CARES Act and Federal COVID-19 Relief Overview

April 14, 2020

Passage of H.R. 748, CARES Act
Signed into law on March 27, 2020
Passed both the House and Senate by
unanimous votes
Third COVID-19 relief package passed since
March 12, 2020
Fourth and fifth relief packages are
expected in coming months

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CARES Act Overview
Direct relief to workers and families
Small business focus
Treasury Department fund for businesses,
state and local governments, and tribes
Relief for airports and airlines
Additional items of interest  health care system, fishing industry

CARES Act and Port of Seattle
Airport and airline-related provisions
$10b to airports through direct grants and other assistance
Loans and grants made available to airlines, under certain conditions
Aid to businesses and governments, including port districts
$454m fund to provide loans to businesses, states, tribes, and municipalities related to losses incurred
because of coronavirus.
Small Business Administration provisions
Paycheck Protection Plan Loans
Economic Injury Disaster Loans
SBA Small Business Debt Relief Program
Fishing and tourism industry relief
Additional items of interest

Aviation Division and CARES Act
$10B GRANTS-IN-AID FOR AIRPORTS
$7.4B for any purpose forany lawfully purpose
50% allocated per 2018 enplanements
25% allocated per 2018 debt service
25% allocated per ratio of unrestricted reserves to debt service
$2B allocated per the regular AIP process
April 10, 2020        $0.5B allocated for federal share of grants
$0.1B allocated to general aviation airports

Allowable uses
Any lawfully purpose for which airport revenue can
be used; e.g.
O&M Costs
Debt Service
Capital projects

Restrictions*
may not be used for any purpose not directly related
to the airport
Only for "purposes for which airport revenues may
lawfully be used"
Retain at least 90 percent of staff through December
31, 2020, (after making adjustments for retirements
or voluntary employee separations)

* Hardship exemption to employment restrictions
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Airlines Financial Relief - $61B
Grants  "exclusively be used for the continuation of payment of employee wages, salaries, and
benefits"

$25 B             $4 B              $3 B
Passenger Carriers                                                  Cargo Carriers                                                      Airline Contractors
Loans**
Lorem ipsum$25 B                           Lorem ipsum$4 B

Passenger Carriers                                                  Cargo Carriers
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** - restrictions on next slide

Loans can only be made if the       Loan and loan guarantee
Treasury Secretary determines      agreements must contain the
that:                                  following:
Airline
Regular credit is not "reasonably           A prohibition on stock buybacks during
Restrictions   available".                the life of the loan unless already
The intended obligation is                   contractually obligated.
"prudently incurred."                      A prohibition on dividend payments for
the life of the loan plus one year.
The interest rate reflects market
A requirement that recipient maintain
risk and is not less than a                      March 24, 2020 employment levels "to
comparable pre-COVID rate.                the extent practicable" and under no
The loan duration is as short as              circumstances can cut employment by
practicable and no longer than 5             more than 10 percent from that base.
years.                                      A certification that the recipient is
"the eligible business must have             based in the U.S. and has a majority of
incurred or is expected to incur               its employees in the U.S.
covered losses [directly or indirectly        Compensation limitations of executives
as a result of COVID] such that the
continued operations of the
business are jeopardized, as
determined by the Secretary."

Cares Act Small Business Resources
Paycheck Protection Program:
Provides funds to pay up to 8 weeks of payroll cost including benefits and taxes
All or portions of the loan amount will be forgiven if certain conditions are met
All businesses can apply including nonprofits, veteran organizations, Tribal business concerns,
sole proprietors, self-employed individuals and independent contractors can apply with 500 or
fewer employees.
Funded via banks and finance institutions
Economic Injury Disaster Loan (EIDL) Program:
Provides for operating cost assistance during the time period of the Disaster Declaration
Can be used for payroll, to pay for sick leave, meet increased production costs due to supply
chain disruptions, or pay business obligations, including debts, rent and mortgage payments
Provides an emergency advance of up to $10,000 to small businesses and private non-profits
Available for most for-profit businesses including self-employed and independent contractors.
More details

Additional Small Business Resources
Small Business Debt Relief Program:
SBA will make payments on all SBA backed loans for six months on loans in
existence prior to February 15th, 2020.
Additional capital resources
City of Seattle Small Business Stabilization Fund
Facebook Small Business Grants Program
Working Washington Small Business Grants (up to 10k  biz w 1-10 employees)
Amazon Neighborhood Small Business Relief Grant Program
Additional business resources
SBA Express Bridge Loans, Export Credit insurance, Small Business Development Centers, etc.

Outreach and Assistance for Impacted Small Businesses
EDD staff tracking resources for impacted
businesses and sharing updates/details with
other staff across the Port (ex. ADR)
Set up webinars with Small Business
Development Center for the Port's small
business tenants and partners
Provided details on Port website regarding
relief for small businesses and related
technical assistance webinars.
Port staff has widely distributed
information on help available and webinars
(ADR, Drayage Drivers, Maritime/EDD
tenants, Ground Transportation, etc.)
Delivered to 25,000+ tenants,
partners, and stakeholders

Partnerships to Support Impacted Small Businesses
Port staff is joined by many partners who are providing support to impacted businesses
across the region:
Small Business Development Centers
Seattle Southside Chamber of Commerce. Plus other chambers
African Chamber of Commerce
Tabor 100
WA Department of Commerce
Greater Seattle Partners
One Redmond
Startup 425
Clallam EDC
Numerous Cities
We are also publicizing webinars and assistance available through these organizations

Partnerships to Support Impacted Workers
Fair work center will provide workers with:
weekly webinars (in English and Spanish). pertinent information including:
unemployment, sick time, and changing implementation and guidelines
around emergency assistance.
Connecting workers with service provider to for assistance with
unemployment application, rental assistance/emergency assistance, job
search assistance and other support.
ongoing webinars will reach hundreds of people each time, offer live
translation services to make accessible for as many people as possible.
Materials are 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.

Outreach and Assistance for Impacted Employees
Port Jobs will provide workers with:
Sea-Tac Airport Job Opening : Five employers continuing to hire at Sea -Tac. 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. laid-off airport
workers may also apply for transportation and food-related positions outside the airport
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.
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.

Update on CARES Act Extensions
Expected passage of certain funding extensions week of April
13th
Focus on existing programs  e.g. Paycheck Protection
Program
Both chambers still planning to negotiate
a 4th package upon return to session
following Easter Recess (Senate reconvenes
April 20th)

Developing Port Priorities for Future Relief
Port staff tracking CARES Act implementation with internal and external stakeholders
Small business and individual family programs will need more funding support
Airports see continued impact will require continued support
Certain gaps  such as seaport relief  will be prioritized based on omission from CARES
Act
Revenue losses from cargo reductions and cruise postponement will
threaten other investments that could otherwise strengthen the economy
Port principles that guide our federal engagement on upcoming federal package:
Direct support for seaports similar to airport provisions in CARES Act
Continued robust funding for airports, extend CARES Act programs
Prioritize worker protections in future relief packages
Investments in seaport and airport infrastructure
Environmental resilience investments and incentives to promote low-carbon
transportation fuels
Continue and expand direct relief for impacted fisheries
Support for tourism and travel industries.

Next steps
Continue outreach efforts with tenants and stakeholders
Continue advocacy with congressional delegation on upcoming
relief packages
Work with partners to advance shared priorities for relief and
recovery
Questions?

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Appendix

Economic Injury Disaster Loan (EIDL) Program:
Maximum Amount of $2 million
Term is either 15 or 30 years
Interest rate is 3.75% for for-profit and 2.75% for non-profit
Payment deferral period is 1 year
Processing time  3 to 5 weeks


Washington Small Business Development Center                                                                          19

Economic Injury Disaster Loan (EIDL) Program:
Unsecured collateral up to $25K
Available collateral will be requested for over $25K
Available until December 31, 2020
Business owners can request for an increase in loan
amounts
No cost to apply

Washington Small Business Development Center                                                                          20

Economic Injury Disaster Loan Emergency Advance:
These grants provide an emergency advance of up to $10,000
to small businesses and private non-profits
$10K converts to an actual grant and should be deposited to
the bank account provided in 3-5 business days.
Can be used for payroll, to pay for sick leave, meet increased
production costs due to supply chain disruptions, or pay
business obligations, including debts, rent and mortgage
payments.

Washington Small Business Development Center                                                                          21

Paycheck Protection Program (PPP):
Provides small business with funds to pay up to 8 weeks of
payroll cost including benefits and taxes
the loan amount can be up to two months of your average
monthly payroll costs from the last year plus 25% of that
amount. The cap is $10 million
loan terms are an interest rate of 1% fixed and have a two-
year term
Independent Contractors cannot count as employees for
purposes of a PPP loan; they can apply for their own PPP loan

Washington Small Business Development Center                                                                          22

Paycheck Protection Program (PPP):
The amount of the loan can be up to two months of your
average monthly payroll costs from the last year plus 25% of
that amount.
The cap is $10 million. Seasonal and new businesses will use
a different applicable time period for their calculation
Loan payments are deferred for the first six months.
Loan proceeds cannot be forgiven for payroll costs above
$100,000 (annualized) for each employee, sole proprietor, or
independent contractor.
The loan terms are an interest rate of 1% fixed and have a
two-year term.
Washington Small Business Development Center                                                                          23