April 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security
Sean Broderick
WASHINGTON—The Trump Administration has asked Congress for an additional $250 billion in small-business payroll loan funding, providing more cash to the coronavirus pandemic emergency funding program that many small aerospace suppliers are expected to tap.
U.S. Treasury Secretary Steve Mnuchin tweeted the news April 7, confirming that, “at the direction of President Trump,” he has asked Democrat and Republican leaders in both the House of Representatives and Senate for more Paycheck Protection Program (PPP) funding “to make sure small businesses get the money they need!”
The PPP, part of the March 27 Coronavirus Aid, Relief, and Economic Security (CARES) Act, was set up to quickly get funds to eligible businesses to cover eight weeks of payroll costs as well as most rent, utility and mortgage-interest expenses. Companies can apply for a one-time PPP loan of up to 2.5 times their average monthly 2019 payroll, up to a maximum $10 million. So long as 75% of the funds are used for payroll costs, the loans do not have to be repaid, making them de facto grants.
The CARES Act allocates $349 billion to the program, but early popularly suggests that more funding may be needed to meet demand. The Small Business Administration (SBA) processed more than $70 billion in loans in PPP's first three days after the program opened April 3, though it did not say how much of that has been funded. Some 250,000 small businesses, out of an estimated 30 million, have applied for PPP funds.
Mnuchin said he has spoken with Congressional leaders and is confident that he has bipartisan buy-in.
“We look forward to the Senate passing that on [April 9], and the House passing that on [April 10]” Mnuchin told reporters during an April 7 media briefing.
Additional funding could be approved quickly. Senate Majority Leader Mitch McConnell (R-Kentucky) said in a statement that he would work with Mnuchin and fellow Senate leaders to approve further funding within days. House Democrats are already working on a larger bill, which leader Nancy Pelosi calls CARES 2, that includes more PPP funding.
PPP loan applications, submitted through the SBA Small Business Administration (SBA) and funded by participating lenders, began rushing in as soon as the program opened April 3. SBA Mnuchin said April 7 that more than 3,000 lenders are onboard, with additional institutions expected to participate. The program experienced some early hiccups, due in part to its scale and how quickly it has come together. CARES became law on March 27, and interim rules on how PPP would work were issued late April 2, just hours before applications were set to start.
The PPP's broad applicability, lack of requirements for guarantees or other collateral, and de facto grant properties—the loans become forgivable if guidance is followed—have made it a catch-all for many small businesses. The general SBA limit for a small business is 500 employees, but it is based on staff or revenue limits set in the North American Industry Classification System. Many aviation businesses, aircraft and engine parts makers and maintenance providers, have limits above 500 employees. The PPP's potential reach and theoretically streamlined application and fulfillment times mean industry trade associations that represent smaller businesses are urging their members to examine PPP loans.
November 16, 2022 | International, Aerospace
About half of the aircraft studied never reached their annual readiness goal between fiscal 2011 and 2021, despite billions of dollars in spending.
April 23, 2020 | International, C4ISR
Aaron Mehta and Valerie Insinna The U.S. Air Force is in the early stages of developing strategies to “mitigate” the damage expected to occur to Global Positioning System capabilities following the Federal Communication Commission's approval of a spectrum request by Ligado Networks, according to the service's top uniformed officer. On Wednesday, Air Force Chief of Staff Gen. David Goldfein said he was “very concerned about the Ligado decision,” adding those concerns are shared with Gen. Jay Raymond, the first head of the U.S. Space Force. “We as a nation, and I would offer as a [world], rely on GPS to do so much that affects far more than military operations,” Goldfein said. “This is our quality of life. This is how we run businesses. This is how we fly airplanes. This is the ATM that requires that timing signal to get money. This is the blue dot on your phone that allows you to get from point A to point B, so we have come to just rely completely on GPS.” On Monday, the FCC voted 5-0 in favor of Ligado's plan, which would allow the company to use L-band — a range of frequencies between 1 to 2 GHz, on which GPS relies in order to penetrate weather and dense vegetation. The company wants to use L-band as part of its plan to expand America's 5G capabilities, or next-generation connectivity. The Defense Department and other government agencies have opposed the proposal for almost a decade over concerns it would impact GPS. C4ISRNET first broke the news April 10 that the FCC would move forward with Ligado's request. “The best way I've heard it described — I'm a philosophy major and this works for me — if you're trying to have a quiet conversation and in the next room is a 500-watt speaker blaring music at you: That's a visual of what potentially could be the interference with this GPS signal that absolutely has got to be pristine, and the world relies on," Goldfein said. "So I am very concerned about it, and [Chief of Space Operations for the U.S. Space Force Gen. John “Jay”] Raymond and I are looking at different mitigation steps.” Goldfein didn't go into details about what those steps might entail. Later in the day, Mark Lewis, the Defense Department's director of research and engineering for modernization, said he hadn't talked with Goldfein yet on next steps, but expressed similar sentiments about the Ligado plan. “It's obviously a concern. Our ability to operate not only in space but in spectrum is critical. So I guess what I would tell you is right now we're considering what the implications will be and considering what the impacts will be,” Lewis said at an event hosted by the Mitchell Institute. It's something “we're working pretty actively,” Lewis added. Outside of the technical mitigation efforts, there may be policy efforts underway to try and block L-band use by Ligado. In an exclusive op-ed for C4ISRNET, leaders of the House and Senate Armed Services committees warned that Ligado's plan could ultimately “cost taxpayers and consumers billions of dollars and require the replacement of current GPS equipment just as we are trying to get our economy back on its feet quickly.” “We encourage the FCC to withdraw its approval of Ligado's application and take this opportunity to work with the NTIA [National Telecommunications and Information Administration] and other federal agencies, including the departments of Defense and Transportation, to find a solution that will both support commercial broadband expansion and protect national security assets. Moreover, we expect the FCC to resolve Department of Defense concerns before moving forward, as required by law,” the lawmakers wrote. “If they do not, and unless President [Donald] Trump intervenes to stop this from moving forward, it will be up to Congress to clean up this mess.” https://www.c4isrnet.com/battlefield-tech/2020/04/22/air-force-works-to-mitigate-ligado-deals-impact-on-gps/
October 24, 2023 | International, Land
NATO is pushing its members to overcome protectionist tendencies and agree on a single standard for artillery ammunition to boost production of urgently needed 155mm shells while driving down prices that have soared since Russia's invasion of Ukraine.