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April 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

U.S. Small Businesses May Get More COVID-19 Emergency Funding

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.

https://aviationweek.com/air-transport/aircraft-propulsion/us-small-businesses-may-get-more-covid-19-emergency-funding

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  • In War, Chinese Shipyards Could Outpace US in Replacing Losses; Marine Commandant

    June 18, 2020 | International, Aerospace, Naval, Land

    In War, Chinese Shipyards Could Outpace US in Replacing Losses; Marine Commandant

    “Replacing ships lost in combat will be problematic," Marine Commandant Gen. David Berger writes in a forthcoming paper. "Our industrial base has shrunk while peer adversaries have expanded their shipbuilding capacity. In an extended conflict, the United States will be on the losing end of a production race.” By PAUL MCLEARYon June 17, 2020 at 4:44 PM WASHINGTON: The Commandant of the Marine Corps, Gen. David Berger, dismisses current Marine and Navy plans for amphibious ships as “obsolete,” and worries that in any conflict, China could replace damaged ships faster than the US in a draft operating concept obtained by Breaking Defense. The warnings are the latest in a campaign waged by the reform-minded Berger to overhaul how the Marine Corps trains and equips to meet the challenges of China and other advanced nations, while working more closely with the other armed services and allies around the globe. In the sharply-worded 22-page document, Berger rejects war plans anticipating a Cold War-style confrontation in which huge ships can creep close to shore free from the threat of precision-guided munitions being launched from batteries deep inland. He calls the current configuration of amphibious ships “the most obvious manifestation of this obsolete paradigm” in a draft document obtained by Breaking Defense. In an unsigned draft of the unreleased report, “Naval Campaigning: The 2020 Marine Corps Capstone Operating Concept,” Berger underlines the need for new thinking about how the Marine Corps and Navy will fight an advanced Chinese military that can control islands, coastlines, and vast swaths of the sea with aircraft carriers, a swelling blue ocean fleet and long-distance precision munitions. The old way of thinking “is also exemplified by our current amphibious warships and maritime prepositioning ships, which are large and built for deployment efficiency rather than warfighting effectiveness,” he writes. “These superb, multipurpose ships are extremely expensive—meaning we've never had the desired number.” Berger also raises significant concerns about the United States' ability to replace any combat losses, even in a short, sharp conflict. “Replacing ships lost in combat will be problematic, inasmuch as our industrial base has shrunk, while peer adversaries have expanded their shipbuilding capacity. In an extended conflict, the United States will be on the losing end of a production race—reversing the advantage we had in World War II when we last fought a peer competitor.” The stark admission comes as the Navy's shipyards struggle under the disruptions caused by COVID-19, leading the service to order an emergency call up over 1,600 Reservists to fill labor shortages to do repair work on aircraft carriers and submarines in a desperate effort to get them back out to sea as soon as possible. Berger takes care not to blame the Navy for building expensive, relatively slow amphibious ships to carry Marines across the globe. “These issues should not be construed as a criticism of our Navy partners who built the fleet—to include the types of amphibious warfare and maritime prepositioning ships the Marine Corps asked for—that was appropriate to the security era within the constraints of finite resources.” But that era is now over the Corps wants to build a more dynamic “inside force” of smaller ships that can operate within range of Chinese and Russian weapons and pack a potent offensive punch while offering more and smaller targets than the current amphibious fleet. But these small ships won't replace their bigger cousins — they'll come in addition to them, creating new issues for both Navy budgets and the limited number of shipbuilders who can produce hulls for the sea service. The ships will also need ports to call home. “One can think of basing forces and lots of smaller vessels in theater, but this raises the issue of where to put everything and doesn't seem to be a ready solution that replaces divestiture of large ships,” said Dakota Wood, senior research fellow for defense programs at The Heritage Foundation. In recent weeks, the Navy met with shipbuilders to talk about plans for a new class of logistics ship that can operate under fire and resupply Marines deep within the range of enemy precision weapons. The Next Generation Medium Logistics Ship would resupply both ships at sea, as well as small, ad hoc bases ashore. The ship fits within plans Berger has made to stand up several Marine Littoral Regiments designed to move fast and have their own integrated anti-air and possibly anti-ship weapons. The Corps and Navy are also looking to buy as many as 30 Light Amphibious Warships in coming years, which would be much smaller than the current amphibious ships. The draft document doesn't include any those specifics. But Berger has already done that work in previous statements and documents, where he outlined plans: to rethink the role that large amphibious ships play in future; divest of M1 Abrams tanks; cut artillery units; slash helicopter squadrons; and reassess the role F-35s might play in future operations. Berger has admitted he realizes he needs to undertake this transition within existing budgets, leading him to call for cutting tanks, helicopters, and even some end strength. But for the Navy, Wood said, “I think much of this will be added cost because it must maintain current capabilities (types of ships) while developing new capabilities. It does not have the luxury of getting rid of current before new replacements are ready.” A significant omission in all of these plans is the absence of a larger, coherent naval strategy. The 30-year shipbuilding plan, due to Congress in February, continues to be missing in action. A major Navy force structure review was rejected by Defense Secretary Mark Esper earlier this year. The force structure review, currently being taken apart by Deputy Defense Secretary David Norquist, is expected this fall. The Navy's plans are in such a fluid state that Vice Adm. Stuart Munsch, head of the service's Warfighting Development office, cited Chinese attention as a reason to decline to give a progress report in a call with reporters earlier this month. “I'm not going to divulge our intentions,” he said. “I'm very conscious that, if I say anything public, I'm an authoritative source and the Chinese will key on what I say, and likewise any kind of public-facing document that we put out as well.” Pressed to explain what the Navy's strategy for operating in a world with competing great powers looks like, Munsch said, “I'm not sure how you would see that keeping our intentions for warfighting classified is something you would want as an American citizen.” While Berger continues to push out papers and strategies for pushing the Marines into the future, the Navy, which will provide much of the lift he needs, is still at the drawing board. https://breakingdefense.com/2020/06/in-war-chinese-shipyards-can-outpace-us-in-replacing-losses

  • Russian arms industry banks on Dubai defense fair to show viability

    November 14, 2023 | International, Aerospace, C4ISR

    Russian arms industry banks on Dubai defense fair to show viability

    State-owned Rosoboronexport had announced a new counter-drone weapon to be on display, but the equipment was nowhere to be seen.

  • Northrop Grumman Delivering Next Generation Ammunition Capability to US Army

    July 10, 2020 | International, Land

    Northrop Grumman Delivering Next Generation Ammunition Capability to US Army

    Plymouth, Minn. – July 9, 2020 – Northrop Grumman Corporation (NYSE: NOC) received a contract award from the U.S. Army's Project Manager for Maneuver Ammunition Systems (PM-MAS) to develop the next generation airburst cartridge for the 30mm XM813 Bushmaster® Chain Gun®. The gun and ammunition function as a system and will provide greater capability for the Army's up-gunned Stryker Brigade Combat Team fleets. “Northrop Grumman is leading the way in developing new ammunition types that provide existing gun systems with increased capabilities to defeat difficult targets ranging from threat drones to targets in defilade positions,” said Dan Olson, vice president, armament systems, Northrop Grumman. “Our air bursting technology is proven and the addition of this new round will provide the Army with an even more capable gun system for our soldiers.” The 30mm x 173mm airburst cartridge will feature a contact set fuze design with three operational fuze modes: Programmable Airburst, Point Detonation and Point Detonation with Delay. The initial contract will fund the completion of the engineering and manufacturing development (EMD) phase and final qualification by the Army. Northrop Grumman will also begin deliveries this year of the first airburst type cartridge to support the U.S. Army's Germany-based, 2nd Cavalry Regiment's Stryker Infantry Carrier Vehicle (ICV) fleet that were recently ‘up-gunned' with the company's 30mm Bushmaster® Chain Gun®. The new airburst cartridge in development also will support additional U.S. Army platforms to include, but not limited to, the future Stryker Brigade Combat Teams. The newly fielded gun system nearly doubles the range of the platform's current .50-caliber machine gun. The addition of an airburst cartridge provides a complete family of ammunition that arms the crew to meet the challenges posed by peer and near-peer adversarial threat systems. Northrop Grumman solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Our 90,000 employees define possible every day using science, technology and engineering to create and deliver advanced systems, products and services. Media Contact Jarrod Krull +1 (763) 744-5371 jarrod.krull@ngc.com View source version on Northrop Grumman: https://news.northropgrumman.com/news/releases/northrop-grumman-delivering-next-generation-ammunition-capability-to-us-army

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