Detroit Regional Chamber > Tele-Town Hall with Jeff Donofrio

Tele-Town Hall with Jeff Donofrio

April 6, 2020
Sandy Baruah

Good afternoon, everyone. This is Sandy Baruah from the Detroit Regional Chamber. Welcome to our ongoing Tele Town Hall series featuring news that you can use regarding this new world that we live in – The world that’s being impacted by COVID-19. Today, I am very pleased that we have a return guest and he’s been one of our most popular guest that we’ve featured on this program. Jeff Donofrio is the director of the governor’s Labor and Economic Opportunity division, of the state government. Jeff has been working side by side with the governor implementing the executive orders, ensuring that we all stay safe making sure that Michigan does everything that we can to ensure that we beat this virus to the extent that we possibly can and keep as many Michiganders safe as possible, but also planning for economic sustainability and economic success once we come out on the other end. Jeff, thank you so much for joining us today.

Jeff Donofrio

Sandy,Thank you for having me again. And appreciate you providing these forums to your members and really becoming a trusted source of communication – as you always have been – to the business community in Southeast Michigan.

Sandy Baruah

Well, I appreciate that and the $20 I promised you is in the mail. Jeff, Let’s start. So much has happened since you were first on this Tele-Town Hall series, which was over a week ago now. Why don’t you give our listeners an update in terms of what has happened and what’s new, say, over the last two or three days?

Jeff Donofrio

Sure, Thanks, Sandy again. And you know so my department, the Department of Labor and Economic Opportunity is really focused on three things. We’re focused on saving lives by flattening that curve, driving down the number of transmissions through COVID-19. And by implementing the executive orders that the governor has has put in place to the greatest extent possible; To work with business, to work with people to make sure that that Stay Safe Stay Home order is really fully implemented. The second thing is to provide emergency support for people and for businesses who are suffering in this this time of crisis. And we’ll get to that in a second. But the third is [as] Sandy said, is to also take a look at how have other places around the world restarted. How do we restart our economy? And then how do we make sure that we have a recovery that’s gonna put Michigan on the fast track back to economic growth? So today I want to talk about just a two main things for people and for businesses: The emergency support that we’ve put in place and what is available to Michiganders today. Yesterday I think many of you saw that we reported 303,000 Michiganders had filed for unemployment insurance. That’s a record for us, of course, in the state of Michigan and something that was a record the previous year as well, but something that is really indicative of the demand and the real fiscal hurt that’s out there for individuals. We know that there’s been problems with our system at times, And that’s because more than half a 1,000,000 people have filed for unemployment insurance. We went from 5000 week. Now, more than half a 1,000,000 people have been filed. So we’re asking people to be patient. You could go to Michigan. gov/UIA. Again, Michigan.gov/UIA. And if your last name starts with A through L, you can file on Monday, Wednesday and Friday. If your last name starts M through Z, you can file Sunday, Tuesday and Thursday. Again, A through L, Monday, Wednesday, Friday, M through Z, Sunday, Tuesday, Thursday. And anybody can file on Saturday. For those who may not have the ability to go online and file, they can call 866.500.0017. Again, 866.500.0017. The governor put in place some executive orders that expanded eligibility for unemployment insurance. Let me show you what that is. If you’re seeing the power-point here that I’m advancing, I’m gonna try to make sure that we go through this and you get some of this information. The Chambers also gonna make sure that you get this after we’re done today. But we made sure that ah, you know, first off, we want to make us many people eligible as possible. So, if you’re sick, immuno-compromised, quarantined? Do you have a loved one that you’re caring for, who’s sick or if your first responder and you’re employed? If you don’t have any type of paid leave, you’re eligible for unemployment insurance, so you can file while you’re in that crunch for a couple of weeks of time. The other thing that’s happened is that there’s been expanded options for businesses as well. So the Work Share program, which you see on your screen today, that’s a program that if you’re reducing the number of hours rather than laying off your workforce, the unemployment insurance agency will help subsidize your payroll and will help get more funds and emergency funds into the hands of your employees, including some additional benefits that are gonna be coming down from the federal government very soon. OK, now the other thing on unemployment insurance. So many have heard that The Cares Act that Cares Act that was passed by Congress, in which was signed into law by the president does a number of things to expand benefits. So the first thing it does is expand benefits to 39 weeks. So, here in Michigan, the governor expanded benefits in emergency action to 26 weeks. We now have an additional number of weeks so you can get up to 39 weeks of benefit. We’ve also put in place, and we’re working with the federal government to make sure the rules are in place before people can apply. But for those were self employed, those who are in the gig economy or independent contractors, you’re gonna be eligible starting very soon for unemployment benefits. We’re asking you not to apply yet because the federal government hasn’t authorized us to process your claims. You don’t need to apply now. We’ll make sure you get your claim, though, when we can open up that portal. Finally, for everybody who’s on unemployment insurance, whether you filed and your claim is in right now or whether you’re gonna file in the future, you got an additional $600 a week from now until the end of July thanks to that federal bill, and so that will be added to the up to $362 that you get cure in Michigan. We’ve also done some things to help on the small business side. So for the MEDC, the Michigan Economic Development Corporation in the Michigan Strategic Fund, which are under our department, put $20 million in place of small business loans and grants. Those are going to a number of different local economic development organizations. The DEGC here in in Southeast Michigan is managing those funds for all of Wayne County, for instance. And what has happened in most cases is that local communities are actually matching those funds with other funds that they have through either philanthropic sources or other local governments. So to find out more about which funding that you could qualify for, please go to Michigan business. org/covid19. That’s Michiganbusiness.org/covid19. You can also call MEDC’s call center at 888.522.0103. Michigan of Department Treasury has delayed some of the filings for taxes for small businesses as well. There’s information on the screen for you there if you have more questions for the Treasury Department about how you can take advantage of that postponement of paying taxes. It’s 5176366925. The small businesses answer loans. Our application to the Small Business Administration for disaster loans was accepted a few weeks ago. Again, if you go to Michiganbusiness.org, you could find out more information on those loans up to $2 million of loans, though at low interest rates for small businesses experiencing trouble right now. Then, finally, the M E D. C. Along with Lieutenant Governor Gilchrist and Former Lieutenant Governor Brian Kelly, launched a website, MIPaycheckProtection.com, that helps describe and give details on the SBA’s Paycheck Protection program. That’s again another Cares Act program that allow small businesses to get low interest or zero interest loans and pay their payroll, pay their staff. Those loans are forgivable if you’re paying staff. To find out more information again, Go to MIPaycheckProtection.com. Sandy. I’ll turn it over to you to answer any questions.

Sandy Baruah

Sorry, Jeff. I was muted.

Jeff Donofrio

That’s okay. okay.

Sandy Baruah

Thank you, Jeff. That was great. And hopefully you’ll answer the questions. Not me, because you’re the smart one between the two of us.

Sandy Baruah

Let’s start with this: What about Michigan nonprofits? You went through a few different programs that the state has developed recently. What about 501c3’s, 501c6’s, 501c4’s?

Jeff Donofrio

So they’re eligible for all the programs that we just talked about for small businesses. If they are small enough in size, those 501c3 program businesses, those non profits would all be able to apply again. MichiganBusiness.org will give you more information.

Sandy Baruah

Great. And is that roughly the same employee limit that the federal government uses? Which is roughly 500 depending on the industry type?

Jeff Donofrio

So for the Small Business Administration, those loans are definitely the federal government standard for small business definition. For the MEDC loans, those are a little bit smaller, so these are gonna be, in many cases, businesses under 50. If you go to the MichiganBusiness.org, you’ll find out more information. The other program that M E. D. C. launched just recently was, If you’re a small manufacturer, and you’re looking to produce that personal protection equipment – that healthcare equipment so vitally necessary and needed right now – we will give up to $150,000 loan just a grant to be able to retool your manufacturing process and be able to produce that equipment. So, up to $150,000 in grants to retool and produce that personal protective equipment.

Sandy Baruah

You know, that is that’s a really fabulous idea, Jeff. I’m so glad the state is doing that. I think one of the great stories coming out of this is how Michigan’s manufacturing base has really answered the moment and have retooled and started making either PPE or parts for ventilators. And they’ve done that in record time. It’s really impressive.

Jeff Donofrio

Absolutely, absolutely.

Sandy Baruah

What about the compatibility between the state programs and federal programs? If you apply for a state program, are you ineligible for a federal program or vice versa?

Jeff Donofrio

No. So, uh, applying the one of the other does not limit your application to another. So if you apply for the M E. D. C programs, you should still be applying for the S B A. In my opinion.

Sandy Baruah

Before I turn it over to Brad Williams, our Vice President of Government Affairs, for questions from our audience, talk a little bit if you would Please, Jeff, About what you’re seeing in terms of our business community being able to respond and adhere to the governor stay at home Order. I know there were a few issues early in the process about, you know, Am I considered essential or not? How is that unfolding now that we’re into this?

Jeff Donofrio

Yeah, I think you know what I’ve seen from the business community as well as from the community at large here in Michigan is everyone’s really come together and is trying to do the right thing Both for, uh, you know, the state of Michigan are residents, their neighbors and themselves. You know, the only tool that we have in this fight is really social distancing and staying home, right? Making sure that we’re not spreading the virus to any extent possible. So the implementation of that order while there was, I think, a lot of questions at first, and a lot of folks who, you know, had to make some judgment calls. For the most part, I think businesses are really complying with it, and they’re getting the fact that the order is in place really to protect all those individuals, particularly most vulnerable, who may be infected with this and would have to go into the hospital and potentially would be at risk, at higher risk that is. You know, the thing I think that I’ve heard the governor say, I even heard her say a version of this last night on her town hall is, if you have a question about if you’re essential industry, you’re probably not. So, we’re trying to make sure that it’s understood and that people are taking it seriously and for the most part, Sandy, I think they are.

Sandy Baruah

Good. That’s our experiences as well, too. I think everyone wants to do do the right thing, and I think people who may have questioned the severity of this health crisis are no longer questioning that severity. So great. With that, let me turn it over to my friend Brad Williams.

Brad Williams

Thanks, Sandy. And thanks Jeff for all you’re doing. I know it’s probably been an exhausting couple of weeks for you and your team over at Leo. So thank you for all the work that you’re putting in. There are a number of questions about unemployment in the Enhanced Benefits and the CARE act. When does the $600 the additional $600 in the Care Act start getting paid out?

Jeff Donofrio

So for those folks who have already applied for unemployment assistance will automatically apply that to their payments. And so there’s no need to call in and re file your unemployment application. But we’re just waiting on the Department of Labor, the U. S. Department of Labor, of the federal government to provide some guidance for us and to allow us to start paying that. So we’re hopeful that it’s gonna be in the next week.

Brad Williams

Okay, And that’s in addition to the $362 available from the state, Is that correct?

Jeff Donofrio

That’s right.

Jeff Donofrio

Okay, now there’s a question from a 1099 worker in here as well. This 1099 worker asks about if we have significantly reduced service is but still have a small amount of virtual work. Would they qualify under this scenario?

Jeff Donofrio

So my recommendation when when we open up the portal for 1099s to apply and that’s not the case yet again because we’re waiting on the federal government to tell us we can do that. But when we do, I would recommend that person apply. you know, certainly You’re eligible for unemployment generally, if you’ve had a reduction in your hours, right? So even if you were reducing your hours by a significant amount, we would be able to pay you unemployment. So you still can be working part time and beyond on unemployment. So, without knowing the details of the specific case, I would say apply when we open that portal and then we’ll make sure that we get him every benefit he deserves.

Brad Williams

Yeah, And here’s another question about unemployment, and I’m trying to group these together a little bit into topic areas: What if you already apply for unemployment benefits, is a self employed or gig worker and were denied benefits? Will you be able to reapply when the portal opens? Or do you need to reapply when the portal reopens because you were denied prior as an unemployed worker?

Jeff Donofrio

So that’s a great question, Brad. And at this point, what we’re saying is, if you’ve already applied, we’ve got you in the system, And if you’ve applied in the last two or three weeks during this crisis, we’re gonna go back first and re examine your application to see if the new benefits and the new clarity that the federal government is giving us allows you to be paid benefits. And so then we will automatically apply those or we’ll give you a call to say you need to take one or two more steps, right? Provide us some documentation that the U. S. Department of Labor is asking for us to collect. But we would say, Do not apply again. Wait for us to get in touch with you. And again, we’re hoping to have more information from U. S Department of Labor in the next week.

Brad Williams

All right, what about there’s a question about Ah, this questioner has a daughter who goes to college in Ohio but files and pays taxes in Michigan. Does she filed for unemployment in Michigan or Ohio? And there’s there’s ah, number of questions about college students and those sorts of things. How does it apply for college students or part time workers?

Jeff Donofrio

So, if the person is working in another state, and it means that they are paying unemployment insurance benefits in another state. That’s a question. I think we’re gonna have to get a new answer for on. I believe that they would be eligible, though. If they’re paying their taxes to another state’s unemployment insurance agency, it’s they should be filing with that state. If they’re paying their unemployment insurance agency taxes here, they should file with us. But you know, the best thing to do probably would be again, Go to Michigan.gov/UIA, And try to apply there and see if we have a question about your status will likely get in contact with you.

Brad Williams

And I will mention to the folks listening – as I have in past calls, too – if we don’t get to your specific question while we’re on the phone this afternoon, my team has been going through after we hang up the phone during these calls, and trying to get to is many of these individual questions as possible in reaching out to folks individually. So know that we are doing our best to get to as many of these questions as possible, whether we can do it in a public form or not, because we know how important giving answers to these questions are to each of you individually. So I’m gonna move Jeff to some some other topics that that’s all right with you know, unemployment is top of mind for a lot of folks. But there’s also a lot of other things. There’s some questions in here about the Cares Act and in PPP. For example, too. There’s a question here for PPP. How is payroll to the employees slash owner, over the amount of $100,000 included in the average? Do you just cap it at $100,000? Or do you not include these thes persons wages at all? So, if you have employees with over $100,000 who make over $100,000?

Jeff Donofrio

So, I’m flashing back on the screen, the website that I would want to direct everybody to who has questions on the payroll protection program. It’s the MIPaycheckProtection.com. So MIPaycheckProtection.com that’s gonna give you more information there, some videos on there. I would urge anybody who has a question on it to go to that web site.

Brad Williams

Yeah, I know from what we’ve heard already today, anecdotally and from some other members, is that there is some hiccups in the rolling out of the Patriot Protection Program. And so hopefully we’ll get those ironed out as quickly as possible, And folks will have the ability to be patient as we’re getting the federal government and SPA are getting this going. And of course LEO will do the best they can to help connect folks with the federal SPA on this. I know, but there’sonly so much we can do in this short period of time.

Jeff Donofrio

Yeah, Brad, I would I would just recommend if if someone still has questions and are looking for assistance from us, call that 800.522.0103 number. That’s M E. D. C’s Business call center again. 888.522.0103.

Brad Williams

There’s a there’s a question that just popped up. If there will be a recording of this, of course, there will be a recording of this. We record all of these tele town halls in post them on the chamber website DetroitChamber.com/covid19. So go and look for that may not be this afternoon, but maybe this weekend or the first part of next week. Can you tell us just what the difference between the PPP loan and the disaster recovery loan for the SBA are?

Jeff Donofrio

Again, without getting into too many details, What I can tell you is the disaster loan that the Small Business Administration put in place is a low interest loan, right? It’s up to $2 million. Again, you can go to the MichiganBusiness.org’s Web site to find out more about that for the paycheck protection loan that is a loan that could be forgiven. If you are using that to pay, continue paying your employees. There are a number Other details that you have to provide The small business administration again would urge you go to MIPaycheckProtection.com to be able to find out more information about it.

Brad Williams

There’s a question in here, Jack, that you may or may not know the answer to. And even if you do, you may not be able to share. But I think it’s worth asking anyways about the stay at home order. We know right now it is in effect until – I believe – through Monday the 13th. Do we do you know if it’s going to be extended? Beyond that? It looks like the least. The federal government has extended social distance and guidelines beyond that. And if so, are we likely to know when that would be, when we’ll find out if it’s gonna be extended?

Jeff Donofrio

Sure. That’s another good question. Brad, we certainly we get a lot here. I think you know what we have to look at is what is the data and the signs telling us from a public health perspective. The executive order, which was put in place the Stay Home Stay Safe, was a direct corollary to the fact that we don’t have any other way to stop the spread other than stopping people from coming in contact with each other. We still don’t have enough tests to be able to pinpoint exactly where this is throughout our state. And so the test numbers that you’re seeing – while they’re growing much larger and you’re going to see them grow much larger over the next week – unfortunately, the mortality rate you see there are there more folks dying each day? Um, we don’t have enough test to be able to say, that’s the full picture of what’s going on in the state. And so they are likely thousands of pound thousands of more people who are infected now and not being tested. So we have to be sure that when we look at these orders and we look at what comes next, we’re doing what’s the health professionals and the public health professionals at U of M are helping us be able to determine this. We’re looking at what other countries have done as they have shut down and re started. And you know the various aspects of what other states are doing you mentioned. I think Ohio extending the order as well. I think that’ll, all go into the calculation of what the governor does, and she’s evaluating that now. I think we have to see what the data tells us this next week in particular, though. You know, the order was has been in place, now, this will be two weeksa the end of this week. We know that what the public health professionals tell us is that [with]this virus, if you’re exposed, you still can be spreading this without symptoms for more than two weeks or for about two weeks. And so we may not have the actual data telling us that this has worked until next week. We may not have it, you know, until further time. Beyond that. But what the public health professionals are saying to us right now is we haven’t seen the peak at the peak is likely not to come for another couple weeks, at least s. So I’d say, you know, the governor will likely talk about what comes next in the next week or so. Just stay tuned.

Brad Williams

Okay? The last question I have for you from our listeners, Jeff, and then I’ll give it back to Sandy. And again, we’ll try to get to some of these questions off line, too. But, um you know, you in the department have spent a lot of time in response mode dealing with the crisis. At hand but have you started to think about what is going to be needed for a recovery once we get out of the immediate crisis? And what the state’s role is going to be in that months down the road, once the public health emergency has passed, how we how we recover?

Jeff Donofrio

Yeah, you know, it’s it’s so important that we start thinking about what’s gonna put Michigan on track to grow again economically, and you know we have. The nice thing is that I started this job around August of last year and from August until really about a month ago, when this crisis hit, all we had been thinking about is is how do we bend the curve up for Michigan? How do we make sure that Michigan is gonna be a more prosperous state in 10 or 20 years from now because of the actions that we take today? Much of that work is applicable to what we’re trying to do in a recovery effort. So, for instance, the Governor signed the Reconnect program on this last week, which was passed through the Legislature. The Reconnect program is in place to give anybody who is over the age of 25 doesn’t have and associates degree or higher on opportunity go to community college and get a high quality certificate to get a associates degree that matches with an in demand job that helps someone increase their income. Those types of programs, we’re really gonna be needed here. So we know we’re gonna have to help people be able to get the skills that are gonna get them higher incomes that are gonna make them competitive with the jobs that are out there. We know we have to really work with our business sector in both creating jobs, building back the economy and these jobs that these companies that have been hurt in this a period of time. And so we’re working on different techniques to do that as well. And we know there’s a whole host of other things that we need to put in place. What I think again are focused primarily right now is is those top two things saving lives and getting that emergency support. But we’re very cognizant and really making sure that we have a plan for how we restart and then how we go into recovery.

Brad Williams

Great, Sandy, I’ll hand it back off to you on. Thanks, everyone, for the questions you submitted, and we will try and get to a lot of these off line as well.

Sandy Baruah

Brad, thank you very much and, Jeff, thank you so much. Not only for your time with our audience today, but we love that we’re be able to make all this information available to the general public in addition to Chamber members. So, thank you so much. And thank you for all the incredible work that you, the Governor, everyone who’s in state government right now we know that you’re working literally 24 by 7 on behalf of all of us, So thank you very much. For all of you on the phone, thank you so much for joining us. We have a lineup on Monday of Tele Town Halls that you might be interested in. Monday at 10 o’clock, we have the superintendent of Detroit Public Schools, Doctor Vitti. At 11 o’clock, we have a webinar focused on the Paycheck Paycheck Protection Act. I know there’s lots of questions about that that will be in conjunction with our friends at Dykema and TCF Bank, so please join us at 11 for a webinar on PPP. And then at 1p.m., we have the Speaker of the House, Lee Chatfield, joining us. So with that, our sincere thanks to Jeff Donofrio and his team at Labor and Economic Opportunity, our thanks to all of you on the phone, please go out and enjoy this sunshine; Observing, of course, all appropriate social distancing guidelines. Have a good weekend. Thank you.