Letter to Mitch McConnell, Senate Majority Leader, and Chuck Schumer, Senate Minority Leader - Warren Joins Jones to Urge Senate Leadership to Include Paycheck Security Proposal in Next COVID-19 Relief Package

Letter

Dear Senate Majority Leader McConnell and Senate Minority Leader Schumer:

We applaud the important and swift steps Congress took to provide immediate relief to Americans
impacted by the coronavirus. As you consider policies to address the economic and health
implications of the coronavirus in a future package, we request our proposal, the Paycheck Security
Program, be incorporated as it would help prevent further job losses and alleviate the economic
uncertainty facing American workers and businesses.

The Paycheck Security Program will use existing infrastructure to work to help companies
maintain wages and benefits of employees of affected businesses and non-profits until the
economic and public health crisis is resolved. The proposal will help cut some of the red tape that
is currently slowing down relief to the American workers who need it most.

Administered by the Treasury Department, the Paycheck Security Program would cover the wages
and benefits of furloughed or laid off employees of affected businesses and non-profits that have
experienced a drop in revenues of at least 20 percent. Grants will cover salaries and wages up to
$90,000 for each furloughed or laid off employee, plus benefits, as well as up to an additional 20
percent of revenues to cover fixed operating costs such as rent, utilities, insurance policies, and
maintenance.

Companies receiving these grants must commit to a number of restrictions including maintaining
pay and benefits of rank-and-file workers and offering to bring back workers laid off since
February 1st the opportunity to go back to participate in the program at prior level of compensation.
In addition, they cannot engage in stock buybacks, pay dividends or management fees, cap CEO
pay at 50 times the median wage of their workforce and protect collective bargaining agreements.

During this tumultuous time, working people should not have to also worry about applying for
unemployment, finding new health care, or losing their connection to their employer. This proposal
will help businesses that cannot access a loan program because they don't have a strong banking
relationship or the ability to fill out all of the complicated paperwork, to stay in business during
the health crisis and as soon as it lifts, reopen their stores and resume their operations.

American businesses and their employees are the heart and soul of our communities. Please
consider including this program in the next coronavirus package to keep our communities thriving
and vibrant.

Sincerely,