WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) was joined by Sens. Roger Wicker (R-MS), Chris Van Hollen (D-MD), and Cindy Hyde-Smith (R-MS) in introducing bipartisan legislation to promote lasting economic prosperity in Black, brown and low-income communities. This bill would help unlock more equity and long-term financial capital for community development financial institutions (CDFIs). CDFIs often serve as a backbone for low-income or minority-owned businesses, which tend to have fewer banking relationships and less access to traditional forms of funding. 

“As a former entrepreneur and venture capitalist, I know that talent and ambition is not confined by income bracket or zip code. Unfortunately, access to start-up capital often is. CDFIs and MDIs do the invaluable work of bridging the gap and reaching small businesses in our most vulnerable communities – a role that became even more critical during the pandemic,” said Sen. Warner. “Despite the historic investments we were able to deliver through the emergency COVID-19 relief package, CDFIs remain in need of additional equity and capital to continue serving their communities. This legislation will create a new tax credit, helping spur important private-sector investments and allowing these community lenders to grow."

“Small businesses, including those in low-income and minority communities, are a pillar of the economy in Mississippi and across the nation,” said Sen. Wicker. “CDFIs and MDIs help support businesses, individuals, and entrepreneurs by providing access to capital and alternatives to predatory loans in low-access areas. I am glad to join my colleagues on this bipartisan measure to create an additional tax credit to support and expand this private-sector investment.”

“CDFI investments are a critical source of capital for small business growth in many Mississippi communities and around the country.  This bill would create a tax credit structure to attract greater private-sector investments in CDFIs, which would increase their ability to spur more long-term growth in disadvantaged areas,” said Sen. Hyde-Smith.

“Investing in our small businesses generates more shared prosperity in our communities and CDFIs are a key force multiplier, particularly in financing businesses and projects in economically underserved communities. This legislation will leverage long-term, private sector investments to support their good work and help them expand their efforts to support new and growing small businesses,” said Sen. Van Hollen.

This bill will help direct support to lenders that focus on underserved communities by creating a CDFI Tax Credit for private sector investors that make equity, equity-equivalent investments, or long-term patient capital available to CDFIs. The bill would benefit CDFIs of all types including bank CDFIs, credit union CDFIs, venture capital CDFIs, and CDFI loan funds, while providing institutions with the maximum flexibility and financial support they need to increase wealth in low- and moderate-income communities.

Bill text is available here. A one-pager of the bill is available here.

This legislation has the support of a number of organizations, including Community Development Bankers Association, National Association of Affordable Housing Lenders, Community Development Venture Capital Alliance, LISC, Opportunity Finance Network, CDFI Coalition, Inclusiv, and the Enterprise Community Loan Fund, among others.

“CDBA and its members strongly support the CDFI Tax Credit Investment Act.  The credit will provide an invaluable tool for leveraging private investment into underserved markets.  This will be a game changer,” said Jeannine Jacokes, Chief Executive Officer, Community Development Bankers Association.

“The CDFI Tax Credit Act is a practical, bipartisan way to marshal the long-term capital that struggling urban and rural communities need. It will create jobs, grow small businesses, and strengthen families by providing health services and child care. It's a smart investment in America's future,” said Buzz Roberts, President & CEO, National Association of Affordable Housing Lenders.

“CDVCA strongly supports the CDFI Tax Credit Investment Act.  It will give incentive for investors to provide flexible, long-term risk capital to create good jobs, productive wealth, and entrepreneurial capacity in underinvested communities throughout the nation,” said Kerwin Tesdell, President, Community Development Venture Capital Alliance.

“The Local Initiatives Support Corporation (LISC) applauds Senators Warner and Wicker for introducing the Community Development Tax Credit Act of 2022.  Community Development Financial Institutions (CDFIs) have time and time again proven their ability to leverage public and private capital to support investments in some of the most underserved communities in the country.  This tax credit, by incentivizing long term investments in CDFIs, will allow CDFIs to in turn provide longer term, lower cost loans to finance affordable housing, small businesses, homeownership and essential community facilities in their neighborhoods,” said Matt Josephs, Senior Vice President for Policy, LISC.

“OFN applauds Senators Warner and Wicker’s continued leadership in supporting community development financial institutions (CDFIs). The CDFI Tax Credit Investment Act will help drive more private capital to CDFIs offering affordable, responsible financing to low-wealth urban, rural, and Native communities across the country,” said Jennifer A. Vasiloff, Chief External Affairs Officer, Opportunity Finance Network.

“The CDFI Coalition is pleased to add its voice in strong support for the legislation sponsored by Sens. Warner and Wicker to establish a tax credit for Community Development Financial Institutions (CDFIs). CDFIs provide financial products and services in urban neighborhoods and rural areas underserved by traditional financial institutions, particularly those communities with high rates of poverty and unemployment. Throughout the last economic downturn, CDFIs served as economic shock absorbers, providing flexible and patient capital, rigorous risk management, and commitment to the projects in their communities and the sustainability of their borrowers. While traditional lenders fled economically distressed communities, CDFIs stepped in to fill the void. Since the advent of the economic crisis prompted by the pandemic, CDFIs have been on the frontlines of providing financial and technical assistance to small and minority-owned businesses. CDFIs fill a vital niche in the nation's financial services delivery system by serving communities and market sectors that conventional lenders cannot - with the ultimate goal of bringing CDFI customers into the mainstream economy as bank customers, homeowners and/or entrepreneurs. The proposed CDFI Tax Credit will provide a new avenue for CDFIs to raise capital that will be deployed to finance small businesses, construct affordable housing, and support community facilities in disadvantaged communities across the country. CDFIs leverage over $12 in private capital to every $1 in federal support, so the resources authorized by the tax credit will extend far beyond the amount authorized and help CDFIs to fill the widening credit gap encountered by economically disadvantaged communities across the country,” said Ceyl Prinster, President and CEO, Colorado Enterprise Fund and Chair of the CDFI Coalition.

“CDFI credit unions deliver credit and responsible banking services in communities long-excluded by the financial system.  Credit union lending runs the gamut from helping households access small emergency loans to meet basic needs; to repairing; to purchasing that first home or starting or expanding a small business.  Together CDFI credit unions are able to channel and recycle billions of dollars of loans in local economies across the country.  In order to grow reach and impact, these high-impact lenders need long-term equity like investment.  The proposed legislation by Senators Warner and Wicker to establish a CDFI Tax Credit is groundbreaking.  This bill will provide an incentive for private sector investors to make flexible long-term investments that enable our institutions to grow, expand their lending and increase wealth in low- and moderate-income communities,” said Cathie Mahon, President and CEO, Inclusiv. 

“Senators Warner and Wicker's innovative proposal to drive more resources into our communities is forward-thinking and much needed. CDFIs, whose missions are to create economic opportunity for all, already leverage private capital sources to develop community-centered investments and sustain the communities they serve. Unfortunately, the community need is outpacing the resources available to CDFIs. Additional investment options like the CDFI Tax Credit will be a game-changer for the industry across the country. The VA CDFI Coalition is excited by the possibilities these investments could create across Virginia and hope to see this pass,” said Leah Fremouw, Board President, VA CDFI Coalition.

“Enterprise enthusiastically supports the CDFI Tax Credit Act introduced by Senators Warner and Wicker. The legislation exponentially builds on the power of CDFIs to leverage private capital and supercharges their work to address systemic inequities in access to capital in low-income communities. Over three decades, we've invested $2.4 billion in under-served communities, and we know that CDFI investments are key to equitable development and broad-based economic growth,” said Elise Balboni, President, Enterprise Community Loan Fund.

To combat the hemorrhaging of jobs and economic opportunities during the pandemic, Sen. Warner has been a leader in Congress for CDFIs and MDIs. In July of 2020, he teamed up with then-Sen. Kamala Harris (D-CA), Sen. Cory Booker (D-NJ), and a bipartisan group of colleagues to introduce the Jobs and Neighborhood Investment Act – an effort that secured endorsements from a host of other advocacy organizations and civil rights groups. 

Sen. Warner was later able to secure provisions from the bill in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which was signed into law on December 27, 2020, providing an unprecedented $12 billion in funding for CDFIs.

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 WASHINGTON – U.S. Sen. Mark R. Warner issued the following statement after the Senate failed to advance the Small Business COVID Relief Act – legislation that would have provided additional COVID-19 relief for small businesses still dealing with the ramifications of the pandemic:

“Today, Congress failed to fulfill its promise to small business owners still reeling from the pandemic. When we established the Restaurant Revitalization Fund through the American Rescue Plan, business owners took us up on it for good reason. Many businesses were struggling to stay afloat and many of them knew that if they went out of business, they wouldn’t be able to bounce back. Unfortunately, demand surpassed available dollars. This bill would have helped Congress keep its promise and deliver aid to Virginia businesses who did everything right and applied on time. I’m disappointed that so many of my colleagues chose not to stand on the side of small businesses today, but I’m committed to continue working to get this done.”

Since the onset of the pandemic, Sen. Warner has pushed to provide small businesses and nonprofit organizations the support and relief they need. This includes fighting for the successful passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the 2020 emergency relief bill, and the American Rescue Plan (ARP).

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WASHINGTON – Today U.S. Senator Mark R. Warner (D-VA) joined Senators John Cornyn (R-TX) and Amy Klobuchar (D-MN) in a letter to Small Business Administrator Isabella Casillas Guzman urging her to disburse Shuttered Venue Operator Grant funding to struggling live entertainment venues as soon as possible. The legislation that created this program, the Save Our Stages Act, was signed into law more than six months ago, and event venues are going out of business while waiting for these grants.

They wrote, “The Save Our Stages Act, now the Shuttered Venue Operators Grant (SVOG) program, was created to prevent widespread closures of venues that have been devastated by the loss of revenue due to the COVID-19 pandemic. As supporters of the SVOG program, we urge you to take immediate action to ensure that the relief reaches eligible applicants without further delay.”

“It has been nearly six months since Congress passed the Save our Stages Act, nearly two months since the second launch of the program, and 51 days since the Small Business Administration (SBA) began receiving applications.” 

“Bureaucratic process cannot stand in the way of getting these desperately needed funds out the door.”

They were joined on the letter by Senators Bill Cassidy (R-LA), Bob Menendez (D-NJ), James Risch (R-ID), Tammy Baldwin (D-WI), Angus King (I-ME), Patty Murray (D-WA), Deb Fischer (R-NE), John Hickenlooper (D-CO), Bill Haggerty (R-TN), Mike Crapo (R-ID), Dick Durbin (D-IL), Jack Reed (D-RI), Rob Portman (R-OH), Ben Ray Luján (D-NM), John Thune (R-SD), Elizabeth Warren (D-MA), Roger Marshall (R-KS), Maggie Hassan (D-NH), Chuck Schumer (D-NY), Marsha Blackburn (R-TN), Patrick Leahy (D-VT), Jeanne Shaheen (D-NH), Thom Tillis (R-NC), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Steve Daines (R-MT), Ed Markey (D-MA), Tina Smith (D-MN), Mark Kelly (D-AZ), John Boozman (R-AR), Ron Wyden (D-OR), Mitt Romney (R-UT), Chuck Grassley (R-IA), Brian Schatz (D-HI), Sherrod Brown (D-OH), Jon Tester (D-MT), Mike Braun (R-IN), Tammy Duckworth (D-IL), Gary Peters (D-MI), Jacky Rosen (D-NV), Ted Cruz (R-TX), Marco Rubio (R-FL), Bob Casey (D-PA), Maria Cantwell (D-WA), Shelley Moore Capito (R-WV), Kyrsten Sinema (D-AZ), Debbie Stabenow (D-MI), Martin Heinrich (D-NM), Jeff Merkley (D-OR), Joe Manchin (D-WV), Alex Padilla (D-CA) and Chris Coons (D-DE).

Full text of the letter is here and below. 

June 15, 2021

The Honorable Isabella Casillas Guzman

Administrator, Small Business Administration

409 3rd Street, SW

Washington, DC 20416

Dear Administrator Guzman:

The Save Our Stages Act, now the Shuttered Venue Operators Grant (SVOG) program, was created to prevent widespread closures of venues that have been devastated by the loss of revenue due to the COVID-19 pandemic. As supporters of the SVOG program, we urge you to take immediate action to ensure that the relief reaches eligible applicants without further delay.

With each passing day, more independent businesses are forced to shutter permanently or file for bankruptcy. Landlords and banks are no longer permitting deferrals and are pressing for immediate payment of past due accounts; businesses are receiving eviction notices; mom-and-pop businesses are being forced to sell. 

It has been nearly six months since Congress passed the Save our Stages Act, nearly two months since the second launch of the program, and 51 days since the Small Business Administration (SBA) began receiving applications. We urge you to immediately take steps to ensure the funds are distributed to qualified applicants.

The SVOG program is unique, with necessary restrictions built in to ensure taxpayer funding goes only to eligible applicants in need. Under the terms of the law, the SVOG program requires the award of funding to eligible applicants who meet the simple requirements of the program. In this context, the insistence on strict compliance with competitive grant rules has created unnecessary delays in funding. Similarly, restrictions that SBA has placed on communication with grant applicants are unnecessary and have prevented the agency from providing administrative support to individual applicants that could have streamlined the application review process. Bureaucratic process cannot stand in the way of getting these desperately needed funds out the door. 

Further delays are unacceptable and would have irreversible consequences for these industries. In an effort to keep our constituents informed and ensure our small businesses receive the support they were promised, we respectfully request you provide us with the following information: 

1.       The number SVOG awards that have been approved;

2.       The number of SVOG grants that have been disbursed to recipients;

3.       The amount of SVOG funding that has been disbursed;

4.       The number of applications with holds;

5.       The number of first-priority applicants that have received an award notice;

6.       What SBA is doing to update small business owners on the status of their applications;

7.       What SBA is doing to ensure applicants are not incorrectly associated with similar-named individuals and entities on the List of Excluded Individuals/Entities (LEIE);

8.       What SBA is doing to correct false DNP designation notices sent to thousands of applicants;

9.       SBA’s justification for breaking grant awards, regardless of size, into multiple disbursements; and 

10.   SBA’s timeline for subsequent disbursements and what grantees need to do to receive them.

Sincerely,

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WASHINGTON – U.S. Senators Mark Warner, D-Va., Roger Wicker, R-Miss., Ben Cardin, D-Md., John Boozman, R-Ark., Kyrsten Sinema, D-Ariz., John Hoeven, R-N.D., Shelley Moore Capito, R-W.Va., and Cindy Hyde-Smith, R-Miss., along with U.S. Representatives Terri Sewell, D-Ala. and Jason Smith, R-Mo., today introduced the “Rural Jobs Act,” legislation that would build on the success of the New Market Tax Credit (NMTC) by bringing hundreds of millions of dollars in private investment to some of the most disadvantaged rural communities in America. 

“New Market Tax Credits have had proven success in reviving local economies and creating needed jobs in communities around the country. Unfortunately, less than one in four jobs created by this program have been in rural communities,” Senator Warner said. “This legislation will bridge this job creation gap by earmarking additional tax credits specifically for rural and underserved regions, which are suffering tremendously due to the health and economic impacts of the COVID-19 crisis.”

“Recent jobs reports have shown that our nation is on the path to recovery, but there is more progress to be made,” Senator Wicker said. “The Rural Jobs Act would help boost private investment in rural communities through expanded tax incentives. This legislation would be an important addition to the New Market Tax Credit Program, which has already spurred tens of billions of private investment in distressed communities.”  

“In Maryland, the New Markets Tax Credit has been deployed throughout our state on a diverse range of infrastructure and community development efforts. I am pleased to support this bipartisan legislation, which will further the reach of the program to low-income rural communities, creating jobs and stimulating our economy across Maryland and across America,” Senator Cardin said.

“The Rural Jobs Act builds on the momentum of the New Market Tax Credit to support job creation and economic opportunities in rural communities,” Senator Boozman said. “I’m pleased to advocate for policies that will reinvigorate investment in areas of Arkansas that need it most.”

“Boosting tax credits to encourage investment in rural Arizona communities will help create good-paying jobs and continue fueling Arizona’s economic recovery,” Senator Sinema said.

“The Rural Jobs Act will ensure that rural communities benefit from the New Market Tax Credit program, which provides tax credits to incentivize private investment in communities. Our bipartisan legislation will help to spur additional private investment in North Dakota, and help to create jobs and opportunities in rural communities across the country,” Senator Hoeven said.

“The New Markets Tax Credits program has played a vital role in helping economically distressed communities in West Virginia attract the private capital needed for economic development investments,” Senator Capito said. “The Rural Jobs Act expands upon this already powerful tool by ensuring these investments occur in the communities that need them the most. I’m proud to continue supporting this legislation that I know will go a long way in providing the boost these areas of West Virginia need.”

“By creating Rural Job Zones, more investment will be specifically targeted to areas where it is most needed to lift communities through job creation and development.  For Mississippi, the Rural Jobs Act could be a game changer, and I hope this legislation gets the attention it deserves as we work to build a strong post-pandemic economy,” Senator Hyde-Smith said.

“The New Market Tax Credit is a lifeline for rural communities across the country and right here in Alabama’s 7th District, spurring much needed investment and creating good-paying jobs in regions that need them most,” Representative Sewell said. “By expanding the NMTC, the Rural Jobs Act recognizes the promise and the potential of some of our most underserved communities, which is why I am proud to introduce this critical legislation. This is one more step toward ensuring that our rural, underserved communities like many in the Black Belt are not left behind.”

“Too often, federal programs reward big cities, leaving rural areas behind. The Rural Jobs Act targets investment to our most overlooked communities, helping to ensure opportunities for working-class Americans,” Representative Smith said.

The Rural Jobs Act would expand upon the NMTC program, which provides a modest tax incentive to private investors to invest in low-income communities. NMTC projects have spurred over $42 billion in private investment and generated over one million jobs since 2000. However, less than one in four NMTC jobs have been created in rural communities.

The Rural Jobs Act would help close the job creation gap by designating $500 million in NMTC investments for “Rural Job Zones,” which are low-income communities that have a population smaller than 50,000 inhabitants and are not adjacent to an urban area. Under this new definition, Rural Job Zones would be established in 342 out of the 435 congressional districts across the country.

The bill would also require that at least 25 percent of this new investment activity be targeted to persistent poverty counties and high migration counties. There are approximately 400 persistent poverty counties in the United States, 85 percent of which are located in non-metro or rural areas.

Read the full text of the Rural Jobs Act here.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) along with Sens. Roger Wicker (R-MS), Ben Cardin (D-MD), Shelley Capito (R-WV), Kyrsten Sinema (D-AZ), John Boozman (R-AR), John Hoeven (R-ND), and Cindy Hyde-Smith (R-MS) today reintroduced legislation to encourage greater private investment in rural and underserved areas, which have been particularly hard-hit by the COVID-19 health and economic crisis. Seeking to build on the proven success of the New Markets Tax Credit (NTMC) program, the bipartisan Rural Jobs Act would increase the flow of capital to rural areas and will serve as an important tool in U.S. economic recovery efforts. Companion legislation has also been introduced in the House of Representatives by Reps. Terri Sewell (D-AL) and Jason Smith (R-MO).

“The New Market Tax Credit program has a proven track record of reviving local economies and creating needed jobs in communities around the country. Unfortunately, less than one in four jobs created by this program have been in rural communities,” said Sen. Warner. “This legislation will bridge this job creation gap by earmarking additional tax credits specifically for rural and underserved regions, which are suffering tremendously due to the health and economic impacts of the COVID-19 crisis.” 

The NMTC program currently provides a modest tax incentive to private investors to invest in low-income communities. The Rural Jobs Act would build on the success of this program by designating, for two years, $500 million in NMTC investments for “Rural Job Zones” – low-income communities that have a population smaller than 50,000 inhabitants and are not adjacent to an urban area. Under this new definition, Rural Job Zones would be established in in 342 out of the 435 congressional districts across the country, including communities in the following Virginia localities: Accomack, Albemarle, Alleghany, Appomattox, Augusta, Bath, Bedford, Bland, Botetourt, Brunswick, Buchanan, Buckingham, Buena Vista, Campbell, Caroline, Carroll, Charlotte, Covington, Culpeper, Cumberland, Danville, Dickenson, Dinwiddie, Emporia, Essex, Fauquier, Floyd, Franklin, Frederick, Galax, Giles, Gloucester, Grayson, Greene, Greensville, Halifax, Henry, Highland, Isle of Wight, King and Queen, King William, Lee, Lexington, Louisa, Lunenburg, Madison, Martinsville, Mecklenburg, Middlesex, Montgomery, Nelson, Northampton, Northumberland, Norton, Nottoway, Orange, Page, Patrick, Pittsylvania, Prince Edward, Pulaski, Rappahannock, Richmond, Rockbridge, Rockingham, Russell, Scott, Shenandoah, Smyth, Southampton, Spotsylvania, Stafford, Surry, Sussex, Tazewell, Warren, Washington, Westmoreland, Wise, and Wythe. 

Since the creation of the NMTC, a total of 77 businesses and economic revitalization projects in Virginia have received financing, contributing to $1.5 billion in total project investments. 

“The Rural Jobs Zones initiative will drive more resources to projects such as the OnePartner/HMG Medical Center in Duffield, Virginia. Hampton Roads Ventures used the New Markets Tax Credit to finance a new facility that expanded medical services to residents in this medically underserved area. Rural Jobs Zones will benefit from billions in private sector financing for health centers, manufacturing businesses, broadband expansions, and Main Street revitalization efforts. We applaud Senator Warner for his continued commitment to rural economic development,” said Jennifer Donohue, CEO of Hampton Roads Ventures, LLC. 

“Senator Warner’s bill, the Rural Jobs Act, will create a powerful new tool for economic and community development in rural communities across Virginia and across the nation, it will lead to more quality jobs and better futures in rural America,” said Rob Goldsmith, President and CEO, People Incorporated Financial Services.

Under this legislation, Virginia would have more qualified census tracts than almost any other state, providing greater investment opportunity to support and grow businesses and create jobs in communities across the Commonwealth. The bill would also require that at least 25 percent of this new investment activity be targeted to persistent poverty counties and high-migration counties. There are approximately 400 persistent poverty counties in the United States, 85 percent of which are located in non-metro or rural areas. 

Bill text is available here. A bill summary is available here.

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WASHINGTON – Sens. Mark R. Warner and Tim Kaine (both D-VA) along with Sens. Ben Cardin and Chris Van Hollen (both D-MD) today applauded an announcement by the Biden administration that it will release an additional 22,000 H-2B temporary non-agricultural worker visas, a move that will benefit the seafood processing industries in Virginia and Maryland. The senators had previously called on the administration to make available the maximum number of congressionally-authorized H-2B visas in order to ensure that seafood processors in Virginia and Maryland have the seasonal workforce they need. Following today’s announcement, the senators released the following statement:

“As the harvest season begins on the Northern Neck and the Eastern Shore, we are pleased that seafood processors will be able to hire additional seasonal workers to keep their operations up and running. These businesses – most of them small and family-owned – are essential to the coastal economies in Virginia and Maryland, and so we appreciate that the administration listened to our requests and released these additional visas, ensuring that they will have the workforce they need as the processing season kicks up.”  

The H-2B Temporary Non-Agricultural Visa Program allows U.S. employers to hire seasonal, non-immigrant workers during peak seasons to supplement the existing American workforce. In order to be eligible for the program, employers are required to declare that there are not enough U.S. workers available to do the temporary work, as is the case with the seafood industry, which relies on H-2B workers for tough jobs such as shucking oysters and processing crabs.  

Sens. Warner, Kaine, Cardin, and Van Hollen have long advocated for the seafood processing industry – a community largely made up of rural, family-owned operations.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement today after President Joe Biden signed the American Rescue Plan into law: 

“By signing the American Rescue Plan into law, President Biden has taken an enormous step in defeating the COVID-19 pandemic and setting our nation on a clear path forward to rebuild from this crisis. Soon, this bold legislation will start delivering urgent relief for Virginians and funding for the Commonwealth’s top priorities.

“The American Rescue Plan will help our nation heal by getting vaccines into arms, expanding COVID-19 testing and tracing, and providing schools with the resources they need to reopen safely. It will also tackle the vast economic challenges related to COVID-19 by putting checks in Americans’ hands, helping small businesses keep their doors open, increasing nutrition benefits for families, assisting struggling renters and homeowners, cutting the child poverty rate in half, and providing funding for state, local, and tribal governments facing drastic budget shortfalls. This bill also includes a record $17 billion in funding to increase affordability and access to broadband – a priority I was proud to secure for the 700,000 Virginians who are still unable to access high-speed internet a year into a pandemic that has further pushed our world online.

“Like any ambitious piece of legislation, the American Rescue Plan is not perfect. I will be the first to acknowledge that the price tag is a significant one. However, this moment is too pivotal to risk doing too little and the future of our country is well worth the investment. I look forward to working to ensure that funding is distributed appropriately, programs are implemented quickly, and Virginians get the help they deserve.”

Through the American Rescue Plan, the Commonwealth of Virginia will receive, among other funding, more than $6,875,000,000 in state and local government funding; $451,000,000 in emergency rental assistance; $2,999,000,000 in education funding; $1,348,000,000 in rural transit funding; and $1,517,221,000 in urban transit funding. Additionally, more than 3,611,000 households in Virginia will benefit from individual stimulus checks. 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) released the following statement after voting for the American Rescue Plan, legislation to provide emergency relief to the American people and defeat the COVID-19 pandemic: 

“This legislation will help our country defeat COVID-19 and get back to normal. It includes desperately needed resources to get vaccines into arms; help schools reopen safely; and provide much-needed lifelines to the communities hardest-hit by this virus. 

“I will be the first to acknowledge that this bill is not perfect. I am glad that as the Senate considered this legislation, we made some important changes to target aid where it is most badly needed as millions of Americans remain out of work, state and local governments continue to lay off workers, and small businesses struggle to keep their doors open.

“I’m especially proud that I was able to work with President Biden and my colleagues to add funding to expand access to high-speed internet, which is a necessity, not a luxury, during COVID-19. The $17 billion we secured to help expand broadband infrastructure and affordability represents the largest-ever federal investment of its kind and will be a significant boost to our economy as we work to rebuild and recover from COVID-19.”

According to current estimates, there are approximately 700,000 Virginians who still lack access to high-speed internet, which has become increasingly essential for telecommuting, distance learning, telemedicine, and more amid the COVID-19 crisis. As a former governor and now in the Senate, Sen. Warner has long fought for increased access to broadband in the Commonwealth. In December, Sen. Warner negotiated and passed COVID-19 relief legislation that included $7 billion towards broadband, including $3.2 billion for an Emergency Broadband Benefit to help low-income families maintain their internet connections, $285 million to support broadband access in minority communities, and $300 million in broadband grants modeled on bipartisan provisions Sen. Warner drafted with his colleagues. Sen. Warner has also introduced comprehensive broadband infrastructure legislation to expand access to affordable high-speed internet by investing $100 billion to build high-speed broadband infrastructure in unserved and underserved communities, and has also introduced bipartisan legislation with Sens. Lindsey Graham and Tim Scott (R-SC) to establish a $10 billion Broadband Development Fund to prioritize funding for areas that currently lack service, support the deployment of advanced technologies in areas where there is the greatest need, and encourage projects that can quickly provide internet service.

According to the Federal Communications Commission (FCC), about 21 million Americans do not have access to 25/3 mbps internet, which is the FCC’s standard for high speed broadband. Of that 21 million, 16 million live in rural areas, while 5 million live in urban areas.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) today applauded an announcement by the U.S. Treasury Department opening the application process for the Emergency Capital Investment Program (ECIP), a new initiative designed to support access to capital in minority and low-income communities that have historically been excluded from the financial system and that have been the hardest-hit during the COVID-19 crisis. The funding is available as part of a record $12 billion investment to open up new credit opportunities for Black, Latino and low-income communities that Sen. Warner successfully fought to include in the $900 billion COVID-19 relief bill Congress passed in December.  

“Even before the pandemic, low-income communities and communities of color faced significant barriers in accessing credit and economic opportunity,” said Sen. Warner. “The economic crisis caused by COVID-19 has only exacerbated those inequalities. Today’s announcement by the Treasury Department is a historic step in helping underserved communities recover and emerge from this unprecedented economic downturn with more opportunities than before.”

Today’s announcement by the Treasury Department opens up $9 billion in capital for Community Development Financial Institutions (CDFIs) and minority depository institutions (MDIs) in order to expand the flow of credit into underserved, minority, and historically disadvantaged communities, helping small businesses stay afloat and expand operations while providing affordable access to credit for lower income borrowers. Surveys show that Black- and Latino-owned small businesses have been particularly hard-hit during the pandemic. Thousands of minority-owned small businesses have closed for good, in part due to difficulty securing bank loans and accessing assistance such as the Paycheck Protection Program. The Federal Reserve Bank of New York found that while overall small business ownership in the U.S. dropped 22 percent between February and April 2020, Black and Latino ownership dropped by 41 percent and 32 percent, respectively. Another recent survey revealed that almost 1 in 5 Black and Hispanic entrepreneurs expect to permanently close their doors within three months, compared to 14 percent of white small business owners. 

In order to combat the hemorrhaging of jobs and economic opportunities during the pandemic, Sen. Warner in July teamed up with then-Sen. Kamala Harris (D-CA), Sen. Cory Booker (D-NJ) and a bipartisan group of colleagues to introduce the Jobs and Neighborhood Investment Act in order to strengthen the financial institutions that serve communities of color and increase lending to minority-owned businesses and lower-income borrowers. The effort secured endorsements from the Black Economic Alliance, the NAACP, the National Bankers Association, the National Urban League, the Center for Responsible Lending and a host of other advocacy organizations and civil rights groups. Sen. Warner was later able to secure provisions from the bill in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which was signed into law on December 27, 2020, providing an unprecedented $12 billion in funding for lenders that predominantly operate in underserved communities. 

In addition to the $9 billion in funding that is part of Emergency Capital Investment Program, the Treasury Department last week opened a $1.25 billion grant program for depository and non-depository CDFIs intended to support, prepare for, and respond to the economic impact of the coronavirus crisis. In addition, the Treasury Department is expected to release $1.75 billion in funding to expand lending, grant making, and investment activity in minority communities by this summer. Together, the three programs will help minority and low-income communities weather the COVID-19 crisis and promote an equitable economic recovery in communities that have traditionally been underserved by the financial sector.  

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) today announced that minority-owned and community-based lending institutions can now apply for grants through the U.S. Treasury Department to support, prepare for, and respond to the economic impacts of the COVID-19 pandemic. The funding is available as part of a record $12 billion investment to open up new credit opportunities for Black, Latino and low-income communities that Sen. Warner successfully fought to include in the $900 billion COVID-19 relief bill Congress passed in December.  

“Even before the pandemic, low-income communities and communities of color faced significant barriers in accessing credit and economic opportunity,” said Sen. Warner. “The economic crisis caused by COVID-19 has only exacerbated those inequalities. Today’s announcement by the Treasury Department is one step in helping low-income and minority communities recover and emerge from this unprecedented economic downturn with more opportunities than before.”

Surveys show that Black- and Latino-owned small businesses have been particularly hard-hit during the pandemic. Thousands of minority-owned small businesses have closed for good, in part due to difficulty securing bank loans and accessing assistance such as the Paycheck Protection Program. The Federal Reserve Bank of New York found that while overall small business ownership in the U.S. dropped 22 percent between February and April 2020, Black and Latino ownership dropped by 41 percent and 32 percent, respectively. Another recent survey revealed that almost 1 in 5 Black and Hispanic entrepreneurs expect to permanently close their doors within three months, compared to 14 percent of white small business owners.

In order to combat the hemorrhaging of jobs and economic opportunities during the pandemic, Sen. Warner in July teamed up with then-Sen. Kamala Harris (D-CA), Sen. Cory Booker (D-NJ) and a bipartisan group of colleagues to introduce the Jobs and Neighborhood Investment Act in order to strengthen the financial institutions that serve communities of color and increase lending to minority-owned businesses and lower-income borrowers. The effort secured endorsements from the Black Economic Alliance, the NAACP, the National Bankers Association, the National Urban League, the Center for Responsible Lending and a host of other advocacy organizations and civil rights groups. Sen. Warner was later able to secure provisions from the bill in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which was signed into law on December 27, 2020, providing an unprecedented $12 billion in funding for lenders that predominantly operate in underserved communities.

Today’s announcement by the Treasury Department releases an initial tranche of $1.25 billion in grant funding for eligible community development financial institutions (CDFIs) in order to expand the flow of credit into underserved, minority, and historically disadvantaged communities, helping small businesses stay afloat and expand operations while providing affordable access to credit for lower income borrowers. Additional funding will be made available in the coming months, as part of the largest single investment into minority-owned and community-based lending institutions in the nation’s history.

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WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine applauded Senate passage of the bipartisan, bicameral spending bill to fund federal programs crucial to Virginia and keep the federal government open through 2021. The legislation also includes comprehensive measures to help Americans amid the ongoing economic and public health crisis caused by the COVID-19 pandemic. Following today’s Senate passage, the bill now heads to the President’s desk for signature. 

“For nine long months, folks waited for Congress to deliver critical relief as they watched COVID-19 further devastate their communities. Today, despite that unacceptable delay, relief is officially on its way,” said Warner. “I’m proud to have worked with a bipartisan group of colleagues to help get this legislation into shape and in the hands of House and Senate leaders. And while I know that this bill is not perfect, I’m glad to know that it will help American families weather this winter and get through the holidays.”

“While this relief should have been passed much earlier, I’m pleased to see families, small businesses, hospitals, schools, and more get the assistance they need,” Kaine said. “This legislation makes critical investments in unemployment assistance, food aid, housing assistance, and other areas to directly help those struggling amid the pandemic. Though we still have more work to do to help Americans get back on their feet, I’m relieved Congress was able to come to this bipartisan compromise and fund these priorities before the holidays.” 

The following list includes some of the priorities Warner and Kaine advocated:

• Assistance for out of work Virginians: Extends federal unemployment insurance (UI) benefits, preventing hundreds of thousands of out-of-work Virginians from losing benefits over the holidays. The senators were cosponsors of the legislation that provided the model for Pandemic Unemployment Assistance (PUA), through which more than 9 million Americans are currently receiving benefits. More recently, the Senators called on leadership to extend and add additional weeks of federal employment benefits to both PUA and the Pandemic Emergency Unemployment Compensation programs. Additionally, it gives states the option to offer additional weekly financial relief for Americans with a mix of traditional (W-2) and independent employment income who are not able to claim their full benefit, modeled after Senator Warner’s legislation.

• Stimulus checks: Includes a stimulus payment for low- and middle-income Americans; with $600 for individual filers and $1,200 for joint filers, with an additional $600 for each qualifying child in the household. Early in the crisis, Senator Kaine called for stimulus efforts to include direct payments to households. 

• Vaccines: Includes over $19 billion for vaccines and therapeutics and an additional $8.75 billion to support vaccine distribution, particularly for states and localities, to slow the spread of the pandemic and take a step towards a future where COVID-19 is managed.

• Emergency housing aid and protections: Creates a new $25 billion emergency rental assistance fund to prevent evictions during the pandemic, which will be delivered through state and local governments. Earlier this year, the Senators joined their colleagues in introducing legislation to provide emergency housing assistance for those facing potential evictions. The bill will also extend the CDC eviction moratorium to allow time for implementing the emergency housing aid.

• Relief for hard-hit small businesses and nonprofits: Provides targeted relief for small businesses struggling with the effects of the pandemic. This includes a second round of Paycheck Protection Program (PPP) forgivable loans for small businesses and nonprofits that experienced a substantial revenue decline in 2020, as well as other funds for small business relief. The Small Business Administration (SBA) is directed to provide guidance to ensure priority access for underserved communities, such as minority-owned businesses. The bill also includes grants for small businesses and nonprofits in sectors likely to continue to see substantial drops in revenue in 2021, particularly in the live entertainment sector. This aid will ensure that Virginia’s small businesses are able to stay afloat during the pandemic, keep workers on payroll, and return to job creation as COVID-19 is controlled. The Senators have been strong supporters of providing relief to small businesses, cosponsoring the Heroes Small Business Lifeline Act, which included many of the provisions in the final bill, and the Save our Stages Act, on which the live entertainment grants are modeled. 

• Targeted relief for underserved communities: Provides the largest single investment in our country's history for minority-owned and community-based lending institutions. Largely drawn from Senator Warner’s Jobs and Neighborhood Investment Act, the provision provides $12 billion to community development financial institutions (CDFIs) and minority depository institutions (MDIs) to build capital and unlock affordable access to credit for underserved and minority neighborhoods, which have been particularly hard-hit by COVID-19.

• Education Stabilization Fund: Provides $82 billion to provide emergency support to K-12 schools and higher education institutions. The legislation includes provisions of Kaine’s Coronavirus Relief Flexibility for Students and Institutions Act that allow colleges to use emergency stabilization funds to cover lost revenue and better target funds designated for colleges hardest hit by COVID-19 by requiring an application to demonstrate need. 

• Broadband: Includes $7 billion towards broadband, including $3.2 billion for an Emergency Broadband Benefit to help low-income families maintain their internet connections, $285 million to support broadband access in minority communities, and $300 million in broadband grants modeled on provisions Senator Warner drafted with bipartisan Senators. Additionally, the bill includes an extension of the deadline to use Coronavirus Relief Funds so that state and localities interested in using the money for broadband expansion have more time, as Senator Warner called for.

• Support for child care providers and families: Includes $10 billion in flexible funding for the Child Care & Development Block Grant (CCDBG) to help support child care providers and ensure that working parents have access to child care during the pandemic. The bill also includes $250 million for Head Start programs.

• Public health data modernization: Includes Senator Kaine’s Saving Lives Through Better Data Act, which will improve the nation’s public health data systems at CDC and through grants to state and local health departments to expand and modernize their systems, promoting more seamless communication, which can save lives when we’re faced with public health threats such as COVID-19. The omnibus authorizes $100 million for each of fiscal years 2021 through 2025.

• Telehealth: Includes Senator Kaine and Senator Schatz’s Expanding Capacity for Health Outcomes (ECHO) Act of 2019, which creates a grant program to evaluate, develop, and expand the use of distance health education models such as ECHO to increase access to specialty care in rural and medically underserved populations. The omnibus authorizes $10 million for each of fiscal years 2022 through 2026. The funding bill also permanently expands coverage of and payment for telehealth to treat mental health care, which is in line with Senator Warner’s CONNECT for Health Act, which Senator Kaine is a cosponsor.

• Ends surprise billing: Includes a provision to end surprise billing, something Senators Warner and Kaine have long advocated for. 

• U.S. Postal Service: Converts the CARES Act $10 billion loan into direct funding for USPS without requiring repayment. These funds will be used for operational costs and other expenses resulting from the COVID-19 pandemic. Senator Warner is a cosponsor of the Postal Service Emergency Assistance Act, which would provide USPS with significant direct funding. 

• Veterans: Provides $104.4 billion in funding for the VA, an increase of $12.5 billion over FY20 levels. This funding increase provides $2.7 billion more than the previous fiscal year for health care delivered at VA facilities nationwide. The bill provides robust funding in several areas important for Virginia veterans, including $815 million for critical VA Medical and Prosthetic research, an increase of $1.18 billion over FY20 levels for electronic health record modernization, nearly $2 billon in support of programs to prevent veteran homelessness and $312.6 million for suicide prevention.

• Infrastructure: Includes funding for key projects that were championed by Warner and Kaine to benefit Virginia’s infrastructure:

• Includes a provision pushed for by Senators Warner and Kaine to allow for the construction of a new Long Bridge on the Potomac River, which will double the capacity of the rail crossing between Virginia and D.C. The current two-track Long Bridge is the only rail bridge connecting Virginia to Washington, D.C., and it is at 98 percent capacity during peak hours, which means it is one of the most significant rail chokepoints along the East Coast. The new Long Bridge program will double the capacity of the Potomac River rail crossing by adding a second two-track bridge adjacent to the existing bridge and including a new bike-pedestrian shared use path spanning the George Washington Memorial Parkway and the Potomac River. Senators Warner and Kaine introduced the Long Bridge Act of 2020 in August to allow for this construction.
• Includes the full federal funding of $150 million for the Washington Metropolitan Area Transit Authority (WMATA) to fund critical capital investment and safety projects. In addition, the bill provides $14 billion in emergency relief for public transit agencies to continue operations during the pandemic, ensuring access to transportation for frontline workers and civil servants.
• Includes a one year extension of Community Development Block Grant funds to the City of Norfolk and other localities to build climate resilient infrastructure projects. Senators Kaine and Warner joined Senator John Hoeven in introducing S.4017 in June, which would also have provided an extension for the NDRC program.
• Includes $87.5 million for the Chesapeake Bay Program—an increase of $2.5 million from FY 2020. The Chesapeake Bay Program coordinates Chesapeake Bay watershed restoration and protection efforts, and the majority of its funds are passed through to the states and local communities for on-the-ground restoration.
• Authorizes federal funds to cover 65% of the costs associated with construction projects to address close to $1.5 billion of flood control needs in the City of Norfolk.
• Grants a critical cost adjustment to allow work to continue on the Deep Creek Bridge inChesapeake to address traffic concerns.
• Authorizes over $102.7 million in federal funds for construction of the North Landing BridgeReplacement project.
• Provides up to $9 million for the Federal Aviation Administration to continue its remote tower system pilot program at smaller airports, including the Remote Air Traffic Control Tower at Leesburg Executive Airport.

• Great American Outdoors Act: With Senator Warner’s Great American Outdoors Act now law, the FY21 omnibus affirms funding for several deferred maintenance projects in Virginia:
  • George Washington Memorial Parkway – A $207 million project to restore 7.6 miles of northern section of the GW Parkway and implement critical safety measures. The Senators have long advocated for federal funding for this project for several years as seen here and here.
  • Shenandoah National Park – A $27 million project to pave and restore nearly 50 miles of Skyline Drive and various overlooks. Shenandoah will also receive nearly $3.5 million to remove unnecessary buildings and restore greenspace within the park.
  • Colonial National Historical Park – A $16.5 million project to restore nearly 5 miles of shoreline along the York River.

• FBI Headquarters: Provides no funding for a new FBI headquarters and includes language that encourages General Services Administration (GSA) to provide a new prospectus, particularly after the Trump Administration abruptly abandoned plans to develop a new campus headquarters for the FBI. Earlier this year, Senators Warner and Kaine opposed an attempt in an earlier Republican COVID-19 relief package that would have provided $1.75 billion for construction of a new FBI HQ in its current downtown D.C. location.  

• Miners’ Benefits: Extends the funding for the Black Lung Disability Trust Fund until the end of 2021 by extending the tax on mining companies that helps fund the program. Both Kaine and Warner introduced the Black Lung Benefits Disability Trust Fund Solvency Act calling on Congress to extend the excise tax through the end of 2030.

• Shipbuilding & MILCON funding: Provides $23.27 billion for shipbuilding for 10 battle force ships including full funding for a second Virginia-class submarine, which Senators Warner and Kaine personally advocated for. The bill also appropriates $237 million for 6 MILCON projects in Virginia, including:
  • Humphreys Engineer Center, Training Support Facility (Army) - $51m
  • Norfolk, E-2D Training Facility (Navy) - $30.4m
  • Norfolk, Corrosion Control and Paint Facility (Navy) - $17.671m
  • Joint Base Langley-Eustis, Access Control Point Main Gate with Land Acquisition (Air Force) - $19.5m
  • Joint Expeditionary Base Little Creek-Story, Operations Facility and Command Center (Def-Wide) - $54.5m
  • JEB Little Creek-Story, NSWG Facilities (Def-Wide) - $58m
• Federal contractors: Senators Warner and Kaine also pushed to extend a provision from CARES (3610), which allows contractual adjustments for a paid leave program, allowing contractors to keep employees on the payroll if federal facilities close due to the pandemic – an important provision for our defense industrial base and cleared national security workforce. 

• Foster care and homeless youth: Includes key provisions of Senator Kaine’s bill with Senator Murray and Senator Portman, the Higher Education Access and Success for Homeless and Foster Youth Act, to remove barriers to financial aid for students experiencing homelessness or students formerly in foster care by easing the application and determination for becoming eligible for aid. The bill also includes language allowing foster youth to remain in the system until October 1, 2021, regardless of their age—a move that Senators Warner and Kaine called for in a recent letter to the administration.

• Funds Childhood Disease Research: Provides $12.6 million for the Gabriella Miller Kids First Pediatric Research Program to conduct pediatric cancer and disease research. The Senators worked to enact the legislation authorizing this program, named for 10-year-old Gabriella Miller of Loudoun County, who passed away from cancer in October of 2013.

• Supporting working students and families: Includes key provisions of Senator Kaine’s bill with Senator Baldwin, the Working Students Act, to reduce the “work penalty” that many students who work while attending school face. Currently, students who work while attending school often are eligible for less financial aid due to their work income. The appropriations bill enacts a 35% increase for working students and 20% increase for families to the income protection allowance (IPA), shielding more of their income from reducing their financial aid.

• Student Loan Repayment: Extends an important change to existing tax policy allowing employers to use pre-tax dollars to help pay down employees’ student debt until 2025 – a provision modeled after Senator Warner’s bipartisan Employer Participation in Repayment Act to help more than 44 million Americans with student loan debt.

• Ashanti Alert: Includes $1 million in federal funding to help with the nationwide implementation of the Ashanti Alert system. Following the abduction of 19-year old Ashanti Billie, who did not meet the criteria for an Amber or Silver Alert, Senator Warner secured unanimous passage of this national alert system through the Senate on December 6, 2018, and has been a leader in the fight to implement the Ashanti Alert nationwide ever since.

• Nutrition: Provides $13 billion in nutrition assistance, including a 15 percent increase in SNAP benefits through June 30, 2021 for all SNAP participants. Excludes unemployment compensation from being counted as income for the purposes of calculating SNAP benefits and eligibility. Provides $400 million for food banks through The Emergency Food Assistance Program.

• Farmers: Provides $13 billion for direct payments, purchases, and loans to producers who have suffered losses due to the pandemic, including funds to support the food supply chain through food purchases, donations to food banks, and support for local food systems. Additionally, it includes $5 billion for supplemental payments to row crop producers; $3 billion for supplemental payments to cattle producers and contract growers of livestock and poultry, dairy farmers, and producers who were forced to euthanize livestock or poultry; $225 million for producers of specialty crops; and $1.5 billion to purchase food for distribution to those in need.

• Timber Harvesting/Hauling: Provides up to $200 million to support timber harvesting and timber hauling businesses impacted by COVID-19. 

• Dairy: Provides up to $400 million for a Dairy Product Donation Program, modeled after the 2018 Farm Bill pilot program to facilitate the donation of dairy products and minimize food waste. 

• Textiles: Allows USDA to make payments to users of upland cotton and extra-long staple cotton.

• Fisheries: Provides $300 million in assistance to help fisheries mitigate COVID-19 related impacts. 

• Water Utility Bill Assistance: Provides $638 million for a new program to help low-income families cover the costs of drinking water and wastewater utility bills by making funds available to states and Tribes. These localities will provide dollars to owners or operators of public water systems or treatment works to reduce arrearages and rates for low-income households.

• Appalachian Regional Commission: Includes a record $180 million for the Appalachian Regional Commission, an increase of $5 million from FY20.

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WASHINGTON, D.C. – U.S. Senators Mark R. Warner and Tim Kaine cosponsored the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act of 2020, legislation that would establish a $120 billion revitalization fund to help independent restaurants deal with the long-term structural challenges facing the industry because of COVID-19 and support the reemployment of 11 million workers.

“Virginia’s independent restaurants have been especially hurt by the coronavirus emergency and require much-needed relief,” the Senators said. “This bill can help save restaurants across the Commonwealth by offering the critical assistance needed to cover costs of operations and supporting staff. We’re glad this effort has bipartisan support to help millions of restaurants from closing their doors for good.”

The Bureau of Labor Statistics estimates that the restaurant industry has lost over 6.1 million jobs – the most of any industry and double the figure from the next most affected industry. Without further action from Congress, over 11 million independent restaurant workers are at risk of permanently losing their jobs. Restaurants are facing months of massive revenue losses because of social distancing, rising costs of supplies, new expenses for personal protective equipment, and a decrease in the public’s willingness to dine out.

The National Restaurant Association estimates that more than 237,000 restaurant employees in Virginia have been laid off or furloughed since March – representing at least 78 percent of the 305,000 employees that were working at Virginia’s eating and drinking places in February.

The Senate bill was led by Senators Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ) and was cosponsored by Senators Lindsey Graham (R-SC), Chris Coons (D-DE), Doug Jones (D-AL), Cory Gardner (R-CO), Thom Tillis (R-NC), Bob Casey (D-PA), Jeff Merkley (D-OR), and Catherine Cortez-Masto (D-NV).

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WASHINGTON - U.S. Sen. Mark R. Warner (D-VA) joined Senate Democratic Leader Chuck Schumer (D-NY), Senate Committee on Small Business and Entrepreneurship Ranking Member Ben Cardin (D-MD), Senate Committee on Banking, Housing, and Urban Affairs Ranking Member Sherrod Brown (D-OH), Senator Jeanne Shaheen (D-NH), and all 47 Senate Democrats in a letter to Treasury Secretary Steven Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza calling for urgently needed improvements to streamline and simplify the Paycheck Protection Program (PPP) loan forgiveness application process to ensure the smallest and most underserved businesses are able to fully take advantage of the program.

Senate Democrats write that small businesses and lenders alike have voiced concerns about the complexity and high cost-burden of the forgiveness application process for PPP loans, particularly for very small and underserved businesses, including microbusinesses, sole proprietorships, rural, and minority-owned small businesses. In addition, the complex process contributes to barriers to entry for new borrowers and could heighten existing hurdles to inclusion, with recent survey data indicating that close to a fifth of minority business owners did not apply for assistance from programs like PPP because they saw the application process to be overly cumbersome and long.

To avoid the chaos that borrowers and lenders experienced in the early weeks of the PPP program, Senate Democrats request that the Administration streamline the forgiveness application now, especially for smaller loans, as many borrowers near the time to apply for forgiveness, and provide adequate resources to ensure a smooth and reliable process.

Senate Democrats’ letter to Secretary and Mnuchin and Administrator Carranza can be found here and below: 

June 12, 2020

The Honorable Steven Mnuchin

Secretary of the Treasury

U.S. Department of the Treasury

1500 Pennsylvania Avenue NW

Washington, D.C. 20220         

The Honorable Jovita Carranza

Administrator

U.S. Small Business Administration

409 3rd Street SW

Washington, D.C. 20416

Dear Secretary Mnuchin and Administrator Carranza:

The Paycheck Protection Program (PPP) represents the largest small business relief effort in our nation’s history. We were pleased to have passed into law the Paycheck Protection Program Flexibility Act, which builds upon and improves this vital program. While these fixes are an important step forward in making PPP work better for small businesses and nonprofits, much work remains to see the program work more efficiently and fairly, particularly for small dollar borrowers. As the program enters its next phase and borrowers begin to seek forgiveness of their loans, there is an immediate need for significant improvements to the forgiveness application process, which is tremendously cumbersome and overly complex, especially for very small businesses, sole proprietors, and underserved borrowers. 

We appreciate your acknowledgment in the recent Senate Small Business Committee hearing that the Administration will be updating the forgiveness form to reflect the critical changes required by the recently passed bill, and that this rewrite is an opportunity to improve the forgiveness process. We want to encourage the Small Business Administration and the Department of Treasury to significantly streamline and simplify the forgiveness process to ensure the smallest and most underserved businesses are able to fully take advantage of the program without having to make inordinate investments of time or limited resources.   

Since the release of the forgiveness form and instructions a few weeks ago, we have heard significant concerns from small businesses and lenders alike about the complexity of the process especially for the smallest businesses. The 11-page form that must be completed to secure forgiveness is especially burdensome, time-consuming, and costly for very small and underserved businesses, including microbusinesses, sole proprietorships, rural, and minority-owned small businesses. We are especially concerned that so many of these very small and underserved businesses will feel compelled to hire accountants and attorneys to complete the forgiveness form in a manner that provides comfort that the loans will be forgiven. This is not just an issue for existing borrowers. It contributes to already existing barriers to entry for new borrowers. For example, recent survey data indicated that close to a fifth of minority business owners did not even try to apply for assistance from programs like PPP that they could have greatly benefited from because they saw the application process to be too difficult and long.  The lengthy and complicated forgiveness form only adds to the already significant hurdles for inclusion of all small businesses in the program.  

While we understand clearly the need to uphold accountability and ensure taxpayer money is properly spent, this process should not be so complex so as to require already struggling small businesses to spend significant resources on services to complete a government form or worry that if they do not, their application will be rejected. To avoid the chaos that borrowers and lenders experienced in the early weeks of this program, we request that the Administration consider streamlining the forgiveness application, especially for smaller loans, and provide adequate resources to ensure a smooth and reliable process that small businesses and nonprofits can have faith in. We also request that before the Administration releases a final, updated form that you engage directly with Congress for input to ensure the form upholds Congressional intent within the CARES Act and follows through on the requests within this letter. 

To achieve these results, we request the Administration consider the following:

• Create a process for streamlined forgiveness for low-dollar loan amounts. This should include an easy-to-use form that requires a simple attestation on fund use and minimal documentation. This would significantly reduce burdens and provide as much flexibility as possible for very small businesses seeking to access forgiveness. 

• Issue guidance providing lenders with some form of reasonable safe harbor protection when certifications are made by borrowers in the forgiveness process for low-dollar loan amounts. 

• Develop a comprehensive suite of approved online tools and resources to help small businesses and nonprofits navigate the forgiveness process, including “how to” videos, online reporting calculators that have the validation of the government, and easy-to-use materials to empower resource partners like the Small Business Development Centers, Women’s Business Centers, and Minority Business Development Agency’s Business Centers in assisting with the completion of the forgiveness form.  

• Stand up a well-staffed help line for borrowers or lenders to easily reach someone to talk through any challenges they encounter with the forgiveness forms or process.  

The need for the Administration to update and revise the forgiveness form to reflect the changes included in the recently passed bill and create a more simplified process also presents an opportunity to collect additional information from program participants that complete the forgiveness process. We were pleased that the initial form includes an option for applicants to provide demographic data, for example. An updated, streamlined forgiveness form should continue to collect this information, ideally including a demographic reporting section on the first page to ensure as much information as possible is gathered to provide much more clarity on whether PPP assistance has reached communities of color. 

In this public health and economic emergency, we must do all we can to make sure our small businesses have the support and assistance they need to weather the crisis. Small businesses should not need to spend precious resources on an accountant or attorneys to finalize their forgiveness application. The government should simplify the process such that these experts are not necessary or assist in providing this much-needed support. That must be especially the case for our very small and underserved businesses, including in communities of color, that oftentimes lack the resources of other businesses and in many cases, have faced long-standing economic and process fairness challenges even before COVID-19. We have a chance to improve the PPP forgiveness process now for these small businesses to ensure the program works as intended. 

We appreciate your immediate attention to this request and thank you for your continued work to mitigate the impact that this public health crisis is having on the backbone of our economy, our American small businesses. 

Sincerely,

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WASHINGTON – U.S. Sens. Mark R. Warner (D-VA), Bernie Sanders (I-VT), Doug Jones (D-AL) and Richard Blumenthal (D-CT) today introduced the Paycheck Security Act to cover the wages and benefits of employees of affected businesses and non-profits until the economic and public health crisis is resolved. 

“Without aggressive action to help workers keep their jobs and businesses stay open, we risk an economic disaster that could take decades to repair,” said Sen. Warner. “Right now nearly 39 million Americans are out of work due to the coronavirus. This is hitting working class folks particularly hard, with 40 percent of all workers making under $40,000 out of work right now. We need to be thinking big and helping people who have lost their jobs. Our proposal will create a national paycheck security program for American workers and help businesses keep their lights on during the darkest days of this crisis. Paycheck security means the federal government would help cover the payroll expenses for rank-and-file workers who have been furloughed or laid off because of the coronavirus, so that families can avert financial calamity and workers can stay connected to employers and health benefits while we get through this crisis.” 

“This unprecedented crisis demands an unprecedented legislative response,” said Sen. Sanders. “We cannot continue to allow tens of millions of Americans to lose their jobs, income, and health insurance during this horrific pandemic.  In order to avoid another Great Depression, Congress must act boldly and aggressively to ensure that every American worker receives their paycheck and health insurance until this crisis is over.  The Paycheck Security Act we are introducing today will provide the urgent financial assistance that working families and small businesses desperately need to pay their bills and make ends meet.”

“As Americans continue to struggle through the health and economic crisis we’re facing, Congress needs to continue to provide relief to workers and small businesses – the lifeblood of our economy. The Paycheck Security Act would direct economic relief to American workers who are suffering by helping employers maintain their payroll,” Sen. Jones said. “Our legislation is exactly the type of big, bold approach that we need to take, given the scale of this crisis. If we can provide the resources that businesses need to tide them over until it is safe to re-open, we can keep more folks safe and help keep workers on the payroll and receiving vital benefits like health insurance. I urge my colleagues on both sides of the aisle to include this in the next relief package, so that we can continue to help the people in Alabama and throughout our country who need it most.” 

“Instead of allowing businesses to go into free fall and trying to pick up the pieces later, we’re proposing a guardrail at the edge of the precipice. Our plan gives workers the steady comfort of a consistent paycheck from an employer they can go back to when the crisis abates. And we’re offering business the ability to hold onto those workers, so they can start up again as easily as possible. If we fail to take aggressive relief measures now, we’ll kneecap our future recovery,” said Sen. Blumenthal.

Since the COVID-19 pandemic began, nearly 39 million workers have filed for unemployment. More than 20 million people lost their jobs in the month of April alone, the most in a single month on record. An estimated 27 million people have already lost their employer-provided health insurance coverage, and millions more could lose coverage before this crisis is over. The unemployment rate is likely close to 20 percent, and could exceed the depths of the Great Depression in the coming months. 

The pandemic has also devastated small businesses and sole proprietors. A recent study found that more than 100,000 small businesses have already closed permanently as a result of the health and economic crisis.  Another recent surveyshowed that 52 percent of small businesses expect to go out of business within the next six months.  Allowing millions of small and independent businesses to fail will have a devastating impact on the economy and will make the road to recovery longer and harder.

Other countries have avoided the massive job losses seen in the United States primarily because their governments have adopted programs to keep workers on payroll and attached to their employers until this crisis is over. ThePaycheck Security Act would avert mass layoffs, stem catastrophic unemployment levels and prevent irreversible business losses with a refundable tax credit big enough ($90,000 annually per employee) to rehire and pay laid off and furloughed workers and restore their health care benefits. It will also provide small and mid-sized businesses with the funds they need to pay for rent, mortgages, utilities and other operating costs until they can reopen safely and sales begin to recover.

“I am supportive of this strong proposal which builds upon the Paycheck Protection Program and Employee Retention Tax Credit,” said Senate Democratic Leader Chuck Schumer (D-NY).

“Our country is facing a once-in-a-lifetime economic crisis with nearly 1 in 5 Americans unemployed. The response must meet the moment. In addition to significantly expanding payroll support, we must support small businesses that are being crushed and need cash to cover bills and replace inventory when they reopen. Without additional help many small businesses will not survive this crisis and it will take far longer to climb out of this economic ditch. This legislation would keep more employees on payroll and deliver critical help to the smallest, most vulnerable businesses,” said Finance Committee Ranking Member Sen. Ron Wyden (D-OR).

A more extensive summary of the bill is available here. Bill text can be found here. 

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) urged Senate leaders to ensure that nonprofit organizations like regional chambers of commerce, state restaurant associations, and groups representing law enforcement are able to receive the financial relief they need during the novel coronavirus (COVID-19) crisis. In a letter, the Senators asked Senate leaders and leaders on the Committee on Small Business and Entrepreneurship to expand eligibility for the Paycheck Protection Program (PPP), which currently excludes worthy non-profits that are listed under section 501(c)(6) of the Internal Revenue Code.

“We’ve heard from many 501(c)(6)s that have been impacted by COVID-19 and are concerned that they will be unable to carry out their missions,” wrote the Senators. “Many 501(c)(6)s are struggling because of significant declines or uncertainty in their membership dues resulting from COVID-19, and many have had to cancel major events that they rely on for funding. 

They continued, “Throughout this pandemic, Congress has recognized that a whole of society effort is needed to combat COVID-19 and to mitigate its devastating economic impacts. Local chambers, for example, have been valuable partners in helping small business owners get up-to-date information about the assistance programs passed under the CARES Act. Law enforcement associations here in Virginia have provided vital information and training for their members related to COVID-19 as they keep our fellow citizens safe. Education associations have supported teachers and school leaders with webinars and other professional development resources as they abruptly transitioned to serving students through remote instruction.”

Virginia’s significant number of 501(c)(6) organizations include regional chambers of commerce, tourism and hospitality associations, medical associations, certified public accountant societies, state legal societies, state restaurant associations, groups representing law enforcement, among many others. According to some estimates, the Commonwealth has the third highest number of 501(c)(6) employees across the nation.

In their letter, the Senators also highlighted the essential role that many of these organizations are fulfilling during this challenging crisis. Specifically, the Senators requested that this PPP expansion be eligible for 501(c)(6) organizations that do not engage in substantial federal campaign or lobbying activities and can demonstrate economic hardship.

Text of the letter is available here or below.

Dear Majority Leader McConnell, Minority Leader Schumer, Chairman Rubio, and Ranking Member Cardin:

With your leadership, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) to create the Paycheck Protection Program (PPP), a powerful program to support small businesses and some non-profits as they deal with the impacts of the COVID-19 pandemic. However, we have concerns that PPP’s eligibility criteria have shut out some worthy non-profits that are listed under section 501(c)(6) of the Internal Revenue Code. 

We’ve heard from many 501(c)(6)s that have been impacted by COVID-19 and are concerned that they will be unable to carry out their missions. Many 501(c)(6)s are struggling because of significant declines or uncertainty in their membership dues resulting from COVID-19, and many have had to cancel major events that they rely on for funding. We’re hopeful that as you consider modifications to the PPP, you will expand the program to include 501(c)(6) non-profits that do not engage in substantial federal campaign or lobbying activities and can demonstrate economic hardship. 

501(c)(6) organizations include regional chambers of commerce, tourism and hospitality associations, medical associations, certified public accountant societies, state legal societies, state restaurant associations, groups representing law enforcement, among many others. Many of these 501(c)(6) organizations are filling an essential role on the front lines of our nation’s COVID-19 response, providing their members with services and guidance necessary to help them through this challenging time. 

The Commonwealth of Virginia has a significant number of 501(c)(6) organizations and Virginians employed by them. According to some estimates, Virginia has the third most 501(c)(6) employees in the country. We’re proud of the work these Virginians do to support their communities and local businesses and do not believe they should be excluded from the PPP, which might be the deciding factor in whether their organization can keep its doors open. 

Throughout this pandemic, Congress has recognized that a whole of society effort is needed to combat COVID-19 and to mitigate its devastating economic impacts. Local chambers, for example, have been valuable partners in helping small business owners get up-to-date information about the assistance programs passed under the CARES Act. Law enforcement associations here in Virginia have provided vital information and training for their members related to COVID-19 as they keep our fellow citizens safe. Education associations have supported teachers and school leaders with webinars and other professional development resources as they abruptly transitioned to serving students through remote instruction.

Thank you for taking this important consideration into account as you work to help our economy and communities cope with the economic impacts of COVID-19. We look forward to continuing our work together as we pursue bipartisan approaches to managing and overcoming this crisis. 

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