Fed: Manufacturing Output Declined 6.3% for March
US manufacturing output declined 6.3% in March as the coronavirus pandemic disrupted supply chains, according to the Federal Reserve. February’s data was revised downward to a 0.1% decline from an initially reported gain of 0.1%.
Empire State Manufacturing Survey: April 2020
Business activity plunged in New York State, according to firms responding to the April 2020 Empire State Manufacturing Survey. The headline general business conditions index plummeted fifty-seven points to -78.2, its lowest level in the history of the survey—by a wide margin. New orders and shipments declined at a record pace. Delivery times lengthened, and inventories fell. Employment levels and the average workweek both contracted at a record pace. Input price increases slowed considerably, while selling prices declined modestly. Though current conditions were extremely weak, firms expected conditions to be slightly better six months from now.
Latest SBA PPP Data through 4/14
The Small Business Administration has announced that more than 1 million loans have been approved under the Paycheck Protection Program, totaling nearly $250 billion in financing for small businesses—including more than $30 billion for 72,728 small manufacturers, or 12.25% of total distributed PPP funds. The NAM has called on Congress to approve additional funds to meet the extraordinary need. The SBA has now provided this interim final rule focused largely on individuals with self-employment income and an updated FAQ document with new information for lenders.
Statement by Secretary Mnuchin and Administrator Carranza on the Paycheck Protection Program and Economic Injury Disaster Loan Program
“The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses.
“By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations.
“We urge Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks.
Cuomo: “There is a Blueprint for How We Will Reopen The State”
Governor Cuomo said that there is a blueprint for how they will reopen the state. It will be based on a multi-phase approach using criteria to determine who can reopen. The criteria for each tier will be; 1) How essential is the business? 2) What is the risk of infection spread? 3) What practices and precautions the businesses can implement? More information will be provided when it is released by the governor’s office.
Germany Allows Smaller Shops to Reopen in Lockdown Easing
Bloomberg Reports that German Chancellor Angela Merkel announced tentative steps to slowly start returning the country to normal, allowing some smaller shops to reopen next week and schools to gradually restart May 4th.
Most of the restrictive measures, however, will remain in place through May 3 and many aspects of public life will be limited for weeks and months to come. Germany will need to ease restrictions in “small steps,” Merkel said in Berlin on Wednesday after meeting with the country’s 16 state leaders. “We have made some progress. But I do have to stress that this progress is fragile,” she added. “This is a situation in which caution is the order of the day and not foolhardiness.”
The New York Department of Health has issued the Interim Guidance for Essential Employees Mask Requirement
The requirement is that businesses provide face masks to employees that must interact with the public. Most manufacturers are not effected by this order, but masks remain a best practice for preventing the spread of the virus.
Jackson Lewis P.C. Daily Webinar Briefing on Legal Developments and Practical Guidance Related to COVID-19.
As issues and concerns around COVID-19 continue to multiply and shift, employers are compelled to confront the ever-evolving situation as it relates to their workforce and their business. Our friends and Associate Member Jackson Lewis remain committed to keeping our clients informed on workplace implications of the ongoing crisis. On March 25 we launched our Daily Briefing series—a 10 minute update by a Jackson Lewis attorney followed by a live Q&A session. All participants will be able to submit questions before the briefing through the registration form, as well as during or after the webinar utilizing the webinar tools. For additional resources, including recordings of the most recent Daily Briefings, please check out the Jackson Lewis COVID-19 Resource Page.
Please register for our Daily Briefings via the Register Now link. You can also access all of our prior Daily Briefing sessions by clicking on the View Recordings link below.
April 20 – April 24, 2020
4:00 — 4:20 p.m. ET