October 29, 2020

Contacts

One Voice Washington Office:
 
410 First Street SE
Suite 200
Washington, DC 20003
info@metalworkingadvocate.org
 
Press:
 
Paul Nathanson
2001 M Street NW
Suite 900
Washington, DC 20036
media@metalworkingadvocate.org

 

 

COVID-19

Message to Congress - Congress should take immediate action and make changes vital changes needed to the Paycheck Protection Program.

Access to capital and other incentives to restart and recover business activities is essential.

Support onshoring and reshoring initiatives to encourage investment in American manufacturing, workers, and supply chains.

 

The global pandemic is a crisis unlike any other in recent memory. Millions of manufacturers are deemed Essential Critical Infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) and have remained open throughout the national health emergency, many to produce vital equipment and devices needed in the battle against COVID-19. 

However, according to a July 8-16, 2020 survey, 37% of One Voice members report revenues are 26-50% lower than pre-pandemic levels with one in three manufacturers not expecting a “return to normal” for another 1-2 years or longer. Manufacturers need support to help restart and strengthen the industry.

Small businesses account for 48% of American jobs and account for 44% of U.S. economic activity. While smaller firms are vital to the U.S. economy, many have little or no financial cushion to carry them through these times. Since the launch of the Paycheck Protection Program (PPP), 90% of One Voice members have reported receiving a loan to help address this very issue. Of those receiving a loan, 85% report the PPP has allowed the company to retain employees they would otherwise furlough or let go. As PPP funds run out and if revenues do not improve, 47% will furlough or let go employees by November. Changes are needed to this vital program to ensure that can remain open and continue to pay and support employees.

To help support the recovery of American manufacturers, Congress should:

PPP Loan Changes

  • Allow the deductibility of wages, rent, utilities as expenses under IRC 265;
  • Expand eligible costs to include payments to suppliers;
  • Enhance the Employee Retention Credit, lower the revenue loss test to 25% and permit recipients of the PPP to claim the credit;
  • Make 501(c)(6) non-profit trade associations eligible for PPP loans;
  • Allow borrowers to take a second PPP loan with a 25% revenue loss test 
  • Change revenue loss test period from 1Q or 2Q to any 2020 8-week period.

Restarting U.S. Manufacturing

  • Create government guaranteed long-term, low-interest loans: uses include payroll, equipment, tools, materials, R&D, facility improvements, etc.; 
  • Make permanent 100% bonus depreciation expensing for qualified property;
  • Make General Business Credits Refundable (General Business Credits include: R&D, investment, work opportunity, renewable, new markets, etc.);
  • Establish business liability protection for employers who follow OSHA/CDC guidelines specific to their industry;
  • 6.2% employer payroll tax holiday for March-December 2020.

Investing in U.S. Manufacturing

  • Create a new tax credit to support the onshoring of manufacturing activities, such as moving operations to the U.S. or investing in capital equipment, to support the purchase of property, facilities and more;
  • Provide tax incentives to help companies recruit and train the skilled workforce needed to expand modern manufacturing in the U.S.;
  • Increase funding for WIOA and Career and Technical Education programs;
  • Pass the College Transparency Act to inform students about career options;
  • Pass the Upskilling and Retraining Assistance Act to temporarily increase the employer tax credit for assisting employees with education costs;
  • Investing in quality short-term training— including online training to allow for social distancing—in key digital and emerging skills.

 

For More info on COVID-19 from One Voice: