Senators Lisa Murkowski and Dan Sullivan held an electronic town hall meeting last week to talk about the Coronavirus Aid, Relief, and Economic Security Act and what kind of aid it provides to small businesses.
In their town hall meeting, the senators focused on several key provisions. One was the Paycheck Protection Program. According to the U.S. Small Business
Administration, the program offers a loan designed to provide an incentive for small businesses to keep their workers on payroll in the coming weeks as COVID-19
continues to affect the U.S. economy. The loans, which are provided through SBA, will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent mortgage interest or utilities, according to SBA.
"One of the ideas behind that is it keeps employers and employees together," said Sullivan. "It keeps that relationship together, so we can bounce back stronger."
The senators also spoke about the Economic Injury Disaster Loan Emergency Advance. The loan program allows small businesses to apply for an emergency advance grant of up to $10,000 when applying for an Economic Injury Disaster Loan, according to SBA. Sullivan said that businesses that apply for the Economic Injury Disaster Loan, but don't qualify for it, still get the $10,000 grant, which does not have to be paid back.
Alaskans listening to the town hall meeting were also able to call in with their questions. Several of them had questions regarding unemployment benefits. According to Murkowski, Alaska's average weekly unemployment benefit is $249. The CARES Act expands unemployment benefits for a four month period, adding $600 per week on top of the state's current benefits, said Murkowski.
A tour operator from Juneau said she was concerned about the tourism industry in Southeast Alaska and projected she wouldn't potentially economically recover until next summer. Murkoski said that as the coming months continue to be uncertain, she advised the caller to utilize the provisions in the CARES Act.
"I know that's not the answer that anyone wants to hear, but it's going to be a challenge for us," said Murkowski. "It's going to be really tough on the tourism industry, and we're talking about the same level of uncertainty with our seafood industry. This is a significant hit to us right now."
Murkowski said that
fishermen were also able to apply for the small business loans and assistance. Independent contractors, gig workers and sole proprietors can also apply for the loans, said Murkowski.
While the CARES Act tries to cover everyone affected by the COVID-19 pandemic, Murkowski said there are still issues that legislators are working on. One caller asked what kind of assistance was available for his daughter who is a student at University of Alaska, Anchorage. Murkowski said any student loans she may have would be deferred for six months and would not accumulate interest. Murkowski noted that his daughter is not eligible to receive the $1,200 stimulus check as laid out in the CARES Act if he had claimed her as a
dependent. Additionally, he won't be able to collect an additional $500, because while she may be a dependent, she is likely over the age of 16.
"This is one area that has been brought up repeatedly," said Murkowski. "There's a gap here. Know that this is one of the areas that we're looking at as a future area that we have to figure out how to address it."
The one-time stimulus payout will total $1,200 for most citizens, while trickling down in size for those who make more than $75,000 a year or for a couple with a
combined income of $150,000 annually.The check amounts are dependent on the individual's 2018 or 2019 tax return. Anyone who claimed a dependent on their tax returns would receive an additional $500 if the dependent is age 16 or under. Murkowski noted that anyone who receives a social security check would automatically receive their $1,200 stimulus check without having filed their 2019 or 2018 tax return
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