It is estimated that more than $1.7 billion will flow to Kentucky as part of the Covid-19 Relief Package developed by Congress. Key elements for consideration by owners, operators and managers of career colleges and schools in the Commonwealth:
> $30 billion for an Education Stabilization Fund for states, school districts and institutions of higher education for costs related to the coronavirus. $14.25 billion for emergency relief for Institutions of Higher Education to respond to the coronavirus. 90% of funds via a formula base, 75% on its share of Pell FTE and 25% on non-Pell FTE, excluding students who were exclusively enrolled online prior to coronavirus. At least 50% of institutional funds must provide emergency financial aid grants to students that can cover eligible expenses under a student’s cost of attendance, such as food, housing, course materials, technology, health care and child care. Remaining institutional funds may be used to defray expenses for IHEs, such as lost revenue and technology costs associated with a transition to distance education.
> Expands unemployment insurance from three to four months, and provides temporary unemployment compensation of $600 per week, which is in addition to and the same time as regular state and federal UI benefits. Other noteworthy provisions:
- $360 million for Department of Labor to invest in programs that provide training and supportive services for dislocated workers, seniors, migrant farmworkers and homeless veterans. Includes funding for implementing new paid leave and unemployment insurance benefits.
- Part-time, self-employed and gig economy workers now have access to UI benefits.
- Allows employers to receive an advance tax credit from the Treasury instead of having to be reimbursed on the back end.
- $10 billion for Small Business Administration (SBA) emergency grants of up to $10,000 to provide immediate relief for operating costs.
- $17 billion for the SBA to cover six months of payments for small businesses with existing SBA loans. Rent, mortgage and utility costs now eligible for SBA loan forgiveness.
- Establishes a $500 billion lending fund for businesses, cities and states. Authorizes the secretary of the Treasury to make loans, loan guarantees and other investments in support of eligible businesses, states and municipalities that do not, in the aggregate, exceed $500 billion.
Source: National Conference of State Legislators, March 25, 2020. https://www.ncsl.org/