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Rockville, Md.—The Transportation Alliance (TTA) is urging companies in the for-hire transportation industry to send a letter to their respective governors asking that their companies be designated "essential businesses" to help during the COVID-19 crisis.
Nine states have already declared transportation companies as "essential businesses." TTA's suggested letter to governors points out that:
- The industry continues to provide paratransit and non-emergency medical transportation (NEMT) to bring those with severe health issues to life-saving doctor appointments. Among these are daily or weekly trips to dialysis centers for people with kidney disease or chemotherapy treatment for cancer patients; the transportation of low-income citizens living in food deserts to grocery stores and pharmacies; transportation for those struggling with substance abuse and mental health issues to the care they require; and services for the disability community with our industry's ample supply of wheelchair vehicles meeting ADA requirements.
- Instead of transporting special needs students, schools are now depending on the industry to deliver subsidized meals to the homes of low-income children.
- Taxi and livery services are increasingly being called upon to offer food delivery from grocery stores and restaurants.
- Given the current trajectory of the virus, ambulance fleets could quickly be overrun with hospital trips. The transportation industry is needed to transport those patients who, while ill, do not require an ambulance.
- Larger vehicles, such as shuttles and buses, are already being used to ferry health care workers to the front lines of the coronavirus battle: our hospitals and health care facilities. These vehicles offer the ability to safely distance passengers per CDC-recommended guidelines.
- Airline and railroad crews continue to need transportation services as they move goods and people across the country.
- As transit services are reduced, the industry helps meet citizens' unscheduled transportation needs.
"In order for us to fight this invisible threat, all private sector transportation companies are at your disposal," the letter reads. "Each vehicle represents an essential piece of equipment in our state's toolbox as we work together to end this deadly virus."
TTA is sending copies of its own letters to the U.S. Department of Homeland Security and the U.S. Department of Health and Human Services seeking federal "essential business" designation for members.
TTA recently joined six other major passenger ground transportation trade associations in signing an unprecedented industry letter to President Trump and Congressional leaders outlining an eight-point plan to rescue their member companies. The request included a broad array of requests such as cash infusions, zero-interest loans, deferments on existing loans, and assistance in opening a pipeline to cleaning products, among others.
Collectively, the industry moves 3 billion passengers a year, approximately the same total number of passengers moved by the equally vital airline industry. Hundreds of thousands of drivers—most of them independent, small American companies—affiliate with transportation companies for their livelihood.
Visit thetransportationalliance.org for more information. The letter template can be found here.
[03.25.20]
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The CARES Act, a third-round stimulus package that offers $2.2 trillion in emergency relief with a focus on individuals and small businesses, was passed unanimously by the Senate on 3/25, the House on 3/27, and signed into law by President Trump. Here are the details.
No industry-specific relief
On an American Bus Association (ABA) webinar on 3/25, President & CEO Peter Pantuso informed members that there was no specific relief for the motorcoach industry in this latest round of federal aid, although he has heard from Senator Pat Toomey’s office about including the industry in the next round. So far, there has been relief for airlines, public transit, and AMTRAK, although Pantuso noted that “motorcoaches move more people in two weeks than Amtrak does all year,” according to data from the ABA Foundation. The travel-related associations are working together and will be ramping up efforts to keep the industry top of mind to members of Congress, especially when the Senate goes on recess. The fight isn’t over; make sure you are continuing to contact your representatives! Click to find contact information for your Senator or Congressperson.
Small business relief
The package did put an emphasis on small businesses, especially regarding payroll and access to emergency funding. The NLA works with Cornerstone Government Affairs, which provided the following:
- $350 billion for new Paycheck Protection Program, which would provide small businesses eight weeks of cash-flow assistance. The portion of the loan used for payroll support (employee salaries, paid sick or medical leave, and other overhead like mortgage interest, rent, and utility payments) would be forgiven if employees and salaries are retained.
- Defines eligibility as businesses, nonprofits, veterans’ organizations, and Tribal businesses up to 500 employees and includes self-employed, independent contractors, and sole proprietors.
- Additionally, $17 billion for SBA to cover six months of payments for small businesses with existing SBA loans.
- SBA loans are expected to be processed through private lenders and the income threshold is expected to be relaxed, defining small business by employees rather than income, according to the ABA. Click here for an info guide and checklist.
- Maximum loan amount is $10,000,000 or four times the average total monthly payments by the applicant for payroll, mortgage or tent, and debt obligations incurred during the one-year period before the date of the loan, whichever is less, according to Matt Daus of Windels Marx.
- Delays payment of employer payroll taxes allowing employers and self-employed individuals to defer payment of the employer share of the social security tax they otherwise are responsible for paying to the federal government with respect to their employees. The provision requires that the deferred employment tax be paid over the following two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022, according to NPR.
Unemployment
An additional $600 per week in federal funds would go to workers collecting unemployment, which is on top of their state benefits, for four months. There is also language to extend the period a person can collect for an additional 13 weeks above their state benefits (currently ranges per state from 12 to 28 weeks), which will be paid with federal monies.
Housing
The package temporarily bans rental evictions and foreclosures of those with federally backed mortgages.
According to CNN:
- Those facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days, which can be extended for four periods of 30 days each. The legislation says that servicers of federally backed mortgage loans may not begin the foreclosure process for 60 days from March 18.
- The bill also does not allow fees, penalties or additional interest to be charged as a result of delayed payments.
- Those with federally backed mortgage loans who have tenants would also not be allowed to evict tenants solely for failure to pay rent for a 120-day period, and they may not charge fees or penalties to tenants for failing to pay rent.
Stimulus checks
Those with AGIs of $75,000 or less (based off of 2018 or 2019 tax returns) will receive a one-time payment of $1,200; couples filing jointly up to $150,000 AGI will receive $2,400. It’s tiered through individual AGIs and caps at $99,000 and $198,000 for couples. Tax credits for children and under is $500 per child, although there are income restrictions on this, too.
If you have time to kill, you can read all 880 glorious pages of the Senate bill here.
[03.26.20]
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The Minority Limousine Operators of America (MLOA) held a conference call on Wednesday, March 25, to discuss news, best practices, and friendly advice in dealing with the COVID-19 crisis among its membership. MLOA President Darrell Anderson of A-National Limousine opened the call by letting the members know that board has decided to host an open call each Wednesday at 1 pm EDT, which will offer continuous discussion during the current state of affairs.
After thanking everyone for taking the time to call in, Anderson started the dialogue by providing details of the $2 trillion CARES stimulus package that was passed by Congress in the wee hours of the morning. Each adult in the U.S. will be receiving a check for $1,200 and children will receive $500. Meanwhile, the unprecedented bill will create a $367B loan program for small businesses, and establish a $500B lending fund for large industries, cities, and states. Hospitals are expected to receive $130B, while unemployment beneficiaries will be receiving an additional $600 of federal monies each week for four months. Anderson acknowledged that these funds are very much needed as the ground transportation industry has been impacted even harder than 9/11.
The next topic of discussion focused on the Small Business Administration (SBA) loans that are available to many in our industry. Anderson encouraged operators to not get discouraged by the online application, and to be diligent and patient while filling it out. When a member mentioned having difficulty with the SBA website, Bruno Teixeira of Limousine Expert suggested that everyone use Internet Explorer when logging in to the site as glitches have been reported with Chrome and other browsers.
MLOA Founder and Board Member Maurice Brewster of Mosaic Global Transportation said that he was able to finish the application in less than an hour, noting that it’s essential that applicants have their personal finances ready on their computer, along with their schedule of liability and personal/business tax returns for the past two years. Having these items handy make the loan process much easier to complete.
Brewster also raised awareness among MLOA of the Take Responsibility for Workers and Families Act included in the stimulus package. This provision guarantees that money will be allocated to minority-owned businesses. Brewster stated that he hopes to have Ruben Rodriguez, a lender involved with SBA loans, on next Wednesday’s call.
Anderson invited other board members to share advice or tips with the membership on the call. Secretary Tiffany Hinton of Motev suggested that operators be aware and mindful of local and state resources that are available to small businesses. She said that there are many loans currently available, even from Amazon and Facebook. Further, tech companies are offering free resources, citing CISCO’s free conference calling and app Headspace offering free meditation programs, which may help those suffering from anxiety. Hinton also encouraged everyone to download letter templates on the MLOA website, which operators can send to Washington representatives on behalf of the industry. Board Member Nikia Williams of Key Transportation recommended that chauffeurs and staff look into short-term unemployment benefits. Both 1st Vice President Travis Latham of Fellowship Fleet and Brewster directed the attendees to different Facebook groups.
Anderson was enthusiastic about the amount of useful material that the members offered on the call. He believes the weekly conferences will “continue to lift each other and share information.”
Visit mlooa.org for more information.
[03.25.20]