COVID-19 Policy Update
Federal Stimulus Relief
This week, the Missouri Senate returned to the Capitol to pass the supplemental budget bill which authorized $6.2 billion in federal dollars aimed at combating the coronavirus. More than $5.6 billion of the spending authorized by House Bill 2014 is funded by the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress in March. This is the same federal legislation that funds direct payments to individuals, increased unemployment insurance and loans to small businesses. Here are some examples of where the funding is going and how it will be used to help our state respond to the COVID-19 crisis:
- $1 billion to help local governments across the state;
- $1 billion in funding for the Missouri State Emergency Management Agency which can be used to purchase personal protective equipment (PPE);
- $1.8 billion for public schools and meals for kids;
- $350 million in additional funds for Medicare/Medicaid;
- $90 million to help nursing homes; and
- $20 million in funding for childcare.
Individual Stimulus Checks
The federal legislation includes a one-time payment of $1,200 for individuals who make less than $75,000 per year. Qualifying adults receive an additional $500 for each dependent child. Individuals earning more than $75,000, but less than $99,000, will receive smaller checks.
You will receive the funds the same way you received your 2019 tax refund (direct deposit or paper check). The Internal Revenue Service (IRS) will begin distributing these payments in April. Paper checks will first be issued to low-income Americans starting April 24, but some payments may take longer to reach individuals. For more information, please visit irs.gov/coronavirus.
SBA Loans and Assistance for Small Businesses
I believe the COVID-19 pandemic has had a devastating impact on small businesses in our state, and unfortunately, it has even caused people to lose their jobs. Last month, the Small Business Administration (SBA) approved the governor’s request for assistance for businesses from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan Program. Now, numerous businesses throughout Missouri have access to this loan program.
The SBA’s Economic Injury Disaster Loan Program provides targeted, low-interest disaster recovery loans for small businesses that have been severely impacted by the spread of COVID-19. The loans can be used to cover small business operating expenses after a declared disaster.
All small businesses in the U.S. are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The program also provides small businesses with working capital loans of up to $2 million to assist with the temporary loss of revenue they are experiencing due to the COVID-19 situation.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75 percent for small businesses and 2.75 percent for nonprofits. The SBA is offering loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
I believe the COVID-19 virus has taken a toll on our economy, and I believe these disaster loans offered by the SBA have the potential to provide vital support to businesses throughout our state. If your business has been affected by the COVID-19 outbreak, please visit disasterloan.sba.gov/ela/ to learn more about this important loan program.
Unemployment Benefits
I believe the spread of COVID-19 in our state has caused a lot of Missourians to be temporarily laid off, and some may have even lost their job completely. The Missouri Department of Labor has provided an information guide on their website concerning unemployment benefits and other programs available to Missourians affected by the pandemic.
The CARES Act increases unemployment insurance payments by $600 per week for four months. The Families First Coronavirus Response Act (FFCRA) requires governments and private businesses with fewer than 500 employees to provide up to two weeks of paid sick leave for those who miss work due to COVID-19, including individuals who must leave work to care for a sick family member. Businesses can claim refundable tax credits to help pay for employee sick leave. Small businesses with fewer than 50 employees may qualify for an exemption from this rule if the requirement jeopardizes the business’ ability to stay open. Please visit the U.S. Department of Labor’s website for more information about the FFCRA.
Missouri Schools Ordered to Close for Remainder of Academic Year
On April 9, the governor announced all public and charter schools are to remain closed for the remainder of the school year with the exception of providing nutrition and childcare, as outlined in the statewide stay-at-home order. Additional K-12 guidance can be found here. He also highlighted the COVID-19 response efforts of businesses around the state.
Stay-At-Home Order Issued for State and County
The State of Missouri is now under a stay-at-home order until Friday, April 24. St. Louis County and City are also under their own stay-at-home order until Wednesday, April 22. The St. Louis City and County order states that no person shall organize or attend a gathering of any number of people outside of a residence, essential business or while engaging in an essential activity. I believe this provision is slightly stricter than the statewide order, which states individuals must avoid gatherings of more than 10 people.
The City and County will re-evaluate this order on April 22. In the meantime, residents are required to stay in their homes, except for essential activities. The full list of essential activities and prohibited activities can be found in the St. Louis County Department of Public Health’s official Stay at Home Order.
CDC Recommends Wearing a Mask in Public
The Centers for Disease Control and Prevention (CDC) recommends Americans wear masks in public while engaging in essential activities. The CDC is encouraging individuals to make cloth masks in order to reserve surgical and N95 masks for health care professionals and other first responders.
Cloth face masks should fit snugly, but comfortably around the side of the face; be secured with ties or ear loops; include multiple layers of fabric; allow for unrestricted breathing; and be able to be machine washed and dried without damage to the shape of the mask. Instructions for making a cloth mask can be found on the CDC’s website.
Local Updates on COVID-19
St. Louis County officials have created a website for questions concerning COVID-19 in our community. This website includes information about what to do if you think you are sick. Residents who are experiencing symptoms of fever, cough and difficulty breathing should contact the St. Louis County Health Line at 314-615-2660, and those who believe they have been in contact with a person infected with COVID-19 should also call this number.
For more information about COVID-19 in Missouri, please visit the Department of Health and Senior Services’ website at health.mo.gov. You can also call the department’s 24-hour hotline at 877-435-8411 for any questions and concerns. For additional information about COVID-19, please visit the Centers for Diseases Control and Prevention’s website at cdc.gov.