Government

Unmatched Resolve: Reflections on a 56-County Road Trip

22 January 2021
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By Brent Donnelly

As director for the U.S. Small Business Administration (SBA) Montana District, I have the unique opportunity to work with entrepreneurs and small business owners across Montana to help provide capital and connections that support growth for our state’s businesses. This year has kept my team busy as we’ve worked with local lenders to secure forgivable loans for 24,000 small business owners through the Paycheck Protection Program (PPP) and other SBA lending programs designed to help keep businesses afloat during the extreme challenges we’ve faced.

 Earlier this month, I approached my team and told them that I wanted to end the year on a positive note – doing something awesome to encourage small business owners while also challenging Montanans to shop local. Through this, we created the Peaks to Plains Business Resiliency Tour, a 3,400-mile road trip that took us to small businesses in all 56 Montana counties within seven days. This journey allowed us to hear incredible stories of grit, ingenuity, and community commitment from business owners in every county of the state.

 In one county, a business owner told us how members of their community came in to buy gift certificates, only to rip them up – they just wanted to do their part to ensure the store would get through the pandemic. A floral boutique told us how they had put in a sizeable flower order before the local prom was cancelled. With the significant revenue-generating event no longer existent, the flower shop encouraged local residents to buy a flower and give it to someone as a random act of kindness. Within hours, the flowers were sold out. A clothing store set up a “blessing board” that allowed shoppers to provide discounts to certain groups of people like healthcare workers, first responders, pastors, and teachers. More businesses than ever took to social media to promote their goods and services, and restaurants pivoted business models in order to safely provide food services for their hometowns. Local lenders went above and beyond to assist businesses with lending programs and the financial complexities imposed by the pandemic. This year has truly demonstrated how Montanans come together during challenging times. Neighbors help neighbors. Communities support their own. 

 While nearly every business told us of the incredible ways their community sustained them, we heard stories of struggle and tragedy, too. We were moved as the owner of a rural coffee shop told us how the coronavirus took the life of her mom and business partner this year despite the implementation of aggressive health precautions. As we listened to her story, we watched customers come the shop and break into tears as they embraced the owner and told her how much her mom and their business meant to the town.

These stories – and dozens of others – demonstrate the essential qualities of this sector, because in Montana, small businesses ARE our communities. Statewide, 99.3 percent of businesses are classified as “small businesses,” and that pool employs more than 65 percent of our state’s workforce. To put it simply, in order for Montana to succeed, small businesses must succeed.

 The SBA has played a pivotal role in supporting small businesses this year amidst the pandemic, but no amount of aid compares to customers in stores or families in restaurants. Many locally owned retailers earn roughly 50 percent of annual revenues during the period between Thanksgiving and Christmas, so it’s critical that people continue to shop and eat local in the coming weeks.

 Soon we’ll welcome in a new year where we’ll share more of the incredible stories we heard in the last few weeks. While it’s impossible to predict what 2021 holds, I’m confident that Montana small businesses will sustain the unmatched resolve that has carried them through this year. I’m hopeful people will continue shopping and dining locally. And I, along with Kelly, Rena, Tom, Martin, and Andy in the SBA Montana District, remain absolutely committed to working with unyielding intensity to deliver support and resources to Montana entrepreneurs.

Brent Donnelly is the Small Business Administration District Director for Montana.

Second Round Open of Paycheck Protection Program

22 January 2021
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The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has  re-opened the Paycheck Protection Program (PPP) for new borrowers and certain existing PPP borrowers. To promote access to capital in underserved communities, only community financial institutions could initially make PPP Loans starting on January 11.  The PPP is now open to all participating lenders.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

“The PPP was an incredible shot in the arm for small businesses last year, and this second wave of financial support will especially be a boost to businesses in rural and underserved communities,” said Dan Nordberg, SBA’s National Director of Rural Affairs and Region VIII Administrator. “With a targeted opening, SBA is prioritizing and extending relief to impacted business owners who need it the most. If you own or operate a small business, I strongly encourage you to look into this opportunity for assistance. As always, our SBA team is eager to answer questions, offer help through the process, and connect business owners and entrepreneurs with tools for long-term health and success.”

Key PPP updates include:

*   PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;

*   PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;

*   The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;

*   The PPP provides greater flexibility for seasonal employees;

*   Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and

*   Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

*   Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;

*   Has no more than 300 employees; and

*   Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Red Tape Under Attack

22 January 2021
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Signing his first executive order, Governor Greg Gianforte established the Red Tape Relief Task Force.

 Governor Gianforte, who campaigned on the promise of conducting a top-to-bottom regulatory review of all state agencies, will rely on the task force to identify excessive, outdated, and unnecessary regulations. Lieutenant Governor Kristen Juras will lead the task force.

Montana small businesses are saddled with over 60,000 regulations.

“The message from Montana small business owners, farmers, and ranchers has been loud and clear: unnecessary red tape is out of control, and they need help. Today we’re taking our first steps to provide them with much needed red tape relief, and I’m grateful to Lieutenant Governor Juras for leading the charge,” said Gianforte said after signing the executive order.

The Red Tape Relief Task Force will present its report and proposals to the governor by August 1, 2021.

New State Budget Proposed by Governor

22 January 2021
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Last week, Governor Greg Gianforte released his proposed budget for state government for the 2023 biennium.

The plan would fulfill many of the policy priorities he outlined in his “Montana Comeback Plan” with the priorities of getting the economy going again, safely opening businesses, and getting Montanans back to work.

The budget provides $50 million in broad-based and targeted tax relief, including cutting the top marginal income tax rate to 6.75%. In 2019, Montanans who earned a taxable income of more than $18,400 paid the top marginal rate of 6.9%.

“This roadmap to the Montana comeback will help unlock our state’s full, outstanding potential,” Gianforte said.

He highlighted efforts to control state spending, saying, “I promised we would hold the line on new general fund spending. This budget does. After a decade of out-of-control spending, this budget brings fiscal responsibility back to state government while providing essential services.”

The governor’s budget also relieves 4,000 small businesses from the burden of the business equipment tax by raising the exemption from $100,000 to $200,000. The business equipment tax is a unique Montana tax that requires businesses to pay taxes on equipment, supplies and tools used in the production and operation of the business.

Gianforte’s budget boosts funding by 25 percent for programs providing property tax relief to low-income homeowners, including disabled veterans and seniors.

To combat the drug epidemic, the Gianforte budget devotes marijuana tax revenue and part of the tobacco tax settlement to the HEART Fund, or the Healing and Ending Addiction through Recovery and Treatment Fund. It will fund a full continuum of substance abuse prevention and treatment programs for communities. With $7 million in new fund and a federal match, the governor’s budget invests an additional $23.5 million per year in substance abuse prevention and treatment programs.

The governor proposes a $1 million investment in trades education by providing a credit for employee education and training.

Gianforte’s budget also provides $2.5 million of incentives to raise the pay of Montana’s starting teachers. Montana ranks last in the country in starting teacher pay.

Gianforte noted that, even with statutory required spending and investments in combating the drug epidemic, increasing starting teacher pay, and expanding trades education, total general fund spending increases less than one percent per year.

Government Funded Broadband?

22 January 2021
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By Johnny Kampis, The Center Square

President-elect Joe Biden’s broadband plan indicates he will push for more government-owned (taxpayer-funded) internet networks, which would be bad news for taxpayers.

[The issue will be taken up by the Montana State Legislature.]

Biden’s agenda, released on his website during his presidential campaign, talks in detail about his broadband goals. That includes expanding broadband to every American, which could include wireless broadband through the deployment of 5G.

The most alarming part of the plan: Biden says he will task the U.S. National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture (USDA) “to support cities and towns that want to build municipally-owned broadband networks.” This means that taxpayers will be on the hook for these systems.

A Democratic task force put together by Biden and Sen. Bernie Sanders (I-Vt.) wants to empower the Federal Communications Commission (FCC) to largely undo much of what was accomplished by Chairman Ajit Pai under the Trump administration, including reversing the agency’s stance on government broadband.

“Democrats will take action to prevent states from blocking municipalities and rural co-ops from building publicly-owned broadband networks, and increase federal support for municipal broadband,” the recommendations released by that task force this summer state.

But the list of such projects that were tried and failed are quite long. The Taxpayers Protection Alliance highlighted many of them in its May report “GON with the Wind: The Failed Promise of Government Owned Networks Across America.” More follies are noted on TPA’s “Broadband Boondoggles.”

Jeffrey Westling, a fellow in innovation and technology policy at R Street Institute, told TPA that government can help usher in infrastructure growth in other ways, such as loosening regulations and offering incentives to private providers to aid expansion to high-cost areas such as rural America. That’s a better plan than promoting municipal broadband, he said.

“There’s a better way of doing this that doesn’t put taxpayers at risk,” Westling said.

U.S. Telecom: The Broadband Association agrees with Westling. In its agenda for the next administration’s first 100 days, the organization lays out its wish list for the goal of connecting every American with broadband.

This includes addressing “antiquated policies” that harm broadband deployment and discourage competition. U.S. Telecom said the administration can work to eliminate high pole attachment rates, help expedite permitting processes and lift mandates that companies must sustain outdated networks rather than devote more resources to deploying the next generation of networks.

U.S. Telecom also said Congress should fund the Broadband Data Act so the FCC can create better broadband maps to ensure taxpayer resources are better targeted toward unserved and underserved areas. The group also rejects any proposal that would treat broadband as a government utility and the potential red tape that could ensue.

“All policies should be viewed with an eye toward removing barriers that impede getting broadband to everyone,” the U.S. Telecom agenda states.

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Editor’s Note: Will government controlled broadband be less prone to censorship and communication  barriers than is the current monoply status that government has granted to the big tech companies in the US?

FDA Wants to Tax Businesses that Raced to Produce Hand Sanitizers

22 January 2021
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Believe it or not, the federal Food and Drug Administration (FDA) on Dec. 29 announced that it was going to impose new fees on distilleries and other facilities that rushed to the rescue of a COVID –stricken nation by producing hand sanitizers. The FDA backed off the proposed tax only when the Department of Health & Human Services (HHS) told them to.

HHS explained that only the FDA has the authority to issue such rules. While HHS administration said that the industry should be thanked rather than taxed, it chastised FDA primarily for having failed to go through the proper regulatory processes. The incident is a reminder about the true nature of government and regulatory controls.

Brian Harrison, HHS Chief of Staff, issued a statement that they have withdrawn the Notice published in the Federal Register,  OTC Monograph Drug Facility Fees and directed FDA to cease enforcement of these fees. 

Early in the COVID-19 crisis many small businesses across the country joined the fight to combat the virus which included distilleries that augmented their operations to produce hand sanitizer, an important asset in the battle to deter the spread of COVID.

In March, the FDA issued a guidance document – the Temporary Policy for Preparation of Certain Alcohol-Based Hand Sanitizer Products During the Public Health Emergency (COVID-19) – which provides flexibility for those entities capable of producing hand sanitizer to rapidly enter the market.

Farm Bureau to Follow Legislature Closely

21 January 2021
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By Nicole Rolf and Rachel Cone

The 67th Montana Legislature convened Jan. 4 in Helena. For those who follow the process from home, this year’s mixed-format session, or “hybrid”, will offer an opportunity for remote and virtual participation in the lawmaking process.

In addition to giving legislators the choice between participating in person or from a remote location, the option to testify through electronic means opens the doors for farmers and ranchers from remote corners of our state to participate, regardless of winter feeding, calving or inclement weather. In this, our first weekly Boots on the Hill column, we’ll outline how you can participate.

For Montana Farm Bureau lobbyists working in Helena, this session comes with many changes. COVID-19-related precautions mean each committee will meet a little differently than usual, but they have put protocols in place to carry out the important work of the people and still allow public input. Depending on the size of the room in which the committee meets, they may allow a limited number of non-committee members into the room to testify and watch from the audience. In smaller meeting rooms, members of the public are allowed inside to testify and then exit the room because limited space does not allow seating. Committees are also hearing testimony virtually. 

Much of the legislative process remains the same, especially for folks who do not usually spend time in Helena. Anyone can visit the Legislative webpage, leg.mt.gov/, to find a listing of your elected officials, to view all the bills that have been introduced and to track where the bills are in the legislative process. What’s unique this year is the button in the middle of the website’s home page: “Request to testify remotely/testify remotely.” Though this portal, you can locate the bill you are interested in following and submit written testimony or schedule a virtual testimony. These must be scheduled 24 hours in advance. You can also call the Legislative Hotline to leave messages for legislators at (406) 444-4800.

While it is important to have a relationship with your own legislators, they may not be on the committee that most pertains to issues you care about. You may wish to familiarize yourself with legislators who serve on relevant committees including but not limited to: agriculture, natural resources, fish and wildlife and taxation. 

We have started tracking bills and testifying on behalf of our farming and ranching members. Each week for the next 90 days, you can look for our update on bills we’re working, as directed by the Farm Bureau member-written policy we represent.

Here’s the first bill we’re supporting this Session:

Senate Bill 65: Revise civil liability laws, introduced by Sen. Steve Fitzpatrick (R), SD10. Farm Bureau member policy supports. This bill limits liability to the owners of a premise if a person comes there and is infected with COVID-19, as long as that owner was not negligent. This bill is primarily intended to protect business owners, which would of course include farms and ranches.

Nicole Rolf is the Director of National Affairs and a rancher from Miles City, Montana.  Nicole works closely with our Congressional delegation on national issues affecting Montana agriculture. Additionally, this is her seventh Montana Legislative Session, lobbying in Helena on behalf of MFBF members. She also works as the Eastern Montana Regional Manager. Nicole can be contacted at nicoler@mfbf.org.

Rachel Cone is the Director of State Affairs for Montana Farm Bureau Federation. She also coordinates the MFBF Water Committee, the Resource Management, Environment and Technology Committee and the Livestock Committee in addition to being the Treasurer for the Farm Bureau PAC. Rachel can be contacted at rachelc@mfbf.org.

COVID Restrictions Lifted

21 January 2021
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Montana businesses no longer have to operate within constrained hours and reduced capacity because of COVID-19, by order of Governor Greg Gianforte on Wednesday. The order eliminates the restraints imposed mid-November by former Government Steve Bullock. Gianforte said the order becomes effective within 48 hours of Tuesday afternoon, and it follows the rescinding, last week, of local mandates by Yellowstone County Health Officer John Felton.

The loosening of restrictions is being made possible by the arrival of vaccines and the decline in the number of new COVID cases in the state.

Gov. Bullock’s orders had required restaurants, bars, casinos, distilleries, etc. to operate at 50 percent capacity and to close at 10 pm. Felton had extended the limit in Yellowstone County on hours of business to all businesses, but with both state and local orders rescinded businesses in Yellowstone County may now operate at full capacity and at whatever hours they choose.

Gianforte said that previous mandates “unduly restricted” restaurants, bars and casinos. Capacity directives were arbitrary, he said, and the restrictions were complicated and confusing. He said that he heard “loud and clear” from business owners that the directives were “too complex, difficult to implement and arbitrary.”

He said that his goal in issuing the COVID directives was to reduce the burden on businesses while simultaneously reducing risks of spreading the virus. The new rules are simple and common sense, he said. They are outlined on three pages while the previous rules were 25 pages long.

 Businesses are to follow “best practices” and urged to develop policies that continue to ensure the health and safety of their customers and employees.

“We will continue to make common sense steps,” said Gianforte, saying that he encourages everyone to continue to wear masks and that he  is “looking forward to the day when we can remove them.”

Last week, Gianforte said that changes to mask mandates not would be made until vaccinations have been given to the most vulnerable in the state, and a bill is on his desk from the state legislature that provides protection from COVID-19 lawsuits for businesses, schools and non-profits. That bill is winding its way through the state legislature.

At that time, he also explained that the first people to get the vaccine were to be health care providers and those most vulnerable, in an effort to keep hospitals and deaths at a minimum. At that time he identified two categories of priority vaccine recipients. In the press conference on Wednesday he said most of those in the first category – 1A – have already received the vaccine and most of those in the second category – 1B – should have received vaccinations by the end of January.

Montana is ranked ninth in terms of how quickly and efficiently the vaccines are being delivered and administered. “We have over 70,000 first doses,” he said, which is in excess of the number needed to serve the first category. By next week, most communities will move into the treating those in the 1B category.

New deliveries of the vaccines are being made weekly.

Contacting Your Legislator

21 January 2021
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If you’d like to let your legislator know what you think you can offer testimony virtually. Legislative Services created a platform to submit testimony and receive a Zoom link. All you have to do is navigate to leg.mt.gov and click on the “HAVE YOUR SAY MONTANA” speech bubble icon. Follow the directions provided and make sure you submit everything by noon the day prior to the hearing.  When you log onto the Zoom meeting, your camera and audio will be turned off. Once the chair calls for proponent and opponent testimony, you can click the “Raise Hand” button and wait for staff to turn your audio on. At which point you can give your testimony. Be sure to stick around in case members of the committee have questions for you.

City, County Governments May Co-locate in Stillwater Building

21 January 2021
Evelyn Pyburn
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Yellowstone County and the City of Billings are exploring in earnest the possibility of consolidating local government offices in the Stillwater Building.

On Monday, County Commissioners asked County Finance Director Kevan Bryan to research the feasibility of the county purchasing a portion of the Stillwater Building, and to present commissioners a report on January 22. His research should also include other options that might serve the county’s future growth and space needs

Kevin Iffland, Assistant City Administrator, who heads a committee to do much the same for the city, said they remain interested in a proposal they received about a year and a half ago from WC Commercial the company that owns the Stillwater Building. The Stillwater Building is a five-story building at 316 N. 26th in downtown Billings, formerly known as the James F. Battin Building. Several departments of county government currently occupy part of the third floor under a lease with the company that owns the building WC Commercial headed by Joe Holden.

A few weeks ago, Holden sent a letter to the city and the county saying he wanted to sell the property and asking for $24 million.

The county and city will initiate the process of getting appraisals on the building. Iffland said that he is sending WC Commercial a letter this week announcing their interest and asking permission to conduct appraisals, which would probably not be completed until near the end of February at the earliest.

Commissioner John Ostlund initiated a conversation about the need to develop a plan for their future needs with other commissioners and department heads during a discussion meeting. He underscored the wisdom of making plans now for the future of what they know will eventually be a need for more space. Both the county attorney’s office and courts are working in crowded spaces, said Ostlund, and both will need more space as “felony cases have went off the charts. “We know at some point we will be booted out of the court house.”  Eventually, he said, he believes that the Courthouse will be a building dedicated to courts and the justice system.

Ostlund said that he thought that the county would be interested in no more than two floors and would probably want to “condo” them, but whether that is the case will be part of the feasibility study. He said that they will also be looking at the possibility of purchasing the Miller Building which is available for sale. It is where City/County Planning offices are housed and includes parking.

Iffland said that the city, too, is looking at other options but they aren’t “super looking”, just wanting to be aware of their options.

Ostlund said that the county plans to acquire whatever they need without having to ask for any tax increases. He said that the county had already set aside some capital funds for remodeling existing space or acquiring new that has not been used, and there are other capital reserves that can be pulled together which will most likely meet their financial needs.

The city would want the rest of the building that the county does not take, including basement and main floor and upper two floors. “We are in dire need of law  and justice center space, and secondly, other city offices. Planning and community development and public works are in leased buildings and we would like to consolidate.

While there are sure to be benefits and cost savings for the city and county to do the purchase jointly, the real beneficiaries, said Iffland, will be the citizens in having all local government offices located in one area.