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Following an unprecedented week for our country, the boating industry, like other sectors, continues to navigate these uncertain times. NMMA will continue to keep you updated on the latest government actions and how they impact your business. A few key highlights are below.

Last week, Congress passed the $2 trillion economic relief package, which President Trump has signed into law. Many of the boating industry's priorities were included in the package.
NMMA continues to advocate for the inclusion of additional industry priorities in upcoming discussions, including the removal of Section 301 and 232 tariffs and investments in recreation infrastructure.

Over half of all Americans are under stay at home orders from their state and local leaders. Our team continues to track state level executive orders as well as business and public land closures.

NMMA is now focused on working with the government and the boating industry to determine how businesses can access relief funds as quickly and efficiently as possible. This includes working alongside Congress to ensure that provisions protecting small businesses are included in existing and future stimulus packages. Additionally, our team is working to compile the most up-to-date research into the efforts states are making to provide short-term compensation programs that will help small business owners avoid laying off their employees while retaining skilled workers.

NMMA On The Ground

As the various components of the economic stimulus package quickly came together over the past week, the NMMA team collaborated with members of Congress and their staff to ensure that relief for small businesses and the broader boating industry remained top of mind. Many of the provisions NMMA advocated for were included in the package:

• Provides $350 billion to small businesses (boat building qualifies at less than 1,000 employees) to keep employees on the payroll and support operational expenses.
• Allows businesses to delay payment of payroll taxes.
• Sets up a national small business sustainability program to provide assistance to partially unemployed workers to support employee retention.
• Treasury will implement a new lending program targeted at medium-sized businesses (500-10,000 employees).
• Streamlines approval of and provides $562 million for the small business disaster loan program.
• Establishes a grant program to educate and advise businesses as they navigate the new programs that will assist in the recovery.
• Provides modifications for net operating losses to provide more critical cash flow.

Latest Updates

Administration

President Trump signed into law the $2 trillion economic relief package – formally known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act – over the weekend, following the U.S. House of Representatives’ vote to approve.

The Department of Labor released new guidance for employers explaining the paid sick leave and expanded family and medical provisions in the second legislative package that passed in response to the coronavirus situation. The fact sheet and question and answer document can also be found on NMMA’s COVID-19 resources page.

On the trade front, NMMA continues to urge the administration to remove all Section 301 tariffs on Chinese imports and Section 232 tariffs on aluminum and steel. Though President Trump has publicly denied that he is considering suspending tariffs, NMMA has learned that the administration is considering suspending tariffs for 90 days to help businesses through the uncertain period – a top priority for the industry.

There is growing bipartisan support to suspend tariffs for at least 90 days; Senator Chuck Grassley (R-IA), Chairman of the Senate Finance Committee, and Republican members of his committee urged the administration to provide a temporary deferral. Similarly, Senator Diane Feinstein (D-CA) and Rep. Kevin McCarthy (R-CA), House Minority Leader, called on Treasury Secretary Steven Mnuchin to “defer all tariffs for at least 90 days, or until the crisis passes.”

Congress

The House of Representatives approved the economic relief bill on Friday, two days after the Senate passed the bill by a vote of 96-0. The House tried to reach an agreement throughout the week to prevent lawmakers from returning to Washington, D.C. in an effort to limit travel. However, one House member asked for a roll call vote, sending House members from across the country into a scramble to get back in less than a day for a vote.

As a reminder, two versions of the CARES Act breakdown are available here:

• Comprehensive
• Topline Overview

In addition to economic assistance for businesses and employees, the bill included a provision to require full utilization of the Harbor Maintenance Trust Fund (HMTF)—a top priority for NMMA. At $9 billion, there is significant funding available in the HMTF, and now every dollar in the fund will go towards critical water infrastructure projects like dredging, jetties, and breakwater maintenance.

While a few priorities were not included in the package, Congress is discussing an additional relief bill, which could potentially have an infrastructure focus. Both the Senate and House have entered into recess for the next several weeks and will be back in late April. NMMA remains in constant contact with policymakers to ensure the industry is represented in subsequent economic aid measures.

An additional relief measure could take form in an infrastructure package heavily targeted towards roads and bridges. Broadband expansion—a longtime NMMA priority—will likely play a role. NMMA continues to work with outdoor recreation industry partners to ensure recreation infrastructure needs are addressed and ensure the recreation economy plays a role in reenergizing local economies across the country.

States

The economic relief bill includes $150 billion designated for state efforts to combat the COVID-19 pandemic and is mostly allocated by population. Additionally, local governments with populations of 500,000 or more are also eligible for aid, and any aid they receive is subtracted from the amount otherwise available to their state’s government. Importantly, the relief package Act also includes $340 billion in emergency funding to combat the outbreak, $274 billion going to state and local governments for specific purposes.

As of Friday evening, over half of all Americans are under stay at home orders from their state and local leaders. Most of these regulations come from the state level and ask all residents to stay home unless leaving for essential needs. A handful of states have issued orders only closing non-essential businesses’ physical locations. NMMA is tracking state level executive orders as well as business closures, read more here.

Outdoor Recreation Impacts

NMMA and ORR sent letters to every governor expressing the support the industry provides as well as asking them to consider outdoor recreation businesses as essential.

Resources of the Day

In addition, NMMA has launched a COVID-19 webpage to serve as a one stop shop for a variety of helpful resources for manufacturers, business owners, and the general public: https://www.nmma.org/coronavirus.

If you have questions, please email NMMA’s COVID-19 task force at [email protected].