The Senate passed, 96-0, and sent to the house the massive $2 trillion economic stimulus package, seeking to give American families and businesses a bit of a shield against the economic damage done by the novel coronavirus pandemic.
Rep. Steny Hoyer, House majority leader, said the House will consider the measure on Friday. President Trump has said he will sign it immediately.
The package includes a federal excise tax waiver for hand sanitizer produced by distillers.
“We greatly appreciate Congress’ efforts to make this important change regarding the federal excise tax and hand sanitizer production. Hundreds of U.S. distillers are stepping up to produce hand sanitizer and they should not be hit with a huge tax bill for producing this much-needed item, especially at a time when so many of them are struggling,” said Chris Swonger, President/CEO, Distilled Spirits Council of the U.S.,
DISCUS has been working with Congress and the Alcohol & Tobacco Tax & Trade Bureau to resolve the issue. “We now need FDA” to permit distillers to use undenatured alcohol in its hand sanitizer formula as directed by the WHO Guidance, Swonger said.
He explained most beverage alcohol companies exclusively make products with undenatured alcohol and may not be able to access the required denaturing materials. Denatured spirits are those that are treated with bittering agents to make them unsuitable for human beverage consumption.
“We stand ready to work with FDA officials to resolve any concerns regarding the use of undenatured alcohol in hand sanitizer,” said Swonger.
The legislative package also includes important assistance for small businesses in the hospitality industry including:
- $349 billion for Small Business Administration (SBA) loans to businesses
- $10 billion for SBA emergency grants of up to $10,000 for immediate relief for small business operating costs
- $17 billion for SBA loans to cover 6 months of payments for small businesses with existing SBA loans
- A retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis
- 13 weeks of additional unemployment insurance for employees
- Up to $1,200 payments to Americans who make $75,000 or less (or $2,400 for a joint return for households making $150,000 or less) plus $500 per child with benefit tapering off for higher incomes
“We applaud the Senate and the Trump Administration for moving swiftly to reach a bipartisan deal to support American businesses and workers during this difficult time. While this bill represents a critical lifeline for distillers, they are in desperate need of additional economic relief,” said Swonger.
“We implore Congress not to forget struggling distillers who contribute to our nation’s vibrant hospitality, restaurant and tourism industries. The spirits industry employs 1.6 million people nationwide and generates $180 billion in economic activity in the United States. The closures of craft distilleries across the nation would be an incredible loss to the American economy,” Swonger added.
“We applaud the Senate and the Trump Administration for moving swiftly to reach a bipartisan deal to support American businesses and workers during this difficult time. While this bill represents a critical lifeline for distillers, they are in desperate need of additional economic relief,” said Swonger.
Ted Huber, co-owner of Starlight Distillery in Indiana and president of the DISCUS Craft Advisory Board, called the bill “an important first step to getting craft distillers back on their feet. Many have had to close their tasting rooms and suspend tours, forcing many to shut down production and lay off their workers.
“Craft distilleries are doing their part to ensure the health and safety of their communities, and many are even using their skills and knowledge to create hand sanitizer for first responders, healthcare workers, and others. We need to ensure distilleries survive during this crisis,” he said, adding:
“Distilleries make important economic contributions to their home states by increasing tourism, supporting agriculture, and boosting local economies.’
You can read the full text of the bill here.
Meanwhile, the number of cases in the U.S. passed 62,000, more than half of which are in New York. U.S. officials urged anyone leaving the New York metro area to self-isolate for 14 days.