-Profits

Certain non-profits [501(c)(3) and 501(c)(19) veterans organizations] with less than 500 employees are eligible for the Paycheck Protection Program. However, these entities are subject to SBA’s affiliation rules, meaning, in many cases, a large parent organization will be disqualifying.

The CARES Act specifies that larger non-profits be included in the mid-sized business Federal Reserve lending facility for entities with between 500 and 10,000 employees, which I will describe in more detail later.

To encourage continued charitable giving to non-profits, the CARES Act allows taxpayers who take the standard deduction and do not itemize to take a charitable deduction up to $300; suspends the limit for charitable deductions for taxpayers who do itemize, and; increases the corporate limitation on charitable giving to 25% of taxable income.

Finally, the CARES Act also appropriates funds for various nutrition programs, $45 million for family violence shelters, $2 million for the National Domestic Violence Hotline, and $25 million for runaway and homeless youth programs.


HELPFUL RESOURCES

 

Stabilizing Key Sectors of the Economy

The CARES Act provides $500 billion to the U.S. Treasury Exchange Stabilization Fund for direct loans from Treasury to specific sectors of the economy, and loans, loan guarantees, and other investments through Federal Reserve lending facilities to other large and mid-sized businesses, as well as state and local governments. Eligible businesses are: “United States business that have not otherwise received adequate economic relief in the form of loans or loan guarantees provided under the PPP section of the CARES Act.”

 

Direct Loans from the U.S. Treasury

The U.S. Department of the Treasury can make loans up to $25 billion for passenger air carriers; up to $4 billion for cargo air carriers; and up to $17 billion for “businesses critical to maintaining national security.” Many of Alaska’s small, Part 135 carriers are eligible for this direct lending.

The legislation requires the U.S. Secretary of Transportation to take into consideration the air transportation needs of small and remote communities and the needs of health care and pharmaceutical supply chains.

 

Federal Reserve Lending Facilities for Other Businesses, States, and Municipalities

The remaining $454 billion going to fund the Federal Reserve’s 13(3) authority through special lending facilities that will be available to eligible businesses, states, and municipalities.

These lending facilities can purchase interests directly, in the secondary market, or make direct loans in order to provide much-needed liquidity and stabilization to these markets.

They must be “broad based,” meaning “designed for the purpose of providing liquidity to an identifiable market or sector of the financial system” and not designed to assist individual failing entities (Federal Reserve rules clarify that a lending facility where more than 5 entities are eligible qualifies as “broad based”). 

A participant must not be able to secure adequate credit elsewhere, and a participant must not be insolvent. Because the Fed expects that borrowers will pay them back, the Fed can lend and invest more than just the dollar amount. The Treasury estimates that this $454 billion infusion can be leveraged into over $4 trillion. 

The CARES Act establishes safeguards for this relief, including: limitations on stock repurchases, workforce reduction, and executive compensation; as well as established a congressionally-appointed oversight committee and a designated inspector general. 

Additionally, to prevent conflicts of interest, companies may not receive relief under this section if certain members of the administration, members of Congress, or their families own more than 20% of the company.

HELPFUL RESOURCES

 

Surge of Funding for States, Tribes, Hospitals, Community Health Centers, and Medical Professionals

 

A Surge in Funding for States, Cities, and Municipalities

The coronavirus has dramatically impacted the financial wherewithal of our state and local communities. A major portion of the CARES Act provides $150 billion in funding for these entities. Generally, this is distributed according to per capita population, however, a minimum payment of $1.25 billion is required per state. Alaska will receive around $1.3 billion.

A Massive Surge of Resources for Hospitals, Community Health Centers, and Medical Professionals on the Front Lines

The CARES Act provides $150 billion to ensure health care providers and hospitals continue to receive the support they need for COVID-19-related expenses and lost revenue, as well as $1.32 billion in additional funding for community health centers. The bill expands access to telehealth services provided by community health centers, and makes changes to Medicare to bolster our health system. Additionally, the bill addresses liability issues to assist with supply shortages for critical equipment, such as medical masks, and encourages the development and testing of new vaccines and treatments.

 

$8 Billion Stabilization Fund for Tribes

The CARES Act allocates $1.03 billion for the Indian Health Services, $450 million of which goes directly to tribal health entities.

There is also $1.5 billion for the Centers for Disease Control’s state and local preparedness grants, which includes a provision that allocates no less than $125 million of these funds to tribes, tribal organizations, urban Indian Health organizations, or health services provided to tribes.


HELPFUL RESOURCES

_______

 

30 Days to Slow the Spread

On March 16, 2020, the White House Coronavirus Task Force and the Centers for Disease Control announced a "15 Days to Slow the Spread" initiative with guidelines for all Americans to follow to help arrest the growth of the COVID-19 pandemic. On March 29, 2020, President Trump indicated those guidelines would be extended for an additional 30 days through the end of April.

30 Days to Slow the Spread

15 Days - Slide 2

Click here for higher resolution version of the initiative flyer.

_______



Frequently Asked Questions


How does the COVID-19 Coronavirus spread?

The virus is thought to spread mainly from person-to-person between people who are in close contact with one another (within about 6 feet) or through respiratory droplets produced when an infected person coughs or sneezes. These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled into the lungs.

People are thought to be most contagious when they are most symptomatic (the sickest). Some spread might be possible before people show symptoms, and it may be possible that a person can get COVID-19 by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes. But U.S. health officials do not believe either scenario is the main way the virus spreads. 

What steps can I take to protect myself and prevent infection?

  • Wash your hands often with soap and water for at least 20 seconds, especially after going to the bathroom; before eating; and after blowing your nose, coughing, or sneezing.
  • Avoid touching your eyes, nose, and mouth.
  • Avoid close contact with people who are sick.
  • Stay home when you are sick.
  • Cover your cough or sneeze with a tissue, then throw the tissue in the trash.
  • Clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe.

What are the typical symptoms of COVID-19 Coronavirus?


For a typical patient, a fever, cough, and/or shortness of breath appear within 2-14 days after exposure. Reported illnesses have ranged from mild symptoms to severe illness and death for confirmed coronavirus disease 2019 (COVID-19) cases.

What should I do if I am sick, or exhibit symptoms?

  • If you think you have been exposed to COVID-19 and develop a fever and symptoms of respiratory illness, such as cough or difficulty breathing, call your health care provider immediately.
  • Stay home except to get medical care
  • Call ahead before visiting your doctor
  • Separate yourself from other people and animals in your home
  • Wear a facemask if you are sick
  • Cover your coughs and sneezes
  • Clean your hands often
  • Clean all “high-touch” surfaces everyday
  • Monitor your symptoms

_______



Press Updates from Senator Sullivan

OP-ED: U.S. senators, congressman address COVID-19 pandemic - March 27, 2020

Alaska Delegation Applauds HHS Grants to Prevent and Combat COVID-19 - March 26, 2020

Major Economic Relief Package Passes Senate - March 25, 2020

Sullivan Lauds Trump Administration Delay of REAL ID Deadline - March 24, 2020

Senators Call for Task Forces to Streamline Vaccine Development, Medical Supply Chain - March 24, 2020

Small Business Administration Approves Economic Injury Disaster Loans for Alaska - March 21, 2020

Sullivan, Murkowski Urge Secretary of Commerce to Investigate Russia and Saudi Arabia Excessive Dumping in Oil Markets - March 20, 2020

Senate Passes Economic Stimulus Package for COVID-19 Outbreak - March 18, 2020

Sullivan Updates Alaskans on Congressional Actions related to COVID-19 Pandemic - March 17, 2020

Sullivan Urges Dept. of Energy to Fill Strategic Petroleum Reserve with American Oil - March 16, 2020

U.S. Senators Urge Saudis to Stabilize the Global Energy Market - March 16, 2020

Sullivan Statement on the First Reported Coronavirus Case in Alaska - March 12, 2020

Coronavirus Emergency Supplemental Passes Senate - March 5, 2020 

_______

Additional Resources

CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC)

STATE OF ALASKA RESOURCES

TRAVEL

OTHER