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Paycheck protection loans and startups

As the Association of Washington Business writes, small businesses may apply for the federal Paycheck Protection Program (PPP) beginning tomorrow. These forgivable loans were funded in the third federal aid bill and are meant to be used for payroll and other costs (more details here). Startups may not be eligible for these loans, according to […]

Given the economic downturn, Gov. Inslee vetoed some provisions in the transportation budget

Gov. Inslee signed the supplemental transportation budget yesterday, but he vetoed several sections. As passed by the Legislature, the budget appropriated $10.373 billion. (That’s an increase of $538.0 million over original 2019–21 appropriations.) Transportation budget writers were working under constraints imposed by the passage of I-976 last year. The Seattle Times reported, The $10.4 billion […]

Updates on the second federal aid bill’s UI and paid sick leave provisions

The $2 trillion federal aid bill enacted last week was the third bill related to COVID-19. The second aid bill, the Families First Coronavirus Response Act, was signed March 18, 2020. It includes $1 billion in unemployment insurance administrative grants for states. The U.S. Department of Labor (DOL) has issued guidance for state workforce agencies […]

Mortgage relief and eviction prohibitions in federal aid bill and in Washington state

The federal coronavirus aid bill includes provisions that provide mortgage relief and suspend evictions and foreclosures. First, borrowers with federally-backed mortgages on residential properties with one- to four-family occupancy who are “experiencing a financial hardship due, directly or indirectly, to the COVID-19 emergency may request forbearance.” The forbearance period would last for 180 days and […]

Federal aid bill includes relief for airlines, workers

The federal coronavirus aid bill that was signed into law March 27 provides $25.0 billion for loans and loan guarantees for passenger air carriers, $4.0 billion for loans and loan guarantees for cargo air carriers, and $17.0 billion for loans and loan guarantees for “businesses critical to maintaining national security.” The duration of such loans […]

Tax provisions in federal stimulus package include individual rebates and employer payroll tax credits and deferrals

Altogether, the tax provisions in the federal stimulus package, which was passed by Congress today, are estimated by the Joint Committee on Taxation to reduce federal revenues by $605.5 billion through fiscal year 2025. Of that reduction, $292.4 billion is from the bill’s rebate for individuals. The rebate will be $1,200 for singles and $2,400 […]

More on initial claims

Yesterday I posted a chart showing, by sector, the number of claims for unemployment insurance filed between March 1 and March 21 divided by employment in the month of February. I will call this ratio the layoff rate. The chart below is a scatter plot with sectors’ layoff rates measured along the vertical axis and […]

Small business loans in the federal aid bill

Under the federal coronavirus aid bill, as passed by Congress, the Small Business Administration (SBA) would guarantee “paycheck protection loans” for businesses with fewer than 500 employees, sole proprietors, independent contractors, and the self-employed. The loans could be used for payroll costs (except the compensation of individual employees over $100,000 annually), health benefits, salaries, mortgage […]

Federal stimulus package would increase unemployment insurance benefits

As Kriss noted yesterday, initial claims for unemployment insurance (UI) during the week ending March 21 were up significantly, in both Washington and the U.S. as a whole. (Kriss also looks at claims by industry here.) And, as Rachel La Corte of the Associated Press reports, “Based on the number of claims that have come […]

With construction deemed largely non-essential, there will be a hit to state revenues

When Gov. Inslee ordered Washington residents to stay home beginning March 25, he exempted essential businesses. The Puget Sound Business Journal (PSBJ) reported that the list of essential businesses left the construction industry unsure as to whether it is included or not. Yesterday, Gov. Inslee clarified: “In general, commercial and residential construction is not authorized.” […]