The Bernie Buzz

The CARES Act created the Paycheck Protection Program (PPP) to provide forgivable loans to help small businesses pay workers, rent, mortgage interest, and utilities. Since the funds became available in early April, over 11,000 Vermont businesses have received a total of $1.2 billion. However, the program has fallen short in many ways. The initial federal guidance about loan forgiveness was unclear, leaving many Vermont business owners confused and wondering if they should apply. Many businesses that did receive funds were concerned their loans would not be forgiven, leaving them with debt they might not be able to pay back.

First and foremost, I believe that no one in this country should go hungry — ever. This is especially true during the current emergency, when so many people are struggling. Hunger is a growing crisis across the country and Vermont is no exception. Before the pandemic hit the U.S., 3.5 percent of Americans were unemployed and 37 million Americans struggled to put food on the table. In April of this year, 14.7 percent of Americans were unemployed and so many cannot afford food that 98 percent of foodbanks have seen an increase in demand. Here in Vermont, 25 percent of people responded to an April survey saying they are experiencing food insecurity — a 33 percent increase just in the first month of this crisis. Nutrition programs and food shelves throughout the state are seeing huge increases in the numbers of Vermonters seeking help, many for the first time.

Millions of Americans’ economic security is being threatened due to this crisis. During this difficult time no one should have to worry about going into default or making additional sacrifices to make their student loan payments. The federal emergency relief bill (the CARES Act) suspends payments and interest accrual for federal student loans through September 30th.

While the federal stimulus law (the CARES Act) contains a number of provisions to keep families in their homes and help them pay rent, it does not go nearly far enough. The law puts a moratorium on foreclosures and evictions while also providing mortgage forbearance for homeowners with federally-backed mortgages. It also includes a moratorium on evictions for properties receiving any federal assistance. However, this does not provide relief for millions of Americans.

This is an unprecedented moment in American history. We must face this crisis courageously and compassionately. My office is here — know that we are doing everything we can to fight for you and to be responsive. We have compiled the following resources for Vermonters during this difficult time — I hope you find this information helpful. Do not hesitate to contact my office with questions or concerns. We’re all in this together.

As we all do our part to stay home to stop the spread of this disease, many businesses are struggling. They are forced to significantly change their operations or shut their doors completely during this crisis. The federal stimulus law provides relief to small businesses and nonprofits so that they may reopen their doors to the public when it is safe to do so. In Vermont, 96% of businesses are classified as small businesses, employing over 155,000 Vermonters in good-paying jobs. I know many in Vermont will agree that our small businesses support and sustain our communities — it is critically important that the federal government step up to support them.