There is More for Manufacturing in the CARES ACT
In addition to the emergency funding provisions of the CARES Act are more items related to manufacturing. We have been in touch with Senator Gillibrand’s office on this topic.
- Directs the National Academies to study the manufacturing supply chain of drugs and medical devices and provide Congress with recommendations to strengthen the U.S. manufacturing supply chain.
- $50 million is provided for the Hollings Manufacturing Extension Partnership (MEP’s) to help small- and medium-sized manufacturers recover by finding value within the supply chain and expanding markets. For every one dollar of federal investment, MEP generates $27.20 in new sales growth for manufacturers.
- The bill also includes an additional $10 million for the National Institute for Innovation in Manufacturing Biopharmaceuticals to support the development and manufacture of new medical countermeasures and biomedical supplies to combat the coronavirus.
There is much more in the link below
US Treasury & SBA Release Paycheck Protection Program (PPP) Information for Lenders & Borrowers
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
- For a top-line overview of the program CLICK HERE
- If you’re a lender, more information can be found HERE
- If you’re a borrower, more information can be found HERE
- The application for borrowers can be found HERE
The Corona Virus Pandemic: Analysis of Force Majeure
The invocation of force majeure is an extreme measure, the last time the United States faced large scale force majeure disputes was the terrorist attacks on September 11th, 2001 and Hurricane Katrina in 2005. Contractors will notice that many of the force majeure clauses in their respective contracts contain a “terrorist attack” provision, before 9/11, this was not the status quo. The Pandemic is an event that has such a large scale impact on New York, the United States and the World, that force majeure law will likely change, throughout the World, forever.
US Manufacturing Employment, New Orders Indexes Fall to Decade Lows
The Institute for Supply Management’s manufacturing PMI for March was 49.1%, one percentage point lower than it was in February. But that number belies the bigger picture of an industry wracked by the coronavirus pandemic. New orders, production, employment, prices, exports and imports all contracted, according to the Manufacturing ISM Report On Business.
The index measuring employment in the sector contracted for the eighth month in a row, to 43.8% from 46.9%, and at a faster rate this month than before. 43.8% represents the employment index’s worst reading since May 2009. Only 3 of 18 industry sectors surveyed reported an increase in employment: printing and related support activities, food and beverage companies, and electronics.
Manufacturers Are Already Fighting Coronavirus
As Covid-19 has swept the U.S., the response has been one of the most incredible flurries of ingenuity and sacrifice that my company has witnessed in more than 90 years covering the manufacturing industry. Companies of all sizes are coming together to produce ventilators, N95 masks, components of testing kits, and other lifesaving products. And none of it took government force.
Under the Defense Production Act, president can force businesses to make products in short supply during times of national emergency. Many legislators and members of the media have called on President Trump to invoke these powers to their full extent.