-new updates- COVID19 Resources for IBA Members
Updated: Jun 1
The Independent Bakers Association approaches the ongoing coronavirus pandemic with a dual mission: preserving the supply of baked goods to American consumers and protecting the health and safety of IBA member-companies, their staff and families. We will attain these goals by keeping up-do-date resources available on this webpage and by engaging Congress, federal agencies and state governments to promote IBA members' needs.
*new* Though President Donald Trump signed emergency legislation to supplement the CARES Act, smaller businesses still face economic uncertainty. Banks predict extra PPP funds was exhausted by the end of May and states are already calling for more funding to implement widespread diagnostic and antibody testing--a crucial step before fully reopening America's Main Streets. If your company has been unable to secure PPP funding despite applying, please contact IBA President Nick Pyle.
Manufacturers are reporting confusion about another CARES Act provision-a business tax credit for employee retention. A for-profit business or tax-exempt organization can claim a refundable payroll tax credit of up to $5,000 per employee for wages paid between March 12 and December 31, 2020, but only for wages paid during a calendar quarter in which the business is either: 1) shut down by government order, or 2) experiencing a large drop in year-over-year gross receipts.
The credit may be offset in advance against anticipated payroll tax deposits, leaving more cash in the hands of the business throughout the remainder of 2020. Though the IRS provides on going guidance, businesses report hurdles in applying for and implementing the credit. Food industry advocates and other pro-business groups are urging Congress to address the situation in its next COVID-19 response legislation.
The Independent Bakers Association shared its top legislative priorities with staff of more then 50 House and Senate offices on May 11. The four recommendations in the outline stem from consensus among those on IBA's April telemeeting as well as direct input from several IBA member-companies.
As party leaders slowly develop their next COVID-19 response packages, House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) spar over logistical and policy priorities. Now that the urgency which bore the first response bills has dwindled, both parties are gathering momentum to push for their pre-COVID-19 agendas. The prognosis for a final compromise bill by the Memorial Day recess is grim.
IBA will discuss the legislative and regulatory outlook in detail at our virtual Annual Convention in June.
*new* Resources for IBA Members
updated June 1, 2020