The Business Review January 2021

A monthly online digital publication, The Business Review targets business leaders from the Rogue Valley and beyond. This means that your published articles and advertising message are being seen, read and remembered by those who are seeking your products or services in and around Jackson County and within more than 55 Oregon communities.

THE CHAMBER OF MEDFORD & JACKSON COUNTY THE BUSINESS REVIEW

JANUARY 2021

The Banking & Finance Issue Updates on the Economy and More Help for Small Businesses

CONTENTS January 2021 | VOLUME 21 | ISSUE 1

4 LEADERSHIP MATTERS A Letter from Lydia Salvey, Editor In Chief 6 OREGON UPDATES Guide to Small Business COVID-19 Emergency Loans Emergency Sheltering Now Managed by State with New Hotline The Urban-Rural Divide Has Shrunk in 2020 16 CREATING A STRONG ECONOMY What Student Loan Borrowers Need To Know About Relief Ending How Coronavirus-Impacted Businesses Can Use the Employee Retention Tax Credit Jackson County COVID-19 Update Investments in Rural Communities Congressman Cliff Bentz Sworn In Merkley Sworn in for Third Term Congressman Cliff Bentz Statement on Electoral College Certification 31 PROMOTING THE COMMUNITY Wildfire Cleanup Efforts Begin Ash and Debris Removal in January 25 REPRESENTING BUSINESS ISSUES Merkley, Wyden Announce Market of Choice to Open in Medford on January 28 Rogue Creamery Introduces Cheese is Love ™ Cheddar 38 MEMBER NEWS Ambassador of the Year Profile 2021 Oregon Fringe Festival 40 MEMBER NEWS January Spotlight Exhibits JC Penney’s Building Open House and Repurposing Sale Postponed Chamber of Medford & Jackson County Forum Review 44 RENEWING & NEW MEMBERS, DIRECTORY

The Business Review | January 2021

Promote. Promoting the community. Create. Creating a strong local economy. Connect. Providing networking opportunities. Represent. Representing business issues. Our Strategic Objectives

Meet the Editorial Staff

Brad Hicks, CCE, IOM President & CEO brad@medfordchamber.com 541-608-8514

Lydia Salvey Editor in Chief/Vice President of Communications & Programs lydia@medfordchamber.com 541-608-8520

Kira Zavala Director of Sales

& Membership Development kira@medfordchamber.com 541-608-8522

Cathy Watt Office Administrator cathy@medfordchamber.com 541-608-8515

The Chamber of Medford & Jackson County 101 E 8th St, Medford, OR 97501 (541) 779-4847 • medfordchamber.com

medfordchamber.com

January 2021 | The Business Review

LEADERSHIP MATTERS A LETTER FROM LYDIA SALVEY, EDITOR IN CHIEF

W ell here we are with 2020 now officially behind us… What. A. Year. I’m going to stray away from the words we all heard on repeat last year that described what was going on and what we all needed to do to move forward (unprecedented, pivot, etc.) but I will say this, on behalf of The Chamber staff and Board of Directors, thank you for trusting us to be your voice on matters that are important to your business, thank you for working with us while we work for you, and thank you for doing your part to step up for our community while we took on not only a global pandemic, but devastating wildfires on top of that. The business community is the backbone of Medford and Jackson County, and we are honored and grateful to be working alongside you. In this issue of The Business Review we discuss Banking and Finances. Included in this publication is the updated Guide to Small Business COVID-19 Emergency Loans, a breakdown of current economic standings from the Oregon Office of Economic Analysis, and How Coronavirus-Impacted Businesses Can Use the Employee Retention Tax Credit. According to a 2020 report from the Oregon Office of Economic Analysis, “the Rogue Valley has been one of the best performing regional economies in the state,” something that we at The Chamber are very proud to work for day after day, as one of our core strategic objectives is “Creating a Strong Economy.” The report entails that while employment took a dramatic spike in the Rogue Valley and in the state in April 2020, we are well above the state average now in employment opportunities, amongst other factors that contribute to our local economy. For more information on this report, check out the article titled, “The Urban- Rural Divide has Shrunk in 2020.” In closing, I’d like to take the time to congratulate 2020’s Excellence in Business Award winners! Your efforts in our community and in your business have not gone unnoticed and we are grateful to recognize you for the incredible work that you do! While we wish we could have celebrated you in person this year, we hope you enjoyed your evening with our special celebrity guests. To anyone who was unable to view the live showing, you may view this year’s winners and the entire show on our website at medfordchamber.com/excellence- in-business-awards

Lydia Salvey Editor in Chief/Vice President of Communications and Programs The Chamber of Medford & Jackson County

The Business Review | January 2021

January 2021 | The Business Review

OREGON UPDATES

Guide to Small Business COVID-19 Emergency Loans What small businesses need to know about the new pandemic relief package December 22, 2020 | US Chamber of Commerce A s part of an end-of-year pandemic relief package, Congress has passed several changes to the Paycheck Protection Program (PPP) and created a “Second Draw” PPP for small businesses who have exhausted their initial loan. Other changes impact eligibility for initial PPP loans, the loan

Contents: • How Do These Changes Impact My Existing PPP Loan? • I Exhausted My Initial PPP Loan, How Does This Help Me? • What If I Never Received a PPP Loan? • Which Changes to Other Programs That May Help My Small Business Have Been Changed? • Expanded Employee Retention Tax Credit • EIDL Grants • Grants for Shuttered Venue Operators • SBA Loan Debt Forgiveness continued on page 8

forgiveness process, and the tax treatment of PPP loans. Congress has also made changes to other programs – including Economic Injury Disaster Loans (EIDL Program), the Employee Retention Tax Credit, a Venue Grant program, and SBA loan programs –that will benefit small businesses. Here’s everything small business owners need to know now:

The Business Review | January 2021

Let’s keep it going and stay #SouthernOregonStrong!

THE CHAMBER OF MEDFORD & JACKSON COUNTY IS A CATALYST • CONVENER • CHAMPION

Know of a compelling story that relates to business conducted in Southern Oregon? Email us at businessreview@medfordchamber.com

January 2021 | The Business Review

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have exhausted your first PPP loan and 1. you have no more than 300 employees, and

1. How Do New Changes Impact My Existing PPP Loan? Tax Treatment: The new law overturns the IRS ruling and provides that regular business expenses paid for with PPP loan proceeds shall be deductible for tax purposes (applies to past and future loans). Expanded List of Expenses Qualifying for Forgiveness: The list of expenses that PPP funds can be used for that qualify for loan forgiveness has been expanded to include: • “operations expenses” defined as payments for business software and cloud computing services and other human resources and accounting needs that facilitate business operations; • “supplier costs” defined as payments to a supplier for goods that are essential to the operations of the borrower pursuant to a contract or purchase order in effect before the PPP loan is disbursed or with respect to perishable goods, in effect at any time; • “worker protection expenses” defined as operating or capital expenditures to comply with public health guidance related to COVID-19, including things like drive-through windows and sneeze guards and the purchase of personal protective equipment (PPE); and •“covered property damage costs” defined as costs related to property damage or looting due to public disturbances in 2020 that are not covered by insurance or other compensation. Remember: It is still the case that not more than 40% of the forgiven amount can be for non-payroll costs, which may limit how much of your loan can be forgiven. Loan Forgiveness Reduction: If you also received an EIDL grant, your PPP loan forgiveness will no longer be reduced by the amount of the grant. Loan Forgiveness Period: The period for which expenses count toward loan forgiveness will begin on the date of loan origination and end on a date of your choosing that is between 8 and 24 weeks after origination. Simplified Application: If your loan was for less than $150,000, there will be a simplified one-page application process for loan forgiveness. (top) 2. I Exhausted My Initial PPP Loan, How Does This Help Me? The brand new “Second Draw” program is for small businesses, non-profits, sole proprietors, and independent contractors who have exhausted their initial PPP loan. The program will make new loans through March 31, 2021 or until the new funding is exhausted. Eligibility: You are eligible for a second draw loan if you

2. you have experienced a greater than 25% reduction in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019. Entities with significant ties to China are ineligible for a second draw loan. Loan Amount: The maximum loan amount is the average monthly payroll costs for the entity during the 12 months prior to the loan or, at the election of the borrower, 2019 multiplied by 2.5 (or 3.5 for employers in the accommodation and food service industry). Seasonal employers utilize average monthly payroll costs for a 12-week period between February 15, 2019 and February 15, 2020. A loan may not exceed $2 million. Loan Forgiveness: The amount of loan that can be forgiven is the lesser of: 1. Costs incurred or expenditures made between the date of the origination of the loan and ending on a date of your choosing that is between 8 and 24 weeks after origination for: (a) payroll costs, (b) qualifying mortgage interest or rent obligations, (c) covered utility costs, (d) covered operations costs, (e) covered property damage, (f) covered supplier costs, and (g) covered worker protection expenditures; or 2. Payroll costs for the same period divided by 0.60 (this serves as a cap on the total loan forgiveness to ensure that at least 60% of the total amount forgiven is for payroll costs). Like original PPP loans, the amount of loan forgiveness can be reduced if the borrower has (1) reduced the number of employees or (2) employee salaries by more than 25%. However, the same safe harbors that apply to original PPP loans apply to Second Draw loans. Learn more about these Safe Harbors in our Guide for PPP Loan Forgiveness. Set-Asides: $25 billion is set aside for employers with 10 or fewer employees or for loans less than $250,000 for entities located in a low-income neighborhood. (top) 3. What If I Never Received a PPP Loan? For new PPP applicants, the loan process will largely remain the same (check out our original PPP Guide) with a few major changes: • The PPP program is open through March 31, 2021 or until the new funding is exhausted. • If you are a 501(c)(6), a local news media organization, or a housing cooperative you may be newly eligible for a loan.

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The Business Review | January 2021

January 2021 | The Business Review

to employees irrespective of whether the employee is providing services. Employers can now also receive both the Employee Retention Tax Credit and a PPP loan, just not to cover the same payroll expenses. Remember: This is a refundable tax credit. See the Chamber’s original Guide to the ERTC for more information. EIDL Grants: The new law reopens the $10,000 EIDL Grant program. Priority for the full amount of the EIDL grant will be given to small businesses with no more than 300 employees, located in low-income neighborhoods, who have experienced a 30% reduction in gross receipts during any 8-week period between March 2, and December 31, 2020 compared to a comparable 8-week period before March 2. If you meet this description and received a grant that is less than $10,000 you can reapply to receive the difference. Grants for Shuttered Venue Operators: The law creates a new $15 billion grant program for eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives that have experienced at least a 25% drop in revenue. Grants are equal to the lesser of $10 million or 45% of gross earned revenue in 2019. Grants must be used for specified expenses such as payroll costs, rent, utilities, and personal protective equipment. If you receive a grant you may not apply for a new PPP loan. SBA Loan Debt Forgiveness: The new law resumes the government payment of monthly principal and interest on small business loans guaranteed by the SBA under the 7(a), 504, and Microloan programs. Borrowers with loans approved by the SBA prior to the CARES Act will receive an additional three months of payments beginning in February of 2021. Those payments will be capped at $9,000 per borrower per month. After that, certain borrower will receive an additional five months of payments, including: borrowers with SBA microloans or 7(a) Community Advantage loans or borrowers with any 7(a) or 504 loan in hard hit sectors: educational services; arts, entertainment and recreation; food service and accommodation; support activities for mining, and oil and gas extraction; apparel manufacturing; clothing and clothing accessories stores; sporting goods, hobby, book and music stores; air transportation; transit and ground passenger transportation; scenic and sightseeing transportation; publishing industries; motion picture and sound recording; broadcasting; rental and leasing services; and personal and laundry services. New SBA loans made or approved between December 22, 2020 and September 30, 2021 will receive six months of government payment of principal and interest, also capped at $9,000 per month. n

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• You may qualify even if you took advantage of the Employee Retention Tax Credit. • If you are a publicly traded company, you are now prohibited from receiving a loan. • Group insurance payment can be included in your payroll costs when determining your maximum loan amount (see Step 3 in our original Guide). • If you are a seasonal employer, you have greater flexibility in picking the 12-week period between February 15, 2019 and February 15, 2020 used to determine your payroll costs and thus your maximum loan amount. New borrowers have until the end of the covered period of their loan (up to 24 weeks after origination) to restore a reduction in their number of employees or reduced wages in order to avoid having their loan forgiveness reduced. Note: The safe harbors for when an employer cannot find qualified employees or where complying with COVID related safety measurers prevents a return to February 2020 levels of business activity and staffing remain in effect. Learn more in our Guide for PPP Loan Forgiveness. Set-Asides: $35 billion is set-aside for first time borrowers and $15 billion is set aside for employers with 10 or fewer employees or for loans less than $250,000 for entities located in a low-income neighborhood. Remember: The other changes regarding eligible uses of PPP funds and loan forgiveness discussed above will also apply to your new loan. (top) 4. Which Other Programs That May Help My Small Business Have Been Changed or Updated? Expanded Employee Retention Tax Credit: The new law significantly expands the employee retention tax credit beginning on January 1, 2021. The credit expires on June 30, 2021. The prior credit was 50% on $10,000 in qualified wages for the whole year (or a maximum of $5,000 per employee). The new credit is 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30th). The new law also expands which employers are eligible. Prior to the new law, the employee retention tax credit applied only to an employer who experienced a decline in gross receipts of more than 50% in a quarter compared to the same quarter in 2019. Eligibility is now expanded to include employers who experienced a decline of more than 20%. In addition, the employee cap under which it is easier to claim the tax credit has been raised to 500 employees from 100 employees. Now, employers with 500 or fewer employees can claim the credit for wages to paid

The Business Review | January 2021

OREGON UPDATES

Emergency Sheltering Now Managed by State with New Hotline Jackson County, OR | January 5, 2021 E mergency sheltering assistance previously managed by the Red Cross will now be managed by the Oregon Department of Human Services (ODHS). Individuals impacted by September fires needing assistance with sheltering and food support should call 833-669-0554 effective January 1, 2021. Please do not call the Red Cross for hotel and meal issues, as the Red Cross is no longer providing support services. Tommy Jones of the Jackson County Emergency Operations says, “The Red Cross has done great work meeting the

needs of those that lost their homes to the fires, and having the State of Oregon continue helping is the critical next step in the recovery process for Jackson County.” For questions or concerns about temporary shelter, please call the Wildfire Transition Assistance Hotline (833-669- 0554) at any time. Questions can also be sent by email to WildFires.2020@dhsoha.state.or.us. Jackson County fire recovery questions & information available at www.RogueValleyRebuilds.org - or call 211. n

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January 2021 | The Business Review

OREGON UPDATES

The Urban-Rural Divide Has Shrunk in 2020 Josh Lehner | Oregon Office of Economic Analysis | December 9, 2020

The Business Review | January 2021

S trong economies work wonders but they do not cure all ills. Disparities and inequities lessen during good economic times, but tend to widen during recessions. Our office is particularly focused on three main economic disparities: income, geographic, and racial and ethnic. So far, we know that due to the nature of the recession, income inequality is widening today. However, based on limited real-time information in Oregon, it does not appear that geographic or racial disparities are widening, or at least not yet. In fact, preliminary employment estimates* indicate that the urban-

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January 2021 | The Business Review

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rural divide has actually shrunk so far in 2020. Now it’s shrunk for bad reasons — urban areas have lost proportionately more jobs — and not for good reasons — rural areas growing faster over an entire expansion — but even so, it’s important to note the gap is not widening. So far this cycle rural Oregon is doing somewhat better than urban Oregon. This marks a departure from past business cycles. Just for a quick comparison, here are the previous 4 recessions in Oregon. Rural areas have tended to lag in recovery compared to the state’s urban economies. Now, rural Oregon is growing overall in recent decades — not something much of rural

activity due to hardly any business travel, an increase in working from home, and any potential impacts related to the protests and clashes of violence. Much of eastern Oregon so far as experienced fewer job losses during the recession and while growth in recent months is modest, Southeastern and Northeastern Oregon are the two best performing regional economies in the state so far. Note that the Rogue Valley outlook may be up in the air today. So far, the Rogue Valley has been one of the best performing regional economies in the state. However the area was directly affected by the wildfires, and has experienced a lot of workplace COVID outbreaks. While unlikely to derail the overall trajectory of the recovery in the years ahead, near-term growth in the Rogue Valley may be weaker than the state in the months to come. Finally, while the urban-rural gap is not widening today, over the full cycle it may. Long-run economic growth is primarily about the number of workers and how productive each worker is. Population gains are strongest in urban areas, which should propel these regional economies to faster growth in the years ahead. Additionally, urban areas, have larger concentrations in the industries expected to grow the fastest over the entire cycle than do many rural areas. As always, keep eye on capital (financial, human, natural, physical, and/or social) and investments as those will help drive productivity and overall growth in

America can say outside of the oil patch — but the growth is slower. The 2001 dotcom bust is an exception. At that time, the Portland region, with its major cluster of high- tech manufacturing, experienced the deepest downturn and prolonged recovery, whereas other urban parts of the state, namely Bend, Medford, and Salem escaped relatively unscathed at the time. Back to 2020. The severity of the initial recession varied at the local level mostly due to the industrial structure. Places like the North Coast, Columbia Gorge, and Central Oregon all experienced large declines in part due to their outsized travel and tourism sectors. As the economy reopened and people began to venture out, growth has been strongest among these same places. What’s interesting to see is not that the rebound has been strongest here — that was to be expected. Rather what is interesting is that this rebound in growth has been strong enough to propel these regional economies past those in Portland and throughout the Willamette Valley. These hard-hit economies are now doing somewhat better over the entire cycle to date than the large urban centers in the valley. In fact, so far in recovery, the Portland region has seen the slowest growth. This may be due to the lack of rebound so far in high paying industries which tend to be located predominantly in urban areas. Additionally major job centers like downtown Portland have seen a large drop in

The Business Review | January 2021

our regional economies. Even so, if these initial employment estimates prove accurate, they effectively are providing rural Oregon a year or two head start on these longer- run trends as the expansion continues and accelerates on the other side of the pandemic. n * As always, take real-time data with a grain of salt. Future revisions will change these numbers some. At this point the data is benchmarked through June and we will have a much better handle on the July- September numbers in early January when the 2020q3 QCEW data is released.

January 2021 | The Business Review

CREATING A STRONG ECONOMY

FINAL STIMULUS DEAL: What Student Loan Borrowers Need To Know About Relief Ending December 20, 2020 | Forbes | Adam S. Minsky

Congress has reached an agreement on a new stimulus package. And it’s not great news for student loan borrowers. Background Lawmakers have been engaged in intense talks to reach consensus on a new compromise stimulus package that can pass Congress this week. While there has been broad agreement over some areas of relief — such as extending unemployment relief and providing additional funding to small businesses — other proposals have generated more partisan opposition. This has been an impediment to finding common ground. Since March, the CARES Act has suspended all payments on government-held federal student loans, frozen all

interest, and stopped all collections efforts. The freeze on collections has included involuntary wage garnishments and interceptions of federal tax refunds. The CARES Act’s student loan relief was originally scheduled to end in September, but the Trump administration granted two extensions — the first to December 31, and the second to January 31, to provide Congress with additional time to extend the relief further.

Final Stimulus Package — No Further Student Loan Relief

Congress had appeared likely to extend the existing student loan relief into the spring. A draft summary of a bipartisan stimulus proposal released earlier in December had included an extension of existing student loan relief to April.

The Business Review | January 2021

What is the future of student loans?

But POLITICO reports that the final version of the stimulus package poised to pass Congress includes no further extension of student loan relief. And the billions of dollars allocated towards the student loan relief extension that was present in the earlier draft summary is not listed in a summary of the latest bill. That means that borrowers may have to plan on resuming their payments shortly after January 31. Biden Could Still Extend Student Loan Relief Despite the bad news for student loan borrowers, President-elect Biden could still further extend the moratorium on student loan payments, interest, and collections via executive order once he takes office on January 20, just as the Trump administration did in August and again earlier this month, particularly if the economy does not show signs of improving. Biden has previously expressed a willingness to enact executive orders as necessary to bolster the economy. However, student loan servicers and some consumer advocates have expressed concern about the short time window between January 20 (when Biden would be sworn in) and January 31 (when student loan relief ends). Preparing to transition millions of borrowers back into repayment, and then halting the process less than two weeks from expected implementation, could cause administrative problems and further headaches for struggling student loan borrowers. In a recent survey by Student Debt Crisis and Savi, 77% of student loan borrowers covered by the moratorium indicated that they do not feel financially secure enough to resume their student loan payments, and more than half of surveyed borrowers rate their current financial wellness as poor or very poor since the pandemic began in earlier this year.

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January 2021 | The Business Review

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What Else Is In the Bill? Despite the stimulus deal’s shortcomings on student loan relief, the bill will nevertheless contain other important provisions, including the following: • $600 stimulus checks for people who made under $75,000 in 2019, and smaller stimulus checks for those who made between $75,000 and $99,000. Like the stimulus checks that were issued under the CARES Act, the new stimulus checks should not be counted as taxable income for purposes of federal student loan income-driven repayment plans, although this has not yet been confirmed. • An extension of federal unemployment benefits of up to $300 per week, starting Dec. 27 and running through mid-March 2021. • Additional funding for small businesses through the Paycheck Protection Program. • $25 billion in emergency rental assistance, and an extension of the eviction moratorium to January 31, 2021. What Should Student Loan Borrowers Do? For now, student loan borrowers should expect to enter repayment in February, after the moratorium expires January 31. Under the current provisions governing the moratorium, the months of suspended payments will continue to count towards loan forgiveness programs (such as Public Service Loan Forgiveness), as well as loan rehabilitation programs for borrowers making efforts to cure defaulted federal loans. Borrowers who are concerned about affording their payments in February should consider their repayment plan options, even if Biden may further extend the relief via executive order. For borrowers who have experienced a reduction in income, an income-driven repayment plan can often provide affordable monthly payments. Borrowers already on an income-driven repayment plan can apply to have their monthly payments recalculated at any time due to changed circumstances, such as a reduction in income, job loss, or change in marital status. In addition, many student loan servicers have voluntarily pushed annual recertification deadlines for income- driven repayment plans well into 2021, meaning many borrowers already on an income-driven plan may not have to take action on their loans for several more months. Borrowers should contact their loan servicers for additional information. Update, Dec. 21, 2020: Text of the stimulus bill released on Monday confirms that it does not include an extension of student loan relief.

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The Business Review | January 2021

January 2021 | The Business Review

CREATING A STRONG ECONOMY

How Coronavirus-Impacted Businesses Can Use the Employee

Retention Tax Credit Sean Ludwig | CO, US Chamber of Commerce | January 6, 2021 W ith many American businesses

around the country struggling due to the

coronavirus pandemic, the government responded by passing multiple stimulus packages and tax credits. One crucial tax credit businesses should know is the Employee Retention Tax Credit (ERTC). The ERTC was originally included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but it was not widely used because initially, businesses could only take advantage of either the Paycheck Protection

The Employee Retention Tax Credit (ERTC) can greatly help businesses that suffered revenue reductions from COVID-19.

Program (PPP) or the ERTC. But Congress revised this provision in December 2020, meaning many more companies may now qualify to receive PPP loans and use the ERTC. The ERTC has been designed to incentivize businesses of all sizes to keep employees on their payroll during this period of economic hardship. Below, businesses can find important questions and answers to help get a better understanding of these credits and which specific companies are eligible to receive them. Is my company eligible? As of December 2020, employers with 500 or fewer employees are able to claim the ERTC if they had a revenue reduction in 2020. Specifically, businesses that experienced a decline in gross receipts by more than 20% in any quarter of 2020 compared to the same quarter in 2019 are eligible.

Additionally, eligibility ends if gross receipts in a 2020 quarter exceed 80% compared to the same quarter in 2019. For example, this means if your business has a 2020 third quarter where revenue is down 21%, but then your 2020 fourth quarter has revenue up by 81%, then you only qualify up to the third quarter. Regarding tax-exempt organizations that fall under 501(c) categorization, they must have partially or fully suspended all operations in 2020 or 2021 to qualify. Also, employers may not claim the same employee for this credit and the Work Opportunity Tax Credit for the same period. Importantly, employers that received a PPP loan and those who receive second draw PPP loans can also be eligible for the ERTC. However, PPP funds and ERTC can not be used to cover the same payroll costs.

The Business Review | January 2021

U.S. Chamber of Commerce Chief Policy Officer Neil Bradley explains the details of the Employee Retention Tax Credit. How much is the tax credit worth? The ERTC is worth different amounts for 2020 and 2021, so we will describe them separately. For wages paid after March 12, 2020, and before January 1, 2021, the ERTC can be applied to 50% of qualifying wages up to $10,000. This means a maximum of $5,000 per employee could be credited back to your company if it qualifies. For wages paid after January 1, 2021, and before July 1, 2021, the ERTC can be applied to 70% of qualifying wages of up to $10,000 per quarter. This means companies could receive a maximum of $14,000 per employee through June 30. Wages are not limited to cash payments but can also include a portion of the cost of employer-provided health care. However, compensation does not include paid sick or family leave for which the employer is reimbursed under the Families First Coronavirus Response Act. Can self-employed and 1099 workers use the ERTC? Generally speaking, self-employed individuals can not take advantage of the ERTC in regards to their own self- employment earnings. However, some self-employed

individuals may qualify for the ERTC if they employ other workers in their trade or business. Given the special rules for self-employed workers, it’s strongly advised to talk over the caveats with a tax preparer if they believe they qualify. How do I receive this credit? This refundable tax credit can be applied against an employer’s portion of payroll taxes, which are reported quarterly. Basically, your company can be reimbursed for the credit by taking out deposits of payroll taxes that would have normally been withheld from employee wages. Eligible employers can report wages and related health insurance costs for each quarter on their quarterly employment tax returns via a Form 941 beginning with the second quarter of 2020. Additionally, if a company’s employment tax deposits do not cover the credit cost, that employer can receive a payment in advance from the IRS by submitting a Form 7200. This means potentially having the ability to get the tax credit back early in the form of a check from the IRS. Companies that believe they are eligible for the ERTC should talk to their tax preparers and payroll companies immediately to see if they can take advantage of 2020 and 2021 credits. The Internal Revenue Service may also issue further guidance regarding the ERTC, so please contact the IRS if you have questions. n

January 2021 | The Business Review

CREATING A STRONG ECONOMY

Jackson County COVID-19 Update Medford, OR | Press Release

Extreme Risk: What’s Open in My County? The best way to find accurate information on the COVID-19 Risk Level for Oregon Counties and what activities are open is to access the Governor’s website, What’s Open in My County page. This website also provides the metrics for the COVID-19 Risk Levels. Currently, Jackson County is under the Extreme Risk level, and disease activity continues to be widespread in the county. Masks are currently required statewide at all times unless you are: • At your own residence • In your own personal vehicle

• Sleeping • In a private, individual workspace

• Removing the mask briefly because your identity needs to be confirmed by visual comparisons, such as at a bank or if interacting with law enforcement If you have a medical condition that makes it hard to breathe or a disability that prevents you from wearing a mask, you can request an accommodation from the business or venue or transit authority. OHA does not recommend wearing a plastic face shield alone. While face shields can be very good at blocking droplets, they are not as good at stopping aerosols that can go around the shield. OHA recommends face shields only be used on a limited basis, for example, when talking to someone who is deaf or hard of hearing and needs to read lips to communicate. Healthy Resolutions for 2021 Quit smoking or vaping: As a smoker, you or the people who care about you may be worried about a connection

• Under 5 years of age • Eating or drinking

• Engaged in an activity that makes wearing a mask, face-covering or face shield not feasible, such as when taking a shower.

The Business Review | January 2021

between COVID-19 and smoking. Scientists are still learning about the disease, but we know that: • Being a current smoker increases your risk for severe illness from COVID-19. • Teens and young adults who vape face a higher risk of COVID-19 than their peers who do not vape. • Smoking weakens the immune system, which makes it harder for your body to fight disease. • If you continue to smoke, you have a greater risk for respiratory infections like pneumonia, colds, or flu. • COVID-19 impacts many of the same organs of the body as smoking or vaping. For those with heart or lung disease caused by smoking, you are at increased risk for severe illness from COVID-19. But there is good news: Soon after you stop smoking, your body begins to heal. Within the first few weeks and months, your lungs start to work better, and your risk for a heart attack goes down. The longer you go without smoking, the more time your body has to recover. No matter how old you are or how long you’ve been smoking, quitting smoking improves your health and can add years to your life. Free resources to help you quit smoking or vaping are available to everyone in Oregon. Call 1-800-QUIT-NOW or visit quitnow.net/Oregon for information in English. For Spanish speakers, call 1-800-DEJALO-YA or visit quitnow. net/mve/quitnow and select Español. Get vaccinated: It’s not too late to get a flu shot. Since COVID-19 and flu could spread at the same time this winter, it’s important to get a flu vaccine to protect against flu illness and serious flu complications, such as lasting conditions getting worse or pneumonia. Find a flu vaccinator near you at vaccinefinder.org. And when it’s your turn, resolve to get a COVID-19 vaccine. The COVID-19 vaccines are 95% effective and have gone through rigorous testing. The FDA and a safety board reviewed every study, every phase, and every trial. Getting the vaccine will keep you and your family safe. As the rollout continues in Oregon, the Oregon Health Authority and Jackson County will keep you up to date. Jackson County Public Health is following the OHA’s Vaccine Distribution and Sequencing Plan for COVID-19. Oregon is currently in the Phase 1A, Group 1 of the Vaccine Distribution and Sequencing Plan for COVID-19. • Phase 1A, Group 1 includes hospitals, urgent care, skilled nursing and memory care facility HCP and residents; tribal health programs; EMS providers, and other first responders.

For more information on the OHA’s Vaccination Plan, please access the OHA’s Vaccine Prioritization website. Support your mental health: It’s OK if you’re not OK. If you, or someone you care about, are feeling overwhelmed with emotions like sadness, depression, or anxiety, or if you feel like you want to harm yourself or others, call: • Call 911 • Jackson County Mental Health Crisis line (541)774-8201 • Suicide Lifeline (800) 273-8255 • Stay + Strong Help Line: (800)-923-4357 (800-923-HELP) • Senior Loneliness Line (503) 200-1633 • Military Helpline (888) 457-4838 • YouthLine (877) 968-8491 or Text HELLO to 741741 • Visit the National Domestic Violence Hotline or call 1-800-799-7233 and TTY 1-800-787-3224 • Visit the Disaster Distress Helpline or call 1-800-985- 5990 and TTY 1-800-846-8517 or text TalkWithUs to 66746 For more information: • The public can call 211-information with general questions • OHA Emerging Respiratory Disease page: www.healthoregon.org/coronavirus • CDC COVID-19 page: www.cdc.gov/coronavirus/2019- ncov/index.html • OHA COVID-19 Vaccine: https://govstatus.egov.com/ or-oha-covid-vaccine • CDC COVID-19 Vaccine: https://www.cdc.gov/ coronavirus/2019-ncov/vaccines/index.html • Jackson County HHS Vaccine: https://jacksoncountyor. org/hhs/COVID-19/COVID-19-News/covid-19-vaccine • CDC Travel within the U.S.: https://www.cdc.gov/ coronavirus/2019-ncov/travelers/travel-in-the-us. html • Jackson County Health and Human Services: http:// jacksoncountyor.org/hhs/COVID-19 • Oregon COVID-19 Testing Location Finder: https:// govstatus.egov.com/or-oha-covid-19-testing

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January 2021 | The Business Review

The Business Review | January 2021

REPRESENTING BUSINESS ISSUES

Merkley, Wyden Announce Investments in Rural Communities Included in Spending Bill Merkley co-authored agriculture spending bill included in the fiscal year 2021 omnibus bill passed by Congress Washington, D.C. | December 22, 2020 O regon’s U.S. Senators Jeff Merkley—who serves as the top Democrat on the Senate Appropriations subcommittee on agriculture and rural state of Oregon with dense, hazardous smoke, which has significantly impacted Oregon’s wine grape harvest. To better understand the challenges facing Oregon’s wine growers, the bill includes $3.5 million for research into smoke-impacted grapes at Oregon State University (OSU) and other West Coast universities, building on $2 million secured the prior appropriations cycle.

development—and Ron Wyden today announced that the Senate has passed a fiscal year 2021 agriculture spending bill that will benefit Oregon’s farms and families. The next step for the bill is to be signed into law by the president. “In every corner of our state, I’ve heard about the need for investments in our farms and rural industries, affordable housing, and good-paying jobs—especially as the coronavirus crisis’ toll on our health and economy continues to deepen,” said Merkley, who co-authored the agriculture appropriations bill. “I fought hard to ensure that those insights, and the specific ideas and priorities Oregonians have shared with me, would make it into this bill, so we can strengthen the vitality of our communities and keep delivering the world-class agricultural products Oregon is known for.” “Building the strongest possible quality of life throughout Oregon requires robust investment to support signature job-creating state industries such as agriculture and fishing, while also ensuring rural residents have housing they can afford,” Wyden said. “I’m glad this bill helps to achieve all those goals that Oregonians have shared with me on Zoom calls, virtual town halls and socially distanced conversations during this most challenging year.” Merkley is the only Oregon member of Congress from either chamber since Senator Mark Hatfield a generation ago to serve on the Appropriations Committee, considered to be one of the most powerful on Capitol Hill. He joined the committee in 2013 so that Oregon would have a strong voice in decisions about the investments our nation should be making. Key elements to benefit Oregonians in the spending bill are: Wine Grape Smoke Exposure Research: This year’s unprecedented wildfire season blanketed much of the

Rural Housing: The bill includes $1.41 billion for rental assistance and $40 million for Rural Housing Service Vouchers, which will help address the urgent housing crisis facing Oregon’s rural communities. Rural Development: The bill protects funding for a number of USDA’s Rural Development programs, including rural housing and business development programs that President Trump proposed eliminating. These programs make billions of dollars of investments in rural America every year. National Scenic Area: The bill includes $2 million to help Oregon’s rural communities promote economic development through the Oregon and Washington Investment Boards, rounding out a $10 million commitment that was authorized when the Columbia River Gorge National Scenic Area was created. Soil Health: The bill includes $1.5 million for the establishment of a Soil Carbon Research Center at OSU focused on research into current and future dryland production practices to increase profitability and yield, conserve soil, enhance soil water storage, and promote sequestration of carbon for soil health. Water Conservation and Habitat Restoration: The bill includes a $30 million for the Watershed and Flood Prevention Operations in Oregon. Funding is included for irrigation districts that need to improve water efficiency and conservation or otherwise improve fish and wildlife habitat. This program is providing critical funding for the

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January 2021 | The Business Review

mass timber products that would enhance Oregon State University’s cutting-edge research. Summer EBT: The bill continues funding the Summer EBT program at $42 million. This program has provided much- needed nutrition for Oregon families during the summer months when schools are not in session. Food Corps: The bill provides an increase of $1 million for Food and Agriculture Service Learning. This program helps improve education resources for healthy eating especially among children. Hemp: The bill provides $16.5 million to implement provisions in the 2018 Farm Bill allowing for the cultivation of commercial hemp, which can be used to make everything from cloth and rope to oil and soap. Hemp has already quickly become one of Oregon’s leading cash crops, and many feel has the potential to bring in more than $1 billion in sales to Oregon in the coming years, but only with a fair and reasonable regulatory framework. In addition, the explanatory statement highlights several concerns raised by Oregon hemp producers over the USDA’s proposed testing and sampling regulations, and directs the USDA to ensure that the final rule for the Domestic Hemp Program is based on science and will ensure a fair and reasonable regulatory framework for commercial hemp producers. The bill also: • Extends the 2014 hemp pilot program until January 1, 2022, providing hundreds of Oregon farmers clear operating guidelines as the USDA smooths out regulatory challenges; • Encourages the USDA to study the usage and impact of energy and water in hemp cultivation and to make recommendations on best practices and standards; • Directs the agency to establish and maintain a hemp germplasm repository for hemp breeding purposes; • Provides $2 million for the agency to conduct regionally-driven research, development, and stakeholder engagement to improve understanding of how to effectively integrate hemp into existing agricultural cropping, processing, and marketing systems; and • Directs the USDA to work with institutions under its jurisdiction to provide access to guaranteed loans for hemp producers and businesses. Food and Drug Administration (FDA): The bill provides $3.2 billion in discretionary funding for FDA. As FDA continues to be on the frontlines of addressing COVID-19, the bill ensures the agency continues to have adequate funding to respond to this urgent need. The bill also includes an additional $5 million for FDA to continue work on a regulatory pathway for CBD, a product derived from hemp. n

Rural Oregon will be the focus of newest spending bill.

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collaborative processes underway across the state working to conserve water and keep Oregon’s family farms in business while improving the habitats of endangered species. Construction has begun on several key projects to address water resource interests in Central Oregon, including in Tumalo Irrigation District and Central Oregon Irrigation District, and funding announced today will allow further expansion across the state, such as the East Fork Irrigation District project that has broken ground in Hood River. Pacific Shellfish: The bill includes $3.5 million of federal funding for cutting-edge research to improve the productivity, sustainability, and health of the Pacific shellfish agricultural system. This research is critical to efforts to mitigate the impacts of climate chaos on the health and economies of Oregon’s coastal communities. Western Rangeland Livestock: The bill includes $3 million for the establishment of a Western Rangeland Precision Livestock center to develop precision-based nutrition strategies for rangeland-based livestock, as well as technology-based rangeland and livestock management strategies to optimize the health and productivity of Western rangeland-based livestock and the rangeland ecosystem. This funding will be split among land grant universities in Oregon, Montana, and Wisconsin. Agricultural Research: The Agricultural Research Service received an increase of $77 million in funding for cutting- edge research to improve the productivity, sustainability, and health of the nation’s agricultural systems. In addition, Merkley was able to secure funding for key Oregon agriculture research programs, including funding for research on the Sudden Oak Death pathogen plaguing the south coast. Other research funding victories include research for alfalfa, barley, tree fruits, pear, wheat, hops, hemp, apple, shellfish, small fruits, seaweed, floriculture, nurseries, and rangeland ecology. Mass Timber Products: The advanced wood products program at USDA received $3.5 million for work on

The Business Review | January 2021

January 2021 | The Business Review

REPRESENTING BUSINESS ISSUES

Congressman Cliff Bentz Sworn in to Represent Oregon’s Second Congressional District Washington, D.C. T oday, Congressman Cliff Bentz was formally sworn in as a Member of the 117th United States Congress. Bentz was accompanied by his wife, Dr. Lindsay Norman. “It is an honor to represent the citizens of Oregon’s Second

Cliff Bentz is a third generation Oregonian, rancher, businessman, attorney, and a former state legislator. He was elected to represent the Second Congressional District of Oregon on November 3, 2020. The district includes all or part of 20 counties across northern, eastern, central, and southern Oregon. n

Congressional District, and I humbly thank them for entrusting me with this responsibility,” said Bentz. “I will fight every day to protect rural communities and stand up for Oregon values in Congress.”

The Business Review | January 2021

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