Schneider Legislation to Help Small Business, Address Shortages of Medical Devices Included in Final Coronavirus Aid, Relief and Economic Security (CARES) Act

March 30, 2020
Press Release

Three legislative priorities previously introduced by Congressman Brad Schneider (IL-10) to help small businesses and address shortages of medical devices were incorporated into the final version of the Coronavirus Aid, Relief and Economic Security (CARES) Act, which passed the Senate and House with overwhelming bipartisan support and was signed into law on Friday, March 27, 2020.

"Through negotiations between both parties, House Democrats refocused the CARES Act on the workers and families, Main Street businesses, and state and local governments on the frontlines of this crisis that need our help the most," said Schneider.

"I am particularly pleased that legislation I previously introduced and championed throughout the negotiation process was included in the final package that was signed into law. Strengthening the reporting requirements on medical devices will help the FDA anticipate and mitigate shortages in the supply chain, including for devices in critical need like ventilators. Allowing small businesses to use a five-year carryback period for net operating losses offers Main Street businesses the tax flexibility to withstand and recover from the challenges created by coronavirus. Finally, temporarily waiving some requirements for Women Business Centers ensures these programs can continue serving our communities during this time of need."

Specifically:

  • The CARES Act includes language to help mitigate shortages in the medical device supply chain, including for devices such as ventilators, by requiring manufacturers to report an expected shortage of a critical or life-saving medical device. This is similar language to H.R.6062, which Schneider introduced in March 2, 2020.

  • The CARES Act includes language enacting a 5-year carryback provision on net operating losses (NOLs) similar to H.R. 6391, introduced by Schneider to allow small businesses with fewer than 250 employees to spread NOLs over a "carryback" period of five years, to provide much needed tax flexibility to hardworking Americans.

  • The CARES Act includes language to waive the matching funding requirement for 3-months for Women's Business Centers to ensure that these divisions of the Small Business Administration are positioned to help women business owners through this crisis. This is similar to H.R. 6367, introduced by Schneider.