IMPACT OF PANDEMIC

McAllister gets business perspective from across the country

By JOHN HOWELL
Posted 5/28/20

By JOHN HOWELL Ward 7 Councilman Steve McAllister is accustomed to taking calls from his constituents, knowing where they live in the ward and what's needed to address their problem or concern. In recent weeks, however, McAllister has been answering

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IMPACT OF PANDEMIC

McAllister gets business perspective from across the country

Posted

Ward 7 Councilman Steve McAllister is accustomed to taking calls from his constituents, knowing where they live in the ward and what’s needed to address their problem or concern.

In recent weeks, however, McAllister has been answering questions from business across the Northeast and playing a role as a member of the U.S. Chamber of Commerce and Council of State Chambers (COSC) joint task force to support and coordinate the federal and state approaches to reopening the national economy.

The task force has been meeting daily to review how states are addressing the pandemic and what appears to be working and what isn’t.

As director of the Eastern Region for the U.S. Chamber of Commerce, McAllister is Rhode Island’s representative on the task force.

McAllister said last week the task force is drafting a letter urging Congress to pass legislation providing liability relief to specific businesses. The issue, he explained, is that businesses such as health care providers are seeking protection from litigation relating to COVID-19.

“We want to see some direction from Congress,” he said.

The task force is also developing what McAllister calls a “playbook for small businesses.” This addresses questions concerning the Paycheck Protection Program, or PPP, under the CARES Act, which provides a loan/grant to meet payroll and some business expenses including rent and utilities for two months. If the expenditure of the funds meets the guidelines, the money can be deemed a grant. Otherwise it is a loan and must be repaid. The playbook also offers best practices on operating a business with attention to CDC regulations and safety as it pertains to reopening.

In a release to members Friday the U.S. Chamber of Commerce said, “There is a growing concern that the parameters to receive PPP loan forgiveness do not meet the needs of small businesses and their employees, especially in a phased-in reopening environment.

“Specifically, the PPP's rules limiting loan forgiveness to expenditures during the eight weeks after origination and the requirement that no more than 25% be spent on non-payroll costs, fail to match the expenses small businesses are incurring during the phased reopening.”

The task force has further developed a state-by-state guide so chambers can easily reference regulations and directives as they affect their members.

“We’re trying to do one-stop shopping [for all the answers],” McAllister explained.

The task force conference calls occasionally feature a speaker who will outline issues being faced by a given business group of state and measures being taken.

“We’re learning from each other,” he said. Some situations seem insurmountable, such as that of Hawaii, where tourism plays a huge role in the economy. McAllister noted the representative from Vermont likewise cited that state’s dependence on tourism, to which the Hawaiian representative responded, “They can at least drive there.”

“It’s going to take years for [the economy] to go back to where it was,” McAllister said.

McAllister said much of his day is spent giving online briefings to groups that can range from a dozen attendees to hundreds. Among specific issues are revisions to payroll requirements relating to the PPP to allow for companies to defer use of funds until their business returns; additional PPP funding; and concerns over the amount of extended unemployment benefits that serve to discourage some employees from returning to work.

“The business community is hurting. A lot of people are hurting,” he said.

He said the task force has “got to be plugged in all the time.”

Close to home, the group is seeking to make a group of nonprofits eligible for the PPP. That would include chambers of commerce, the very group seeking to get help for businesses.

McAllister, business, chamber

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  • Reality

    Hey Stevie

    How many businesses are giving raises to their workers now ? Warwick is thanks to the generous contracts Solomon negotiated and you advocated and voted for.

    Your right Stevie people are hurting but not the city workers or retiress.

    You should be ashamed of yourself.

    BTW....was it your wife's brother who Solomon hired in the board of canvassers as a thanks for all your support ?

    Thursday, May 28, 2020 Report this