On Monday, U.S. Rep. Green (R-TN-07) told the feds that coronavirus relief programs should follow past federal precedents and not exclude Tennessee’s small colleges, which are currently disqualified because of student workers.
Those federal programs, Green said, include the Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP).
Green said in a press release that he sent his request to the Treasury Department and Small Business Administration as it pertains to EIDLs and PPP.
“EIDLs, the Mid-Size Business Loan Program, and the PPP are all forms of aid that can help our schools make it through this tough time. Unfortunately, because these programs are for employers with 500 or fewer employees, many small colleges will fall through the cracks due to their student workers being counted under the eligibility requirements for these loans,” Green said in the press release.
“America’s small colleges and universities need relief just like everyone else. If student workers are counted as employees under these relief programs, it’s our colleges and the communities they support that will be hurt the most.”
In a letter to federal officials, attached to the press release, Green said COVID-19 has closed higher education institutions, imposed hardship, and put teachers and students “under an extreme amount of stress.”
“Budgets are under strain and endowments are struggling, with many small colleges hurt the most. The federal government’s response will have a huge impact on how our higher institutions fare throughout this crisis,” Green said.
“The Coronavirus Aid, Relief, and Economic Security (CARES) Act states that these programs are for employers with 500 or fewer employees, however, there is precedent among multiple federal agencies that student workers are not counted as employees. This includes the Department of Labor’s Wage and Hour Division under the Fair Labor Standards Act, IRS regulations for Student FICA and the Federal Unemployment tax exceptions, and the Department of Education’s Integrated Postsecondary Education Data System.”
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Chris Butler is an investigative journalist at The Tennessee Star. Follow Chris on Facebook. Email tips to [email protected].
Come one!! Come all!! Get your “free” federal welfare money. To heck with the future of the country.