Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
9b
BRIEFING ITEM
Date of Meeting
April 14, 2020
DATE: April 10, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Eric ffitch, State Government Relations Manager, External Relations
Ryan McFarland, Federal Government Relations Manager, External Relations
Lance Lyttle, Managing Director, Aviation Division
Jeffrey Brown, Chief Operating Officer, Aviation Division
Dave McFadden, Managing Director, Economic Development Division
Bookda Gheisar, Senior Director of Equity, Diversity, and Inclusion
Dawn Hunter, Senior Manager, Airport Dining and Retail, Aviation Division
SUBJECT: COVID-19: Federal CARES Act Relief and Upcoming Recovery Proposals
EXECUTIVE SUMMARY
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security
(CARES) Act into law. The CARES Act is a $2 trillion relief package designed to mitigate the
economic impacts of the COVID-19 pandemic. Key components of the legislation include direct
payments to individual Americans, an expansion in unemployment insurance, aid for distressed
industries, an additional infusion of funding for the health care sector, and additional assistance
for businesses and state and local governments.
The memo below provides a high-level overview of the CARES Act, discusses provisions that apply
directly to the airport, and then considers those provisions that seek to directly assist our small
business partners and the workers on whom we all rely.
CARES Act Overview
The CARES Act is the largest relief package passed in the history of the federal government. For
comparison, the American Recovery and Reinvestment act—to respond to the 2008 financial
crisis—was $831 billion over ten years, while the Troubled Assets Relief Program that stabilized
the banking sector was $450 million. The focus of the first three COVID-19 relief packages is
mitigating the immediate impacts of the epidemic, such as public health issues, sick leave,
unemployment insurance and assistance, and aid to businesses and government entities.
A central component of the bill was direct relief for workers and their families, authorizing $1,200
payments direct to households via direct deposit. Those payments are based on income, capped
at households making $99,000 annually for single filers, and distributed based on 2019 tax
returns. It is expected that these payments will take 1-2 days to be distributed. The package also
COMMISSION AGENDA – Briefing Item No. __9b__ Page 2 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
contained a significant expansion of both the length and amount of unemployment insurance
(UI) that is available, including making those available to gig workers, independent contractors,
and those who are self-employed. The expansion amounts to an additional $600 per week on top
of regular unemployment benefits and will be available for fourth months.
Another central feature was more than $377 billion in small business loans and assistance,
primarily in the form of the newly created Paycheck Protection Program which provides eight
weeks of cash-flow assistance through 100 percent federally guaranteed loans to small
employers who maintain their payroll during this emergency.
The CARES Act also creates a $454m Treasury Department fund to provide liquidity for
businesses, state/local governments, and tribes. This funding will be distributed through the
Department of the Treasury’s Exchange Stabilization Fund, and will be used for loans, loan
guarantees, and other investments. The Port’s Washington, D.C. representative and the
American Association of Port Authorities engaged policymakers to expand eligibility under this
fund to include political subdivisions like port districts.
The portions of the memo below provide specifics on direct airport which programs are available
our small business partners, to their workforce, and to our employees, and what outreach efforts
we’ve undertaken to ensure our partners can access that relief.
Aviation Division and CARES Act
The CARES Act provides a total of $10 billion in grants for airports, coming from the general
fund, not the Airport and Airway Trust Fund, as follows:
• $500 million to make FY 2020 AIP grants available at 100 percent federal share.
• $9.4 billion for any uses that airport revenues can lawfully cover.
o $7.4 billion at a 100 percent federal share distributed 50% by 2018 enplanements, 25%
by airport debt service costs and 25% based on the ratio of unrestricted reserve to debt
service.
o $2.0 billion for grants at a 100 percent federal share, apportioned by the regular AIP
formula. The current requirement that any airport development project must follow the
AIP’s prevailing wage standard, is applied to these new funds as well.
▪ Any remainder after the formula run is moved to the $7.4 billion pot above
o $100 million for general aviation airports to use for any lawful airport revenue use, at
100 percent federal share distributed by airport percentage of total National Plan of
Integrated Airport Systems (NPIAS) development costs.
COMMISSION AGENDA – Briefing Item No. __9b__ Page 3 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
To receive these grants, primary airports such as SEA are required to maintain at least 90
percent of their employment levels (measured against the employment level as of the day the
bill gets signed into law) through December 31, 2020, unless the Secretary provides a waiver
because the airport is experiencing "economic hardship" or if the requirement would
undermine aviation safety and security.
In reviewing the $7.4 billion allocated to airports to understand what may come to SEA, 50% is
a straightforward formula allocation, coming out to approximately $125 million to represent
SEA’s share. The second 50%, tied to debt ratios for all airports, is more complicated to
estimate and we are working closely with the airport associations to better assess that amount.
Related Businesses and Activities
Airport Concessions: The final bill does not include a House proposal that would have required
airports use a portion of federal funds "to provide financial relief to airport concessionaires
experiencing economic hardship...."
TSA: $100 million for the Transportation Security Administration overall, with $54m specifically
earmarked for cleaning and sanitation at checkpoints and airport common areas.
REAL ID: The bill would extend the REAL ID requirement until not earlier than September 30,
2021 - a year later than the current enforcement deadline.
CARES Act and Small Businesses
Overall, the third COVID-19 relief package provides $377 billion in relief to small businesses and
their workforce. This is the main vehicle for relief for many port stakeholders, including
drayage truck drivers, airport ground transportation operators, and airport concessionaires.
Some highlights are below:
• Traditional 7(a) SBA Loans and the CARE Act Paycheck Protection Program: The third
COVID-19 package creates a new $350 billion “Paycheck Protection Program” within the
existing 7(a) loan program. The new program provides eight weeks of cash-flow assistance
through 100 percent federally guaranteed loans to small employers who maintain their
payroll during this emergency. If the employer maintains its payroll, the portion of the loan
used for covered payroll costs, interest on mortgage obligations, rent, and utilities will be
forgiven. Specifically, the new program would apply to:
- Small employers with 500 employees or fewer, as well as those that meet the current
Small Business Administration (SBA) size standards;
- Self-employed individuals; and
- Certain nonprofits, including 501(c)(3) organizations and 501(c) (19) veteran
organizations, and tribal business concerns with under 500 employees.
COMMISSION AGENDA – Briefing Item No. __9b__ Page 4 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
• Express Loan Program: The third COVID-19 package raises the maximum loan amount
under this program to $1 million from $350,000.
• Economic Injury Disaster Loan Program: The third relief package also expands eligibility for
access to SBA’s Economic Injury Disaster Loans (EIDL). EIDLs can be worth up to $2 million
and the interest rate is 3.75% for small businesses and 2.75% for nonprofits.
Outreach to Impacted Tenants and Small Business Partners
Port staff has worked with the Small Business Development Center and other partners to develop
webinars on CARES Act loans and other business resources. The information about these
technical assistance webinars has been shared broadly with drayage truck drivers, Airport Dining
and Retail tenants, WMBE small businesses, maritime tenants and other small business partners.
Information about these webinars and resources for small business was also distributed to over
25,000 stakeholders including the Port’s ethnic media contacts, Connections subscribers, and
corporate partners.
CARES Act Assistance for Workers and Port Employees
Port Jobs and Fair Work Center have been engaged in providing services to the workers at the
airport.
Fair work center will provide workers with:
• Fair Work Center is hosting weekly informational webinars that are open to workers in
all industries (in English and Spanish). These reach around 100 or more people each
meeting, and the information is additionally accessible through our educational
materials. Fair Work Center’s weekly meetings cover pertinent information regarding
immediate and urgent worker needs in the context of COVID-19, including:
unemployment, sick time, and changing implementation and guidelines around
emergency assistance. Airport worker trainings will also include this information more
specific to the Port and SEA.
• Training material will also go over how to get in contact with the service provider (such
a Partners in Employment and Port Jobs) to connect workers who need to speak to
someone for assistance with unemployment application, rental assistance/emergency
assistance, job search assistance and other support.
• Fair Work Center will organize ongoing webinars and trainings specific to airport
workers, assessing the needs of these workers and their requests for support to
incorporate in these trainings. They plan to offer these on a regular basis and reach
hundreds of people each time. They will offer live translation services to make
accessible for as many people as possible. The plan is every two weeks but can adjust
according to need.
COMMISSION AGENDA – Briefing Item No. __9b__ Page 5 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
• Additionally, educational materials are tailored to specific industries and distributed to
thousands of workers through outreach and organizing staff. They will develop materials
tailored specifically for airport workers in plain language (and in multiple languages) to
distribute widely through various means (online, email, text, etc.) and reach thousands of
workers.
Port Jobs will provide workers with:
• Sea-Tac Airport Job Opening information, and other job openings as needed: currently,
five employers are continuing to hire at Sea-Tac; laid-off airport workers may also apply
for transportation and food-related positions outside the airport, many currently hiring.
Expected metrics: Port Jobs serves 2,343 clients in the first quarter, and placed 1,226
people into airport jobs. They expect to serve 3,000 clients in the second quarter, with a
pivot in focus from job placement to assistance with both jobs and resources for laid-off
workers.
• Basic Food Employment Training (BFET) information and connections to these services:
Eligible jobseekers receive support services included essential supplies in addition to job
search assistance.
• Guidance to apply for Unemployment Insurance and other online subsidies: State has
now corrected the “standby denial glitch” in the application system. Online applications
are now being processed swiftly; phone communication with Employment Security
continues to be on overload; certain conditions may require phone contact;
Employment Security is in process of hiring 100 additional workers to assist.
• 1:1 Virtual step by step assistance to negotiate the above
• Virtual and scheduled in-person health plan finder assistance: Port Jobs is working with
King County and Project Access Northwest to partner in service of laid-off airport
workers. Expect 3,000 laid-off airport workers to need assistance with enrolling in
continued health care coverage when employer insurance lapses.
• Fair Work Center Resources: Port Jobs has communicated to 30,000 current and former
airport workers the first Fair Work Center Webinar for Monday, April 13
th
. 3,000 people
had opened the email as of noon today.
Current needs that are unmet:
- Worker assistance with Child Care Resources and Support
- Lack of access to internet and a computer at home for workers
- Fair Work Center and Port Jobs both needs more access to interpreters and linguistically
appropriate information in different languages
- support for workers and their families to access food and rental assistance services
- Need Online learning opportunities, all apprenticeship and pre-apprenticeship and
internship programs have been cancelled.
- Assistance with getting unemployment benefits approved
- Assistance with getting small businesses lenders for PPP Loans
COMMISSION AGENDA – Briefing Item No. __9b__ Page 6 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
CARES Act Extensions and Next Steps for Federal Relief Efforts
CARES Act extensions:
In spite of neither chamber being physically assembled in Washington, D.C., the “Pro Forma”
sessions in the House and Senate could allow for quick passage of funding support for critical
small business support programs. Negotiations between House and Senate and between parties
delayed passage, as it was originally expected to occur Thursday, April 9
th
. Monday, April 13
th
, is
the soonest that an extension package could pass.
Democratic representatives were seeking additional money in a package for state and local
governments ($150B) and for hospitals ($100B), plus an increase in funding for the Sustainable
Nutrition Assistance Program. At the time this memo was written, it was not clear what the final
fate of the extension would be.
Priorities for Next Federal Package:
Outreach has been critical in understanding what we need to prioritize for a future federal
relief package, and for future federal assistance as we turn toward recovery. Some priorities
can simply be established based on news reports– for example, the high volume of applications
for the Paycheck Protection Program necessitated its extension. Other priorities come from
direct conversations, as staff learned from partners in the fishing industry that they had
advocated for $1.5b in direct assistance and got $300m in the CARES Act. They are seeking
more, and we recommend supporting their efforts.
Other priorities come from gaps in the third package, which included vital airport funding, for
example, but no direct assistance for impacted seaports. Staff has been working with the
American Association of Port Authorities to determine what a seaport funding measure would
look like.
The priorities enumerated below reflect core Port of Seattle operational priorities, those needs
identified by our core stakeholders and partners, as well as priorities that reflect our core
values. These principles will guide our engagement with congressional offices.
- Continue robust funding for critical programs established in CARES Act, including individual
assistance to families and small business loan programs that help port tenants remain viable
during this continued disruption in normal operations.
- Provide relief to support seaports that are seeing substantially reduced revenue due to a
partial or total cancelation of cruise season as well as a substantial reduction in cargo
volumes.
COMMISSION AGENDA – Briefing Item No. __9b__ Page 7 of 7
Meeting Date: April 14, 2020
Template revised September 22, 2016.
- Include worker protections in relief packages, with an emphasis on a need for federal
acknowledgement that worker displacement during a global public health crisis should not
result in comprehensive loss of individual health insurance protection for workers across
the economy.
- Include investment in seaport and transportation infrastructure as a mechanism for
economic recovery.
- Continue robust funding of airport relief, including potential infrastructure-specific grants to
airports to support continued construction of projects that may otherwise be deferred due
to reduced airport revenues stemming from operational disruption.
- Prioritize federal investments that promote environmental resilience, including supporting a
transition to sustainable fuels in the aviation sector, incentives for adoption of low-carbon
fuels in the transportation sector, and investment in clean energy infrastructure.
- Continue and expand direct relief for federally managed fisheries, and include new
provisions allowing for government purchase of surplus seafood along with flexibility for
refinance of previously issued federal capacity loans.
- Promote recovery of travel and tourism industries through support for destination marketing
organizations, small businesses reliant on travel and tourism, and other critical tourism and
travel infrastructure.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
(2) Full CARES Act summary (provided to Commission via staff email on March 27, 2020)
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
No previous actions or briefings
