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| Administration Turns to Private Firms to Help Process Small Business Aid | Administration Turns to Private Firms to Help Process Small Business Aid |
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| [Read our Coronavirus Relief Small Business F.A.Q.] | [Read our Coronavirus Relief Small Business F.A.Q.] |
| WASHINGTON — The Small Business Administration doled out tens of millions of dollars in contracts in recent days — including $50 million for a contract linked to the firm of a friend and donor to President Trump — to help it deal with the deluge of loan applications from businesses ravaged by the coronavirus-triggered economic collapse. | WASHINGTON — The Small Business Administration doled out tens of millions of dollars in contracts in recent days — including $50 million for a contract linked to the firm of a friend and donor to President Trump — to help it deal with the deluge of loan applications from businesses ravaged by the coronavirus-triggered economic collapse. |
| The flurry of contracts came as the S.B.A. was straining to quickly disseminate hundreds of billions of dollars through banks to millions of small businesses. It is a logistical and technical challenge that people who have worked with the traditionally low-profile agency say is unlike any it has faced previously, and one that the agency acknowledges requires private sector expertise to execute. | The flurry of contracts came as the S.B.A. was straining to quickly disseminate hundreds of billions of dollars through banks to millions of small businesses. It is a logistical and technical challenge that people who have worked with the traditionally low-profile agency say is unlike any it has faced previously, and one that the agency acknowledges requires private sector expertise to execute. |
| The Trump administration is leaning heavily on the private sector to help it carry out elements of the $2 trillion coronavirus relief package signed by President Trump last month. | The Trump administration is leaning heavily on the private sector to help it carry out elements of the $2 trillion coronavirus relief package signed by President Trump last month. |
| On Thursday, the Treasury Department, which is overseeing $500 billion in assistance, announced that it had tapped a trio of Wall Street firms — PJT Partners, Moelis & Company and Perella Weinberg Partners — to advise the government in its bailout of the airlines, cargo carriers and companies deemed critical to national security. | On Thursday, the Treasury Department, which is overseeing $500 billion in assistance, announced that it had tapped a trio of Wall Street firms — PJT Partners, Moelis & Company and Perella Weinberg Partners — to advise the government in its bailout of the airlines, cargo carriers and companies deemed critical to national security. |
| The New York Federal Reserve retained the investment firm BlackRock to run bond-purchasing programs connected to federal efforts to revive the economy, and Mr. Trump listed the firm’s chief executive, Laurence D. Fink, as among the Wall Street executives consulted about disseminating stimulus funds to corporations. | The New York Federal Reserve retained the investment firm BlackRock to run bond-purchasing programs connected to federal efforts to revive the economy, and Mr. Trump listed the firm’s chief executive, Laurence D. Fink, as among the Wall Street executives consulted about disseminating stimulus funds to corporations. |
| The contracts and consultations have raised questions about favoritism, especially for the financial industry, which critics hold responsible for the last big economic crisis in 2008. | The contracts and consultations have raised questions about favoritism, especially for the financial industry, which critics hold responsible for the last big economic crisis in 2008. |
| Along with the Treasury Department, the Small Business Administration has been given the job of holding off the worst of the economic damage in this crisis. The S.B.A. has been tasked with spearheading the small business side of coronavirus recovery. | Along with the Treasury Department, the Small Business Administration has been given the job of holding off the worst of the economic damage in this crisis. The S.B.A. has been tasked with spearheading the small business side of coronavirus recovery. |
| In addition to administering a $349 billion loan program created by the stimulus package, which began accepting a flood of applications on Friday, the agency had already been struggling with a surge in coronavirus-related loan applications through other programs, including its disaster loan program. The stimulus bill included $562 million for disaster loans “to prevent, prepare for, and respond to coronavirus.” | In addition to administering a $349 billion loan program created by the stimulus package, which began accepting a flood of applications on Friday, the agency had already been struggling with a surge in coronavirus-related loan applications through other programs, including its disaster loan program. The stimulus bill included $562 million for disaster loans “to prevent, prepare for, and respond to coronavirus.” |
| But last week, the website for business owners to apply for disaster loans related to the coronavirus reportedly was shut down because of security issues. | But last week, the website for business owners to apply for disaster loans related to the coronavirus reportedly was shut down because of security issues. |
| Jennifer Kelly, a spokeswoman for the S.B.A. said in a statement that “this unprecedented global pandemic requires an unprecedented public-private response, and every hurdle that impedes, slows, or otherwise frustrates that response is being cleared in consultation with legal and ethics officials.” | Jennifer Kelly, a spokeswoman for the S.B.A. said in a statement that “this unprecedented global pandemic requires an unprecedented public-private response, and every hurdle that impedes, slows, or otherwise frustrates that response is being cleared in consultation with legal and ethics officials.” |
| The agency has turned to a range of companies to buttress its ability to process the disaster loans as well as the new $349 billion loan program for small businesses that opened on Friday. | The agency has turned to a range of companies to buttress its ability to process the disaster loans as well as the new $349 billion loan program for small businesses that opened on Friday. |
| On Sunday, the agency’s Office of Disaster Assistance issued an emergency $50 million contract to support its processing of coronavirus disaster loans to a Virginia-based government contractor called RER Solutions. It is partnering on its S.B.A. work with Rocket Loans, a Detroit-based company that provides consumer loans online. | On Sunday, the agency’s Office of Disaster Assistance issued an emergency $50 million contract to support its processing of coronavirus disaster loans to a Virginia-based government contractor called RER Solutions. It is partnering on its S.B.A. work with Rocket Loans, a Detroit-based company that provides consumer loans online. |
| Rocket Loans is part of a family of companies founded by the billionaire Dan Gilbert, who also co-founded Quicken Loans, which donated $750,000 to Mr. Trump’s inauguration and $67,000 to the committee that hosted the 2016 Republican convention. Mr. Gilbert has visited the White House, where Mr. Trump singled him out as “a great friend of mine, a supporter and great guy.” | Rocket Loans is part of a family of companies founded by the billionaire Dan Gilbert, who also co-founded Quicken Loans, which donated $750,000 to Mr. Trump’s inauguration and $67,000 to the committee that hosted the 2016 Republican convention. Mr. Gilbert has visited the White House, where Mr. Trump singled him out as “a great friend of mine, a supporter and great guy.” |
| Quicken Loans last year paid $32.5 million to settle a years-old lawsuit in which it was accused by the Justice Department of making hundreds of improper loans through the Federal Housing Administration’s lending program, costing the agency millions of dollars. | Quicken Loans last year paid $32.5 million to settle a years-old lawsuit in which it was accused by the Justice Department of making hundreds of improper loans through the Federal Housing Administration’s lending program, costing the agency millions of dollars. |
| The S.B.A. contract with RER Solutions, which is for “data analysis and loan recommendation services for Covid-19,” appears to be related to a $10-million-per-year contract that RER signed with the S.B.A. in late 2018 for similar services related to processing disaster loan applications. Rocket Loans was a subcontractor on that work. | The S.B.A. contract with RER Solutions, which is for “data analysis and loan recommendation services for Covid-19,” appears to be related to a $10-million-per-year contract that RER signed with the S.B.A. in late 2018 for similar services related to processing disaster loan applications. Rocket Loans was a subcontractor on that work. |
| “We are stepping up to help solve problems under an existing contract,” said Aaron Emerson, a spokesman for Rocket Loans, adding “we were tapped to help the S.B.A. process applications.” | “We are stepping up to help solve problems under an existing contract,” said Aaron Emerson, a spokesman for Rocket Loans, adding “we were tapped to help the S.B.A. process applications.” |
| Mr. Emerson and Errin Green, the chairwoman and chief executive of RER Solutions, said their firms had nothing to do with the disaster-loan website that reportedly experienced problems last week. | Mr. Emerson and Errin Green, the chairwoman and chief executive of RER Solutions, said their firms had nothing to do with the disaster-loan website that reportedly experienced problems last week. |
| Neither RER, nor Rocket Loans, would say how much of the money from the work would go to Rocket Loans. | Neither RER, nor Rocket Loans, would say how much of the money from the work would go to Rocket Loans. |
| Representatives from Rocket Loans have reached out in recent days to outside law firms and others for help in expanding the company’s operations to handle the government work, according to a person with direct knowledge of the effort. | Representatives from Rocket Loans have reached out in recent days to outside law firms and others for help in expanding the company’s operations to handle the government work, according to a person with direct knowledge of the effort. |
| Updated June 24, 2020 | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Frank Taylor, whose company, The First Choice, bid against RER Solutions for the S.B.A. contract in 2018 and unsuccessfully challenged the decision to award it to RER, said that the systems created by RER and Rocket Loans “were not set up to take the volume of S.B.A. loans” likely to flood the system from businesses and people affected by coronavirus. | Frank Taylor, whose company, The First Choice, bid against RER Solutions for the S.B.A. contract in 2018 and unsuccessfully challenged the decision to award it to RER, said that the systems created by RER and Rocket Loans “were not set up to take the volume of S.B.A. loans” likely to flood the system from businesses and people affected by coronavirus. |
| “And now it’s biting them in the butt,” he said. | “And now it’s biting them in the butt,” he said. |
| Mr. Taylor asserted Rocket Loans did not have a track record in government contracting sufficient to warrant trusting it with the S.B.A. contract, and suggested that Mr. Gilbert’s political connections may have played a role in his company landing the work. | Mr. Taylor asserted Rocket Loans did not have a track record in government contracting sufficient to warrant trusting it with the S.B.A. contract, and suggested that Mr. Gilbert’s political connections may have played a role in his company landing the work. |
| “I’ve learned in this business that politics plays a role in every aspect of the federal government, so it would not surprise me,” said Mr. Taylor, who described himself as a Democrat. | “I’ve learned in this business that politics plays a role in every aspect of the federal government, so it would not surprise me,” said Mr. Taylor, who described himself as a Democrat. |
| Mr. Emerson, the Rocket Loans spokesman, pointed out that Mr. Gilbert’s companies had donated to Democratic committees, as well, though those donations pale in comparison to donations by Mr. Gilbert and Quicken to Republicans. | Mr. Emerson, the Rocket Loans spokesman, pointed out that Mr. Gilbert’s companies had donated to Democratic committees, as well, though those donations pale in comparison to donations by Mr. Gilbert and Quicken to Republicans. |
| “Our support of both Republican and Democratic parties is wholly irrelevant,” Mr. Emerson said. “We build great products and deliver unmatched service.” | “Our support of both Republican and Democratic parties is wholly irrelevant,” Mr. Emerson said. “We build great products and deliver unmatched service.” |
| S.B.A. has issued contracts to other firms to provide other services related to processing applications from businesses hit by coronavirus. | S.B.A. has issued contracts to other firms to provide other services related to processing applications from businesses hit by coronavirus. |
| Late last month, its Office of Disaster Assistance hired a company called Liveops to help with customer service related to its coronavirus response. Last week, the office signed a $5.3 million deal for Salesforce software licenses “to support Covid-19.” The next day, it had hired a firm called Agility Technologies for more than $2 million dollars to work on a replacement for its Disaster Loan Application Portal, according to contracting records. | Late last month, its Office of Disaster Assistance hired a company called Liveops to help with customer service related to its coronavirus response. Last week, the office signed a $5.3 million deal for Salesforce software licenses “to support Covid-19.” The next day, it had hired a firm called Agility Technologies for more than $2 million dollars to work on a replacement for its Disaster Loan Application Portal, according to contracting records. |
| The private sector influence goes beyond the disaster loans system, as the agency becomes the hub for an additional $349 billion in loans to small businesses that are trying to make payroll. | The private sector influence goes beyond the disaster loans system, as the agency becomes the hub for an additional $349 billion in loans to small businesses that are trying to make payroll. |
| On Sunday, the agency inked a $95,000 deal for “social media support services” related to the virus from a Washington, D.C., public relations firm. The next day, it signed a contract worth more than $9 million dollars for an “emergency CAFS hardware refresh,” a likely reference to its Capital Access Financial System. | On Sunday, the agency inked a $95,000 deal for “social media support services” related to the virus from a Washington, D.C., public relations firm. The next day, it signed a contract worth more than $9 million dollars for an “emergency CAFS hardware refresh,” a likely reference to its Capital Access Financial System. |
| Other companies are likely to be involved in the agency’s response to the crisis. A spokesman for Microsoft said in a statement that it was “actively discussing how we can extend our support further with additional agencies including the S.B.A.” | Other companies are likely to be involved in the agency’s response to the crisis. A spokesman for Microsoft said in a statement that it was “actively discussing how we can extend our support further with additional agencies including the S.B.A.” |
| Jo Becker contributed reporting from Los Angeles. | Jo Becker contributed reporting from Los Angeles. |