talkingpointsmemo--2020-04-24--Millions of People Face Stimulus Check Delays for a Strange Reason: They Are Poor

This story first appeared at ProPublica .
ProPublica is a Pulitzer Prize-winning investigative newsroom .
Sign up for The Big Story newsletter to receive stories like this one in your inbox .
Last week , a group of angry and desperate Citi Tax Financial customers gathered outside the company ’ s storefront in Augusta , Georgia .
Millions of Americans had received a big deposit from the IRS in their bank accounts , but they had not .
The IRS website told them their coronavirus stimulus checks were deposited in an account they didn ’ t recognize .
With an @ @ @ @ @ @ @ s Office beside him and another officer shouting for people to be quiet , the tax preparation company ’ s owner told the crowd of about 60 , only a few of whom wore masks , that he didn ’ t have their money .
Because of the baroque machinery that runs the tax preparation industry , the IRS had sent the money to a bank Citi Tax works with but the customers had not heard of .
That bank sent the payments back to the IRS .
Citi Tax ’ s clients @ @ @ @ @ @ @ tax brands such as H & R Block , Jackson Hewitt and TurboTax — didn ’ t get their money for the very reason Congress wanted to get money to them quickly in the first place : They are poor .
The Georgia customers , almost all black women , are among the likely millions of Americans who are having trouble getting the stimulus funds they are owed .
The IRS ’ difficulty in swiftly getting payments to Americans has a basic , root cause : There are multiple private actors sitting between @ @ @ @ @ @ @ Because we have an entire industry that survives on — and is a huge force in maintaining — this system in which they are third-party intermediaries , you end up with these delays and complications , ” said Chi Chi Wu , an attorney at the National Consumer Law Center .
The stimulus problems are part of a constellation of pain faced by the poor in accessing CARES Act money , from the possibility that banks could seize the money to pay off debts to advocates ’ fear that , when paper checks @ @ @ @ @ @ @ a hefty chunk .
The tax prep business is built on a complex infrastructure designed to extract fees that many customers can not afford .
When the government tried to navigate that system to speedily get cash to its citizens , it ran into big problems .
The IRS estimates that it will send the $ 292 billion in CARES Act money to 171 million Americans .
The first wave of payments sent out last week was targeted to less than half of those eligible : 80 million Americans whose 2018 or 2019 @ @ @ @ @ @ @ To disburse most of the remaining payments , the agency is planning to mail 81 million paper checks bearing the president ’ s name , according to an IRS budget document .
But for a large portion of the 80 million people the IRS tried to reach last week , “ direct deposit ” is a bit of a misnomer .
Each year , the tax refunds of more than 20 million Americans , including many of Citi Tax ’ s customers , take a detour .
These customers don ’ t pay @ @ @ @ @ @ @ opting to have the fee taken out of their refund .
Because regulations prohibit tax prep companies from receiving refunds directly , a special , temporary account is created at a bank that plays the middleman .
The bank takes out whatever fees are owed and then passes the remainder on to the customer .
Now some of these waystation banks are sending the checks back to the IRS , saying in public statements they received them by mistake , causing significant confusion and delays .
And it ’ s possible that some @ @ @ @ @ @ @ the stimulus money makes its way to those the government was trying to help .
Citi Tax customers aren ’ t the only ones facing problems .
After ProPublica posted a questionnaire about stimulus payment problems last Friday evening , around 1,400 responses flooded in .
People told us about madly refreshing the Get My Payment page from the IRS and calling their banks and tax preparers .
Some said they needed the money for food .
Some said they had been notified that payments went to accounts they didn ’ t recognize @ @ @ @ @ @ @ told they had been paid , but the money hadn ’ t arrived .
“ My daughter and I are starving here , and we don ’ t have much of a shelter .
I don ’ t know what we ’ re going to do if we don ’ t get this now , ” said Aaron Buckels , a cashier in Crawfordsville , Indiana .
Like many others who wrote in , Buckels depends on his tax refund every year .
He was eligible to file his taxes for free .
@ @ @ @ @ @ @ taxes through TurboTax , which charged him $ 80 , according to his receipt .
He was unable to afford that upfront .
So , he paid another fee , $ 40 more , for TurboTax to use his refund to pay what he owed the company for preparing his return .
When it came to receiving what remained of his refund , Buckels chose to have it deposited on a debit card , an option heavily promoted by TurboTax .
The company pitches the Turbo Card option as a way to get @ @ @ @ @ @ @ fine print reveals that it ’ s only faster than a paper check .
It also comes with additional charges , including a $ 4.95 monthly fee .
That ’ s where the IRS was going to send Buckels ’ stimulus money , according to the agency ’ s Get My Payment page .
But the funds haven ’ t arrived .
Buckels was one of more than 50 TurboTax users who got both a refund transfer and a Turbo Card who told ProPublica they ’ d yet to receive their payments .
@ @ @ @ @ @ @ the breakdown occurred between the IRS , the bank that handled the refund transfer and the debit card .
Despite numerous customercomplaints about delays , a spokesman for TurboTax-maker Intuit , Rick Heineman , said , “ These are TurboTax customers and needed stimulus payments , so our actions reflect our efforts to deliver the funds to accounts as quickly as possible with no delay and no fees.
” He added that , “ The IRS is ultimately responsible for determining how and when the stimulus payments will be delivered to Americans.
” @ @ @ @ @ @ @ tax prep industry ’ s business model .
Because low-income filers often do not have enough money on hand to pay high preparation fees , the companies need a way to effectively front them money .
A low-income , single mother with two children pays about $ 360 to have her taxes prepared at H & R Block , according to a company pricing chart .
With a refund transfer ( $ 40 ) , the toll rises to $ 400 .
The equivalent cost at Jackson Hewitt , the second largest chain @ @ @ @ @ @ @ to an estimate provided by a company employee .
Such a customer can probably expect a tax refund in the thousands of dollars because of antipoverty tax credits , which helps dull the pain of giving up several hundred dollars for tax prep help .
Refund transfers are very common across the industry .
For example , almost half the customers at Liberty Tax , the third-largest chain , get a refund transfer .
They are most common among taxpayers with income between $ 10,000 and $ 25,000 , according to IRS statistics @ @ @ @ @ @ @ with other products .
Those include promotional cards that come with fees of their own .
H & R Block ’ s Emerald Card promises “ easy access to your tax refund.
” But it charges users $ 1.50 to check their balance ; $ 3 for an ATM withdrawal ; a $ 4.95 “ inactivity ” fee ; and $ 35 to cash out the card at a bank .
Last year H & R Block reported $ 268 million in revenue from refund transfer and prepaid debit fees .
Consumer advocates @ @ @ @ @ @ @ essentially loans with effective annual interest rates over 200 % : $ 40 to $ 60 in finance charges just for deferring the tax prep cost by the few weeks it takes for a refund to arrive .
And although the fees are generally disclosed to taxpayers , ProPublica has heard from dozens of taxpayers who didn ’ t understand why they were being charged or what the transfer meant .
Over the past week , the transfers emerged as a major problem for a different reason .
For most taxpayers who got @ @ @ @ @ @ @ to have been tripped up because it had information for two accounts , the middleman ’ s and the final destination , instead of one .
That complication has apparently been a challenge for the IRS , which Congress has gutted with budget cuts over the past 10 years .
In a statement to ProPublica , an H & R Block spokesperson pointed the finger at the government .
The IRS has “ created confusion by not always using clients ’ final destination bank account information for stimulus payments , ” the spokesperson @ @ @ @ @ @ @ ’ frustration that many of them have not yet received these much-needed payments due to IRS decisions , and we are actively working with the IRS to get stimulus payments sent directly to client accounts.
” In a new FAQ on the IRS website , the agency confirmed that , “ In some cases , your Economic Impact Payment may have been directed to the bank account associated with the refund settlement product or prepaid debit card.
” Confusing matters even more , the agency said that there was an error on its @ @ @ @ @ @ @ inaccurately indicated rejected payments were being sent back to the same taxpayer account a second time.
” In fact , those payments would be mailed to tax filers , the agency said .
Among the filers affected by this additional glitch were customers of MetaBank .
The publicly traded South Dakota-based firm provides refund transfers for independent tax prep storefronts like Citi Tax in Augusta .
The IRS wrongly sent about 300,000 payments to MetaBank ’ s temporary accounts , according to one of the bank ’ s tax prep partners .
Many @ @ @ @ @ @ @ their stimulus money .
The bank said in a statement it is “ deeply concerned ” by the delays and referred users to the IRS .
Citi Tax is typical of the industry in many ways .
Refund transfers are most common in the South and particularly in counties with large black populations .
Richmond County , where Citi Tax is located , is majority black and about a third of taxpayers there with income under $ 25,000 get a refund transfer , according to IRS data .
The transfers tend to accompany @ @ @ @ @ @ @ , one of the country ’ s largest antipoverty programs and one primarily targeted at low-income workers with children .
This helps explain why the crowd outside Citi Tax was largely women .
Citi Tax is also a prime example of an industry that is largely unregulated .
The store used to be part of the Instant Tax chain — once the fourth-largest tax prep chain in the U.S. until it was shut down in 2013 for what a Justice Department attorney called “ an astonishing array of repeated fraudulent and deceptive conduct.
@ @ @ @ @ @ @ Michael , the Instant Tax location simply changed names and continued on .
Michael himself has been hit with over $ 90,000 in penalties by the IRS , according to liens filed against him over the last three years .
But the IRS lacks the authority to prevent Michael from continuing to prepare hundreds of returns each year simply because of such violations .
Michael did not respond to questions from ProPublica .
Even after more than a week of confusion , many tax filers still do not have their checks and it @ @ @ @ @ @ @ the system ’ s machinery broke down .
On Reddit and Facebook , frustrated tax filers looking for answers have created groups like “ justice for Metabank Customers ” and “ H & R Block stimulus group ” that have ballooned in recent days .
Some people who wrote to ProPublica have been told to expect paper checks , despite their wish to get direct deposit .
Others continue to get a payment status unknown message from the IRS website .
And adding to the mess , the banks that process refund transfers @ @ @ @ @ @ @ say they ’ ve sent payments back to the IRS , some say they will mail taxpayers checks themselves , and still others say they will send payments electronically .
Additionally , Santa Barbara Tax Products Group , a subsidiary of the publicly traded Green Dot Corporation , suggests on its website that fees may be taken out of stimulus payments in some cases .
“ In the rare event that payments are inadvertently sent to [ Santa Barbara ] , a plan is in place to help identify and expedite the return @ @ @ @ @ @ @ so that the IRS can reissue payments directly to affected taxpayers as soon as possible , ” the statement says .
“ If we are unable to identify the payment as an Economic Impact Payment , the deposit will be processed as a federal refund , with all associated fees withheld from the deposit amount.
” Santa Barbara is the largest processor of refund transfers , handling them for several tax prep brands , including TurboTax .
An Intuit spokesman said its customers would not be charged fees .

This story first appeared at ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.
Last week, a group of angry and desperate Citi Tax Financial customers gathered outside the company’s storefront in Augusta, Georgia. Millions of Americans had received a big deposit from the IRS in their bank accounts, but they had not. The IRS website told them their coronavirus stimulus checks were deposited in an account they didn’t recognize.
With an officer from the Richmond County Sheriff’s Office beside him and another officer shouting for people to be quiet, the tax preparation company’s owner told the crowd of about 60, only a few of whom wore masks, that he didn’t have their money.
Because of the baroque machinery that runs the tax preparation industry, the IRS had sent the money to a bank Citi Tax works with but the customers had not heard of. That bank sent the payments back to the IRS.
Citi Tax’s clients — just like some clients of big tax brands such as H&R Block, Jackson Hewitt and TurboTax — didn’t get their money for the very reason Congress wanted to get money to them quickly in the first place: They are poor. The Georgia customers, almost all black women, are among the likely millions of Americans who are having trouble getting the stimulus funds they are owed. The IRS’ difficulty in swiftly getting payments to Americans has a basic, root cause: There are multiple private actors sitting between the IRS and tax filers.
“Because we have an entire industry that survives on — and is a huge force in maintaining — this system in which they are third-party intermediaries, you end up with these delays and complications,” said Chi Chi Wu, an attorney at the National Consumer Law Center.
The stimulus problems are part of a constellation of pain faced by the poor in accessing CARES Act money, from the possibility that banks could seize the money to pay off debts to advocates’ fear that, when paper checks arrive, the check-cashing industry will snatch a hefty chunk.
The tax prep business is built on a complex infrastructure designed to extract fees that many customers cannot afford. When the government tried to navigate that system to speedily get cash to its citizens, it ran into big problems.
The IRS estimates that it will send the $292 billion in CARES Act money to 171 million Americans. The first wave of payments sent out last week was targeted to less than half of those eligible: 80 million Americans whose 2018 or 2019 tax refunds had been directly deposited. To disburse most of the remaining payments, the agency is planning to mail 81 million paper checks bearing the president’s name, according to an IRS budget document.
But for a large portion of the 80 million people the IRS tried to reach last week, “direct deposit” is a bit of a misnomer. Each year, the tax refunds of more than 20 million Americans, including many of Citi Tax’s customers, take a detour. These customers don’t pay their tax preparation fees upfront, instead opting to have the fee taken out of their refund. Because regulations prohibit tax prep companies from receiving refunds directly, a special, temporary account is created at a bank that plays the middleman. The bank takes out whatever fees are owed and then passes the remainder on to the customer.
Now some of these waystation banks are sending the checks back to the IRS, saying in public statements they received them by mistake, causing significant confusion and delays. And it’s possible that some of these banks will extract fees before the stimulus money makes its way to those the government was trying to help.
Citi Tax customers aren’t the only ones facing problems. After ProPublica posted a questionnaire about stimulus payment problems last Friday evening, around 1,400 responses flooded in. People told us about madly refreshing the Get My Payment page from the IRS and calling their banks and tax preparers. Some said they needed the money for food. Some said they had been notified that payments went to accounts they didn’t recognize. Others said they’d been told they had been paid, but the money hadn’t arrived.
“My daughter and I are starving here, and we don’t have much of a shelter. I don’t know what we’re going to do if we don’t get this now,” said Aaron Buckels, a cashier in Crawfordsville, Indiana.
Like many others who wrote in, Buckels depends on his tax refund every year. He was eligible to file his taxes for free. Not knowing that, he did his taxes through TurboTax, which charged him $80, according to his receipt.
He was unable to afford that upfront. So, he paid another fee, $40 more, for TurboTax to use his refund to pay what he owed the company for preparing his return. When it came to receiving what remained of his refund, Buckels chose to have it deposited on a debit card, an option heavily promoted by TurboTax. The company pitches the Turbo Card option as a way to get refunds “fast” — but the fine print reveals that it’s only faster than a paper check. It also comes with additional charges, including a $4.95 monthly fee.
That’s where the IRS was going to send Buckels’ stimulus money, according to the agency’s Get My Payment page. But the funds haven’t arrived. Buckels was one of more than 50 TurboTax users who got both a refund transfer and a Turbo Card who told ProPublica they’d yet to receive their payments. It’s still not clear where the breakdown occurred between the IRS, the bank that handled the refund transfer and the debit card.
Despite numerous customercomplaints about delays, a spokesman for TurboTax-maker Intuit, Rick Heineman, said, “These are TurboTax customers and needed stimulus payments, so our actions reflect our efforts to deliver the funds to accounts as quickly as possible with no delay and no fees.” He added that, “The IRS is ultimately responsible for determining how and when the stimulus payments will be delivered to Americans.”
Refund transfers are a cornerstone of the tax prep industry’s business model. Because low-income filers often do not have enough money on hand to pay high preparation fees, the companies need a way to effectively front them money.
A low-income, single mother with two children pays about $360 to have her taxes prepared at H&R Block, according to a company pricing chart. With a refund transfer ($40), the toll rises to $400. The equivalent cost at Jackson Hewitt, the second largest chain, would be $610, according to an estimate provided by a company employee.
Such a customer can probably expect a tax refund in the thousands of dollars because of antipoverty tax credits, which helps dull the pain of giving up several hundred dollars for tax prep help. Refund transfers are very common across the industry. For example, almost half the customers at Liberty Tax, the third-largest chain, get a refund transfer. They are most common among taxpayers with income between $10,000 and $25,000, according to IRS statistics.
Refund transfers are also often sold with other products. Those include promotional cards that come with fees of their own. H&R Block’s Emerald Card promises “easy access to your tax refund.” But it charges users $1.50 to check their balance; $3 for an ATM withdrawal; a $4.95 “inactivity” fee; and $35 to cash out the card at a bank. Last year H&R Block reported $268 million in revenue from refund transfer and prepaid debit fees.
Consumer advocates argue transfers are predatory because they are essentially loans with effective annual interest rates over 200%: $40 to $60 in finance charges just for deferring the tax prep cost by the few weeks it takes for a refund to arrive. And although the fees are generally disclosed to taxpayers, ProPublica has heard from dozens of taxpayers who didn’t understand why they were being charged or what the transfer meant.
Over the past week, the transfers emerged as a major problem for a different reason. For most taxpayers who got a refund transfer, the IRS seems to have been tripped up because it had information for two accounts, the middleman’s and the final destination, instead of one. That complication has apparently been a challenge for the IRS, which Congress has gutted with budget cuts over the past 10 years.
The IRS didn’t respond to questions.
In a statement to ProPublica, an H&R Block spokesperson pointed the finger at the government. The IRS has “created confusion by not always using clients’ final destination bank account information for stimulus payments,” the spokesperson said. “We share our clients’ frustration that many of them have not yet received these much-needed payments due to IRS decisions, and we are actively working with the IRS to get stimulus payments sent directly to client accounts.”
In a new FAQ on the IRS website, the agency confirmed that, “In some cases, your Economic Impact Payment may have been directed to the bank account associated with the refund settlement product or prepaid debit card.”
Confusing matters even more, the agency said that there was an error on its Get My Payment website, which “inaccurately indicated rejected payments were being sent back to the same taxpayer account a second time.” In fact, those payments would be mailed to tax filers, the agency said.
Among the filers affected by this additional glitch were customers of MetaBank. The publicly traded South Dakota-based firm provides refund transfers for independent tax prep storefronts like Citi Tax in Augusta. The IRS wrongly sent about 300,000 payments to MetaBank’s temporary accounts, according to one of the bank’s tax prep partners. Many customers say they are still waiting for their stimulus money. The bank said in a statement it is “deeply concerned” by the delays and referred users to the IRS.
Citi Tax is typical of the industry in many ways. Refund transfers are most common in the South and particularly in counties with large black populations. Richmond County, where Citi Tax is located, is majority black and about a third of taxpayers there with income under $25,000 get a refund transfer, according to IRS data. The transfers tend to accompany returns involving the earned income tax credit, one of the country’s largest antipoverty programs and one primarily targeted at low-income workers with children. This helps explain why the crowd outside Citi Tax was largely women.
Citi Tax is also a prime example of an industry that is largely unregulated. The store used to be part of the Instant Tax chain — once the fourth-largest tax prep chain in the U.S. until it was shut down in 2013 for what a Justice Department attorney called “an astonishing array of repeated fraudulent and deceptive conduct.”
Under the same owner, Yonathan Michael, the Instant Tax location simply changed names and continued on. Michael himself has been hit with over $90,000 in penalties by the IRS, according to liens filed against him over the last three years. But the IRS lacks the authority to prevent Michael from continuing to prepare hundreds of returns each year simply because of such violations. Michael did not respond to questions from ProPublica.
Even after more than a week of confusion, many tax filers still do not have their checks and it’s unclear precisely which part of the system’s machinery broke down. On Reddit and Facebook, frustrated tax filers looking for answers have created groups like “justice for Metabank Customers” and “H&R Block stimulus group” that have ballooned in recent days.
Some people who wrote to ProPublica have been told to expect paper checks, despite their wish to get direct deposit. Others continue to get a payment status unknown message from the IRS website. And adding to the mess, the banks that process refund transfers are handling the problems differently. Some say they’ve sent payments back to the IRS, some say they will mail taxpayers checks themselves, and still others say they will send payments electronically.
Additionally, Santa Barbara Tax Products Group, a subsidiary of the publicly traded Green Dot Corporation, suggests on its website that fees may be taken out of stimulus payments in some cases.
“In the rare event that payments are inadvertently sent to [Santa Barbara], a plan is in place to help identify and expedite the return of these payments immediately to the IRS so that the IRS can reissue payments directly to affected taxpayers as soon as possible,” the statement says. “If we are unable to identify the payment as an Economic Impact Payment, the deposit will be processed as a federal refund, with all associated fees withheld from the deposit amount.”
Santa Barbara is the largest processor of refund transfers, handling them for several tax prep brands, including TurboTax. An Intuit spokesman said its customers would not be charged fees.


talkingpointsmemo--2020-04-24--Citing Heart Problems, FDA Calls For Limiting Use Of Antimalarial Drugs Trump Championed

The Food and Drug Administration on Friday warned that heart complications caused by the antimalarial medications championed by President Donald Trump “ can be life-threatening.
” The FDA flagged “ reports of serious heart rhythm problems ” in COVID-19 patients treated with the antimalarials Trump has hyped , hydroxychloroquine or chloroquine .
It also pointed out the “ increased use of these medicines through outpatient prescriptions.
” “ Therefore , we would like to remind health care professionals and patients of the known risks associated with both hydroxychloroquine and chloroquine , ” the agency said , warning against using the @ @ @ @ @ @ @ setting .
Trump has for weeks boosted the drugs despite the lack of widespread evidence that they are effective against COVID-19 .
A study of VA hospital patients recently failed to find hydroxychloroquine effective against the disease , and a Brazilian study of chloroquine use on COVID-19 patients was halted due to the risk of fatal heart rate irregularities like those described in the FDA warning .
Just last month the FDA issued an emergency use authorization , or EUA , to allow millions of donated doses of chloroquine and hydroxychloroquine to be @ @ @ @ @ @ @ officials .
The director of the agency that received the authorization , who was recently demoted to another role , alleged this week that he faced political pressure to allow the widespread use of the drug .
At the time the EUA was issued , in late March , medical and regulatory experts rang alarm bells about insufficient evidence supporting the drugs .
“ I would like to see who [ at the FDA ’ s Medical Countermeasures Initiative ] signed off on this EUA despite the total lack of scientific evidence that @ @ @ @ @ @ @ COVID-19 , ” Luciana Borio , the FDA ’ s former acting top scientist , wrote in response to the emergency authorization .
“ EUA is supposed to be issued when the evidence indicates that benefits outweigh the risks.
” Trump ’ s boosterism of the drugs has prompted fear among regular users — the medicines were used to treat lupus and rheumatoid arthritis long before the COVID-19 pandemic — about supply issues .
The heart complications among COVID-19 patients using the antimalarials have arisen more recently as the drugs have come under @ @ @ @ @ @ @ to investigate these safety risks in patients with COVID-19 and will communicate publicly when more information is available , ” the FDA wrote .

The Food and Drug Administration on Friday warned that heart complications caused by the antimalarial medications championed by President Donald Trump “can be life-threatening.”
The FDA flagged “reports of serious heart rhythm problems” in COVID-19 patients treated with the antimalarials Trump has hyped, hydroxychloroquine or chloroquine. It also pointed out the “increased use of these medicines through outpatient prescriptions.”
“Therefore, we would like to remind health care professionals and patients of the known risks associated with both hydroxychloroquine and chloroquine,” the agency said, warning against using the drugs outside of a clinical or hospital setting.
Trump has for weeks boosted the drugs despite the lack of widespread evidence that they are effective against COVID-19.
A study of VA hospital patients recently failed to find hydroxychloroquine effective against the disease, and a Brazilian study of chloroquine use on COVID-19 patients was halted due to the risk of fatal heart rate irregularities like those described in the FDA warning.
Just last month the FDA issued an emergency use authorization, or EUA, to allow millions of donated doses of chloroquine and hydroxychloroquine to be distributed to hospitals through state public health officials. The director of the agency that received the authorization, who was recently demoted to another role, alleged this week that he faced political pressure to allow the widespread use of the drug.
At the time the EUA was issued, in late March, medical and regulatory experts rang alarm bells about insufficient evidence supporting the drugs.
“I would like to see who [at the FDA’s Medical Countermeasures Initiative] signed off on this EUA despite the total lack of scientific evidence that chloroquine/hydroxychloroquine are beneficial in the treatment of COVID-19,” Luciana Borio, the FDA’s former acting top scientist, wrote in response to the emergency authorization.
“EUA is supposed to be issued when the evidence indicates that benefits outweigh the risks.”
Trump’s boosterism of the drugs has prompted fear among regular users — the medicines were used to treat lupus and rheumatoid arthritis long before the COVID-19 pandemic — about supply issues. The heart complications among COVID-19 patients using the antimalarials have arisen more recently as the drugs have come under increased scrutiny.
“We are continuing to investigate these safety risks in patients with COVID-19 and will communicate publicly when more information is available,” the FDA wrote.


talkingpointsmemo--2020-04-24--Dueling Rallies Take Over Georgia Capitol Grounds As Businesses Can Reopen

The Georgia state capitol grounds in Atlanta will be occupied by both supporters and detractors of Gov .
Brian Kemp ’ s ( R ) decision to let some businesses reopen on Friday , representative of the divided state .
Kemp announced earlier in the week that he would allow gyms , nail salons , stores and bowling alleys to open Friday , with another wave of greenlights issued to movie theaters and full-service restaurants on Monday .
He is reopening wide swaths of the economy much earlier than other states , receiving some criticism from local officials about the @ @ @ @ @ @ @ transmission of COVID-19 .
“ Stay home .
Nothing has changed , ” Atlanta Mayor Keisha Bottoms ( D ) told CNN Friday morning , describing her advice to residents of the city .
“ People are still getting infected .
People are still dying.
” Athens-Clark County Mayor Kelly Girtz , also a Democrat , said that he is telling his constituents to ignore the governor ’ s announcement .
“ I ’ m exhorting everybody in this community to continue to shelter in place , ” he said .
“ Do @ @ @ @ @ @ @ ’ s not the time to do it.
” On Friday morning , the Concerned Black Clergy of Metropolitan Atlanta , a group of faith leaders in the capital city , held a press conference across the way from the capitol building to oppose the reopening .
Speakers included a slate of church leaders , State Senator Donzella James ( D ) and the president of the Atlanta chapter of the NAACP , and represents the contingent of local voices that has bashed Kemp for the reopening .
The local NAACP in particular @ @ @ @ @ @ @ and has been encouraging a “ Black Out Sick Out , ” urging people to ignore Kemp ’ s announcement and to stay home .
Shortly after the press conference , a very different rally representing a very different mindset will claim the space surrounding the capitol .
A group called Reopen GA is hosting an “ End Shutdown ” event , and encouraging participants to bring flags and signs to get Georgia “ back in business.
” As to what they are actually protesting now that Kemp has green-lit the opening of @ @ @ @ @ @ @ seems to be a matter of principle .
“ We are protesting that the government did not have the constitutional right to shut down the economy in the first place , ” organizer Jose Montes told TPM .
The protest is being led by Shane Hazel , a Libertarian candidate for Sen. Kelly Loeffler ’ s ( R ) senate seat .
On his Facebook page , he called to “ assemble the peaceful army ” of protesters , his message emblazoned on a picture of President George Washington holding a machine gun @ @ @ @ @ @ @ peaceful people & threatening their businesses while arbitrarily decreeing some people , their jobs , their businesses , their trades & their families “ nonessential ” is the most Statists 1938 Germany thing I ’ ve ever witnessed and there needs to be justice , ” he wrote .
Per Montes , around 200 people planned to attend the event before Kemp ’ s announcement , though he is unsure how many will show up now that much of their cause has been won .
“ We want to be clear that we @ @ @ @ @ @ @ That congratulatory attitude is shared by Georgia ’ s U.S .
Senators , Loeffler and David Perdue , both of whom earlier this week applauded Kemp ’ s efforts .
But not every Republican is on board .
President Donald Trump said Wednesday that he “ totally disagrees ” with Kemp ’ s decision to reopen businesses so early .
In reality , per CNN , Trump initially approved of the plan before being dissuaded by Dr. Deborah Birx on behalf of the members of the White House ’ s coronavirus task force @ @ @ @ @ @ @ .
The President doubled down on his disapproval during his Thursday press briefing .
“ I want the states to open more than he does .
Much more than he does , ” he said .
“ But I didn ’ t like to see spas at this early stage .
Nor did the doctors.
” “ I didn ’ t like to see a lot of things happening , and I wasn ’ t happy with it , ” he added .
“ And I wasn ’ t happy with Brian Kemp @ @

The Georgia state capitol grounds in Atlanta will be occupied by both supporters and detractors of Gov. Brian Kemp’s (R) decision to let some businesses reopen on Friday, representative of the divided state.
Kemp announced earlier in the week that he would allow gyms, nail salons, stores and bowling alleys to open Friday, with another wave of greenlights issued to movie theaters and full-service restaurants on Monday.
He is reopening wide swaths of the economy much earlier than other states, receiving some criticism from local officials about the catastrophic affect it could have on the transmission of COVID-19.
“Stay home. Nothing has changed,” Atlanta Mayor Keisha Bottoms (D) told CNN Friday morning, describing her advice to residents of the city. “People are still getting infected. People are still dying.”
Athens-Clark County Mayor Kelly Girtz, also a Democrat, said that he is telling his constituents to ignore the governor’s announcement.
“I’m exhorting everybody in this community to continue to shelter in place,” he said. “Do not reopen at this point. It’s not the time to do it.”
On Friday morning, the Concerned Black Clergy of Metropolitan Atlanta, a group of faith leaders in the capital city, held a press conference across the way from the capitol building to oppose the reopening. Speakers included a slate of church leaders, State Senator Donzella James (D) and the president of the Atlanta chapter of the NAACP, and represents the contingent of local voices that has bashed Kemp for the reopening.
The local NAACP in particular has been active in its opposition, and has been encouraging a “Black Out Sick Out,” urging people to ignore Kemp’s announcement and to stay home.
Shortly after the press conference, a very different rally representing a very different mindset will claim the space surrounding the capitol.
A group called Reopen GA is hosting an “End Shutdown” event, and encouraging participants to bring flags and signs to get Georgia “back in business.”
As to what they are actually protesting now that Kemp has green-lit the opening of wide swaths of the economy, it seems to be a matter of principle.
“We are protesting that the government did not have the constitutional right to shut down the economy in the first place,” organizer Jose Montes told TPM.
The protest is being led by Shane Hazel, a Libertarian candidate for Sen. Kelly Loeffler’s (R) senate seat. On his Facebook page, he called to “assemble the peaceful army” of protesters, his message emblazoned on a picture of President George Washington holding a machine gun.
“The government pointing guns at peaceful people & threatening their businesses while arbitrarily decreeing some people, their jobs, their businesses, their trades & their families “nonessential” is the most Statists 1938 Germany thing I’ve ever witnessed and there needs to be justice,” he wrote.
Per Montes, around 200 people planned to attend the event before Kemp’s announcement, though he is unsure how many will show up now that much of their cause has been won.
“We want to be clear that we support Kemp,” Montes added.
That congratulatory attitude is shared by Georgia’s U.S. Senators, Loeffler and David Perdue, both of whom earlier this week applauded Kemp’s efforts.
But not every Republican is on board.
President Donald Trump said Wednesday that he “totally disagrees” with Kemp’s decision to reopen businesses so early.
In reality, per CNN, Trump initially approved of the plan before being dissuaded by Dr. Deborah Birx on behalf of the members of the White House’s coronavirus task force who refused to publicly support the move.
The President doubled down on his disapproval during his Thursday press briefing.
“I want the states to open more than he does. Much more than he does,” he said. “But I didn’t like to see spas at this early stage. Nor did the doctors.”
“I didn’t like to see a lot of things happening, and I wasn’t happy with it,” he added. “And I wasn’t happy with Brian Kemp.”


talkingpointsmemo--2020-04-25--Global Death Toll Tops 200,000 As Some States Start To Loosen Restrictions

ATLANTA ( AP ) — As the global death toll from the coronavirus surpassed 200,000 on Saturday , countries took cautious steps toward easing lockdowns imposed amid the pandemic , but fears of a surge in infections made even some outbreak-wounded businesses reluctant to reopen .
The states of Georgia , Oklahoma and Alaska started loosening restrictions on businesses despite warnings from experts that such steps might be premature .
Shawn Gingrich , CEO and founder of Lion ’ s Den Fitness , decided after the Georgia governor ’ s announcement that his Atlanta gym would remain closed for now @ @ @ @ @ @ @ much already , ” Gingrich said .
“ I feel like if we do this too soon , we ’ ll see a spike in cases and we ’ re back to square one.
” Others were eager to get back to business , with precautions .
Russ Anderson , who owns a tattoo studio in south Georgia , said he “ couldn ’ t get up out of my chair quick enough ” when restrictions were lifted .
His main shop served 50 or 60 customers Friday when it reopened , with @ @ @ @ @ @ @ he said .
The worldwide death toll was at 201,907 as of Saturday afternoon , according to a tally compiled by John Hopkins University from government figures .
The actual death toll is believed to be far higher .
India reopened neighborhood stores that many of the country ’ s 1.3 billion people rely on for everything from beverages to mobile phone data cards .
But the loosening didn ’ t apply to hundreds of quarantined towns and other places hit hardest by the outbreak that has killed at least 775 people in @ @ @ @ @ @ @ slums too crowded for social distancing .
Shopping malls also stayed closed nationwide .
Still , owners of small stores , being allowed to open again brought relief .
“ This is a good decision , ” said Amit Sharma , an architect .
“ We have to open a few things and let the economy start moving .
The poor people should have some source of income .
This virus is going to be a long-term problem.
” India also allowed manufacturing and farming to resume in rural areas last week to @ @ @ @ @ @ @ jobless by the March 24 lockdown .
The restrictions have allowed people out of their homes only to buy food , medicine or other essentials .
Elsewhere in Asia , authorities reported no new deaths Saturday for the 10th straight day in China , where the virus originated .
South Korea reported just 10 fresh cases , the eighth day in a row its daily increase was under 20 .
There were no new deaths for the second straight day .
Underscoring the unknowns about the virus , the World Health Organization said @ @ @ @ @ @ @ that people who have recovered from COVID-19 can not fall sick again .
Some countries extended or tightened restrictions , confirming a pattern of caution .
Sri Lanka had partially lifted a monthlong daytime curfew in more than two thirds of the country .
But it reimposed a 24-hour lockdown countrywide until Monday after a surge of 46 new infections , its highest increase in a day .
Norway extended until at least Sept. 1 its ban on events with more than 500 participants .
Spanish Prime Minister Pedro Sánchez announced that Spaniards @ @ @ @ @ @ @ for short walks and exercise starting May 2 after seven weeks of strict home confinement , though he said “ maximum caution will be our guideline.
” “ We must be very prudent because there is no manual , no roadmap to follow , ” he said .
Kids in Spain will get their first fresh air in weeks when a ban on letting them outside is relaxed starting Sunday .
After 44 days indoors , they ’ ll be allowed out for adult-supervised one-hour excursions no farther than 1 kilometer ( 0.6 @ @ @ @ @ @ @ not be permitted to play with others , and some nervous parents shopped online for child-size masks for them .
“ I really want to get outside , and Ema does as well , ” said Madrid resident Eva Novilo , speaking of her 7-year-old daughter .
But Novilo predicted “ difficult situations ” if they see her friends and have to stay apart .
“ I don ’ t know if we will be able to maintain control.
” Belgium sketched out plans for a progressive lockdown relaxation starting May 4 with @ @ @ @ @ @ @ and the reopening of textile and sewing shops to make face masks .
In Italy , where restrictions also will be eased May 4 , authorities warned against abandoning social distancing practices as millions return to work .
Free masks will be distributed to nursing homes , police , public officials and transportation workers .
Workers painted blue circles on Rome ’ s subway platforms to remind people to keep their distance when commuters return .
The country continues to have Europe ’ s highest death toll , with 26,384 deaths .
The @ @ @ @ @ @ @ that ended Saturday evening was the lowest toll since Italy registered 345 on March 17 , but only five fewer than Friday .
With gatherings banned , Italians celebrated the 75th anniversary of their liberation from occupation forces in World War II , emerging on balconies or rooftops at the same time to sing a folk song linked to resistance fighters .
Britain held off on changes to its lockdown as the virus-related death toll in hospitals topped 20,000 .
The figure doesn ’ t include deaths in nursing homes , likely to @ @ @ @ @ @ @ , the government prepared to ease one of Europe ’ s strictest lockdowns from May 11 .
The health minister detailed plans to scale up testing to help contain any new flare-ups .
Testing shortages also are a problem in Brazil , Latin America ’ s largest nation , which is veering closer to becoming a pandemic hot spot .
Officials in Rio de Janeiro and four other major cities warned that their hospital systems are on the verge of collapse or already overwhelmed .
In Manaus , the biggest city in the @ @ @ @ @ @ @ forced to dig mass graves in a cemetery .
Workers have been burying 100 corpses a day — triple the pre-virus average .
Along with Georgia , Oklahoma allowed salons , spas and barbershops to reopen , while Alaska cleared the way for restaurants to resume dine-in service and retail shops and other businesses to open their doors , all with limitations .
Some Alaska municipalities chose to keep stricter rules .
Though limited in scope , and subject to social-distancing restrictions , the reopenings marked a symbolic milestone in the debate raging @ @ @ @ @ @ @ to how quickly political leaders should lift economically devastating lockdown orders .
A survey from The Associated Press-NORC Center for Public Affairs Research found Americans overwhelmingly support stay-at-home measures and other efforts to prevent the spread of the virus .
On Friday , President Donald Trump spoke optimistically of the economy but also asked people to continue social distancing and using face coverings .
He also signed a $ 484 billion bill to aid employers and hospitals .
In the past five weeks , roughly 26 million people have filed for jobless aid @ @ @ @ @ @ @ workers .
Trump also said his widely criticized comments suggesting people can ingest or inject disinfectant to fight COVID-19 were an attempt at sarcasm .
In Texas , where retailers are allowed to sell items for curbside pickup , Allison Scott said most customers of her women ’ s clothing store in a Dallas shopping mall seem to feel more comfortable ordering online .
Scott thinks it ’ s still too risky to allow people to shop in person , and she can ’ t see people wanting to .
“ I want @ @ @ @ @ @ @ I don ’ t think that society is ready to come out either , ” she said .
Burnett reported from Chicago .
Associated Press journalists around the world contributed .

ATLANTA (AP) — As the global death toll from the coronavirus surpassed 200,000 on Saturday, countries took cautious steps toward easing lockdowns imposed amid the pandemic, but fears of a surge in infections made even some outbreak-wounded businesses reluctant to reopen.
The states of Georgia, Oklahoma and Alaska started loosening restrictions on businesses despite warnings from experts that such steps might be premature.
Shawn Gingrich, CEO and founder of Lion’s Den Fitness, decided after the Georgia governor’s announcement that his Atlanta gym would remain closed for now.
“We’ve sacrificed so much already,” Gingrich said. “I feel like if we do this too soon, we’ll see a spike in cases and we’re back to square one.”
Others were eager to get back to business, with precautions. Russ Anderson, who owns a tattoo studio in south Georgia, said he “couldn’t get up out of my chair quick enough” when restrictions were lifted. His main shop served 50 or 60 customers Friday when it reopened, with customers and tattoo artists wearing masks, he said.
The worldwide death toll was at 201,907 as of Saturday afternoon, according to a tally compiled by John Hopkins University from government figures. The actual death toll is believed to be far higher.
India reopened neighborhood stores that many of the country’s 1.3 billion people rely on for everything from beverages to mobile phone data cards. But the loosening didn’t apply to hundreds of quarantined towns and other places hit hardest by the outbreak that has killed at least 775 people in the country where many poor live in slums too crowded for social distancing.
Shopping malls also stayed closed nationwide. Still, owners of small stores, being allowed to open again brought relief.
“This is a good decision,” said Amit Sharma, an architect. “We have to open a few things and let the economy start moving. The poor people should have some source of income. This virus is going to be a long-term problem.”
India also allowed manufacturing and farming to resume in rural areas last week to ease the economic plight of millions left jobless by the March 24 lockdown. The restrictions have allowed people out of their homes only to buy food, medicine or other essentials.
Elsewhere in Asia, authorities reported no new deaths Saturday for the 10th straight day in China, where the virus originated. South Korea reported just 10 fresh cases, the eighth day in a row its daily increase was under 20. There were no new deaths for the second straight day.
Underscoring the unknowns about the virus, the World Health Organization said “there is currently no evidence” that people who have recovered from COVID-19 cannot fall sick again.
Some countries extended or tightened restrictions, confirming a pattern of caution.
Sri Lanka had partially lifted a monthlong daytime curfew in more than two thirds of the country. But it reimposed a 24-hour lockdown countrywide until Monday after a surge of 46 new infections, its highest increase in a day.
Norway extended until at least Sept. 1 its ban on events with more than 500 participants.
Spanish Prime Minister Pedro Sánchez announced that Spaniards will be allowed to leave their homes for short walks and exercise starting May 2 after seven weeks of strict home confinement, though he said “maximum caution will be our guideline.”
“We must be very prudent because there is no manual, no roadmap to follow,” he said.
Kids in Spain will get their first fresh air in weeks when a ban on letting them outside is relaxed starting Sunday. After 44 days indoors, they’ll be allowed out for adult-supervised one-hour excursions no farther than 1 kilometer (0.6 miles) from home. They will not be permitted to play with others, and some nervous parents shopped online for child-size masks for them.
“I really want to get outside, and Ema does as well,” said Madrid resident Eva Novilo, speaking of her 7-year-old daughter. But Novilo predicted “difficult situations” if they see her friends and have to stay apart. “I don’t know if we will be able to maintain control.”
Belgium sketched out plans for a progressive lockdown relaxation starting May 4 with the resumption of nonessential treatment in hospitals and the reopening of textile and sewing shops to make face masks.
In Italy, where restrictions also will be eased May 4, authorities warned against abandoning social distancing practices as millions return to work. Free masks will be distributed to nursing homes, police, public officials and transportation workers. Workers painted blue circles on Rome’s subway platforms to remind people to keep their distance when commuters return.
The country continues to have Europe’s highest death toll, with 26,384 deaths. The 415 deaths registered in the 24-hour period that ended Saturday evening was the lowest toll since Italy registered 345 on March 17, but only five fewer than Friday.
With gatherings banned, Italians celebrated the 75th anniversary of their liberation from occupation forces in World War II, emerging on balconies or rooftops at the same time to sing a folk song linked to resistance fighters.
Britain held off on changes to its lockdown as the virus-related death toll in hospitals topped 20,000. The figure doesn’t include deaths in nursing homes, likely to be in the thousands.
In France, the government prepared to ease one of Europe’s strictest lockdowns from May 11. The health minister detailed plans to scale up testing to help contain any new flare-ups.
Testing shortages also are a problem in Brazil, Latin America’s largest nation, which is veering closer to becoming a pandemic hot spot.
Officials in Rio de Janeiro and four other major cities warned that their hospital systems are on the verge of collapse or already overwhelmed. In Manaus, the biggest city in the Amazon, officials said they have been forced to dig mass graves in a cemetery. Workers have been burying 100 corpses a day — triple the pre-virus average.
Along with Georgia, Oklahoma allowed salons, spas and barbershops to reopen, while Alaska cleared the way for restaurants to resume dine-in service and retail shops and other businesses to open their doors, all with limitations. Some Alaska municipalities chose to keep stricter rules.
Though limited in scope, and subject to social-distancing restrictions, the reopenings marked a symbolic milestone in the debate raging in the United States and beyond as to how quickly political leaders should lift economically devastating lockdown orders. A survey from The Associated Press-NORC Center for Public Affairs Research found Americans overwhelmingly support stay-at-home measures and other efforts to prevent the spread of the virus.
On Friday, President Donald Trump spoke optimistically of the economy but also asked people to continue social distancing and using face coverings. He also signed a $484 billion bill to aid employers and hospitals. In the past five weeks, roughly 26 million people have filed for jobless aid, or about 1 in 6 U.S. workers.
Trump also said his widely criticized comments suggesting people can ingest or inject disinfectant to fight COVID-19 were an attempt at sarcasm.
In Texas, where retailers are allowed to sell items for curbside pickup, Allison Scott said most customers of her women’s clothing store in a Dallas shopping mall seem to feel more comfortable ordering online. Scott thinks it’s still too risky to allow people to shop in person, and she can’t see people wanting to.
“I want to be open more than anything but I don’t think that society is ready to come out either,” she said.
—-
Burnett reported from Chicago. Associated Press journalists around the world contributed.
Follow AP pandemic coverage at http://apnews.com/VirusOutbreak and https://apnews.com/UnderstandingtheOutbreak


talkingpointsmemo--2020-04-25--FEMA Diverted Masks From Veterans Hospitals, VA Official Says

The Federal Emergency Management Agency diverted masks from veterans hospitals and into the government ’ s emergency stockpile , the executive in charge of the Department of Veterans Affairs claimed Saturday .
Health care workers at VA hospitals have for weeks warned of severely inadequate stocks of personal protective equipment .
And in an interview with The Washington Post , the VA ’ s Executive in Charge Richard Stone pointed the finger at FEMA .
The agency , Stone told the Post , had directed vendors with VA orders to instead send equipment to FEMA for the federal stockpile of @ @ @ @ @ @ @ million masks incoming that disappeared , ” Stone told the Post .
Some VA hospitals , Stone acknowledged , are now on “ austerity levels.
” “ The supply system was responding to FEMA , ” Stone added .
“ I couldn ’ t tell you when my next delivery was coming in.
” FEMA wouldn ’ t confirm the allegation to the Post .
In a statement to TPM , FEMA spokesperson Janet Montesi did not directly address Stone ’ s allegation , but said that “ to date FEMA has coordinated @ @ @ @ @ @ @ types of respirator masks , 1 million facial/surgical masks , 1.5 million gloves and 14,000 face shields to VA facilities across the country.
” FEMA did tell the Post that following a request from VA Secretary Robert Wilkie , FEMA sent the VA 500,000 masks this week .
But Stone told the Post that the VA system is using about 200,000 masks a day .
FEMA has redistributed supplies relevant to the COVID-19 pandemic pursuant to the Korean War-era Defense Production Act , which allows the federal government to dictate private supply chains @ @ @ @ @ @ @ first DPA-related case during the COVID-19 pandemic against a Long Island man accused of price-gouging and hoarding supplies .
Still , some shipments face scrutiny from the feds but are ultimately not seized .
This post has been updated .
Correction : This post erroneously referred to Dr. Richard Stone as the executive in charge of FEMA .
He is the executive in charge of the VA .

The Federal Emergency Management Agency diverted masks from veterans hospitals and into the government’s emergency stockpile, the executive in charge of the Department of Veterans Affairs claimed Saturday.
Health care workers at VA hospitals have for weeks warned of severely inadequate stocks of personal protective equipment. And in an interview with The Washington Post, the VA’s Executive in Charge Richard Stone pointed the finger at FEMA.
The agency, Stone told the Post, had directed vendors with VA orders to instead send equipment to FEMA for the federal stockpile of such supplies.
“I had 5 million masks incoming that disappeared,” Stone told the Post. Some VA hospitals, Stone acknowledged, are now on “austerity levels.”
“The supply system was responding to FEMA,” Stone added. “I couldn’t tell you when my next delivery was coming in.”
In a statement to TPM, FEMA spokesperson Janet Montesi said “FEMA does not, has not and will not divert orders of PPE from our federal, state and local partners, nor do we have the legal authority to do so.”
“In support of VA and our nation’s veterans, to date FEMA has coordinated shipments of more than 4.3 million various types of respirator masks, 1 million facial/surgical masks, 1.5 million gloves and 14,000 face shields to VA facilities across the country,” Montesi said.
FEMA did tell the Post that following a request from VA Secretary Robert Wilkie, FEMA sent the VA 500,000 masks this week. But Stone told the Post that the VA system is using about 200,000 masks a day.
FEMA has redistributed supplies relevant to the COVID-19 pandemic pursuant to the Korean War-era Defense Production Act, which allows the federal government to dictate private supply chains.
Federal prosecutors on Friday brought their first DPA-related case during the COVID-19 pandemic against a Long Island man accused of price-gouging and hoarding supplies. Still, some shipments face scrutiny from the feds but are ultimately not seized.
This post has been updated.
Correction: This post erroneously referred to Dr. Richard Stone as the executive in charge of FEMA. He is the executive in charge of the VA.


talkingpointsmemo--2020-04-25--World Health Org Warns Against ‘Immunity Passports’: ‘No Evidence’ People Can’t Be Reinfected

The World Health Organization on Friday warned against assumptions that people who ’ ve recovered from COVID-19 will necessarily avoid being infected again .
In a scientific brief , the health organization acknowledged that some governments have suggested conferring “ immunity passports ” or “ risk-free certificates ” to former COVID-19 patients who are proven to have antibodies for the novel coronavirus in their blood .
However , WHO noted , “ There is currently no evidence that people who have recovered from COVID-19 and have antibodies are protected from a second infection.
” “ As of 24 April 2020 @ @ @ @ @ @ @ presence of antibodies to SARS-CoV-2 confers immunity to subsequent infection by this virus in humans , ” the brief added .
In addition , per WHO , laboratory tests to detect COVID-19 antibodies “ need further validation to determine their accuracy and reliability.
” Antibody tests to determine the presence of past coronavirus infections have become more widespread in recent weeks .
New York Gov .
Andrew Cuomo ( D ) on Thursday the preliminary results of an antibody survey that found that 21.2 % of New York City residents , and 13.9 @ @ @ @ @ @ @ tested positive for COVID-19 antibodies .
The survey counted 3,000 people tested outside grocery stores and other big box stores around the state .
“ At this point in the pandemic , there is not enough evidence about the effectiveness of antibody-mediated immunity to guarantee the accuracy of an ‘ immunity passport ’ or ‘ risk-free certificate , ' ” WHO ’ s brief concluded .
“ People who assume that they are immune to a second infection because they have received a positive test result may ignore public health advice .
The @ @ @ @ @ @ @ the risks of continued transmission .
As new evidence becomes available , WHO will update this scientific brief .
”

The World Health Organization on Friday warned against assumptions that people who’ve recovered from COVID-19 will necessarily avoid being infected again.
In a scientific brief, the health organization acknowledged that some governments have suggested conferring “immunity passports” or “risk-free certificates” to former COVID-19 patients who are proven to have antibodies for the novel coronavirus in their blood.
However, WHO noted, “There is currently no evidence that people who have recovered from COVID-19 and have antibodies are protected from a second infection.”
“As of 24 April 2020, no study has evaluated whether the presence of antibodies to SARS-CoV-2 confers immunity to subsequent infection by this virus in humans,” the brief added.
In addition, per WHO, laboratory tests to detect COVID-19 antibodies “need further validation to determine their accuracy and reliability.”
Antibody tests to determine the presence of past coronavirus infections have become more widespread in recent weeks.
New York Gov. Andrew Cuomo (D) on Thursday the preliminary results of an antibody survey that found that 21.2% of New York City residents, and 13.9% of New Yorkers statewide, had tested positive for COVID-19 antibodies. The survey counted 3,000 people tested outside grocery stores and other big box stores around the state.
“At this point in the pandemic, there is not enough evidence about the effectiveness of antibody-mediated immunity to guarantee the accuracy of an ‘immunity passport’ or ‘risk-free certificate,'” WHO’s brief concluded.
“People who assume that they are immune to a second infection because they have received a positive test result may ignore public health advice. The use of such certificates may therefore increase the risks of continued transmission. As new evidence becomes available, WHO will update this scientific brief.”


talkingpointsmemo--2020-04-25--Many States Fall Short Of Mandate To Track Virus Exposure

ATLANTA ( AP ) — As more states push to reopen their economies , many are falling short on one of the federal government ’ s essential criteria for doing so — having an efficient system to track people who have been physically near a person infected with the coronavius .
An Associated Press review found a patchwork of systems around the country for so-called contact tracing , with many states unable to keep up with caseloads and scrambling to hire and train enough people to handle the task for the months ahead .
The effort is far less than @ @ @ @ @ @ @ to guard against a resurgence of the virus .
The result is a wide array of strategies and little national coordination .
With few exceptions , most states reviewed by AP are going it alone .
Many other countries dealing with the pandemic are taking a national approach to testing .
As late as Friday , the website for the Centers for Disease Control and Prevention said detailed guidance on contact tracing for states was “ forthcoming.
” “ We ’ ll not ever control the whole country unless we have the same @ @ @ @ @ @ @ , a former CDC official .
“ Right now , that ’ s not what we ’ re doing.
” Contact tracing is a pillar of infection control and typically requires in-depth interviews with those who may have been exposed .
The number of public health employees needed for the work throughout the U.S. remains up for debate , but some estimates are as high as 300,000 people .
Louisiana , which has been hit hard by the virus , had only about 70 people working on tracing contacts this week .
By @ @ @ @ @ @ @ than a fifth of Louisiana ’ s population and no serious outbreaks , has 250 case investigators and will soon bring on an additional 172 staffers .
With more than 37,000 confirmed coronavirus cases , Pennsylvania is still working to determine how many people it will need in the field .
In Texas , coordination will be left to individual counties .
Health experts worry that a scattershot approach will only prolong the crisis , and they urge a more coordinated strategy .
In South Korea , for example , the national health @ @ @ @ @ @ @ sharing data on the movement of confirmed cases with local health departments .
The country has seen its case count plummet and remain low .
There is little consensus in the states on basic questions such as how extensive the tracing should be and whether cellular data should be used to assist in identifying people who may have been exposed at a public location .
Some states have taken decisive action .
Utah has 250 people at the state health department assisting local agencies in tracing contacts , and it can add 500 @ @ @ @ @ @ @ to spend $ 44 million on an aggressive contact-tracing plan and has already begun hiring and training the 1,000 people it expects to need .
Other states are slower to create robust tracing systems .
California , with nearly 40 million people and more than 37,000 confirmed cases , has limited tracing ability .
It recently announced plans to establish a “ contact-tracing workforce ” and train 10,000 people .
In Los Angeles , the nation ’ s second most populous city , those found to be positive at drive-thru testing centers are @ @ @ @ @ @ @ contact-tracing website .
Pennsylvania initially conducted tracing until the state began seeing community spread of the virus , and its ability to follow contacts was overwhelmed .
Now it ’ s trying again .
State officials estimate that it will take six hours to conduct basic tracing if an individual reported just 10 contacts .
Washington state , which experienced the first major outbreak in the U.S. , was also overwhelmed .
It now has about 700 people focused on tracing contacts , with plans to expand the workforce to 1,500 by the @ @ @ @ @ @ @ challenge for states is the ability to conduct widespread virus testing , which has been hampered in part by the difficulty in obtaining testing supplies .
Washington Gov .
Jay Inslee has said that for the state ’ s contact-tracing plan to work , daily testing needs to increase from about 4,000 tests to 20,000 or 30,000 tests .
The CDC said Friday that it is working with state and local jurisdictions to identify needs for “ surge support staff ” to assist with contact tracing and other infection-control measures .
Currently , @ @ @ @ @ @ @ staff members who are embedded with state health departments and other agencies .
After a $ 1 billion congressional appropriation this week , the CDC plans to prepare teams of experts to help states coordinate contract-tracing efforts .
The CDC Foundation has launched a “ COVID-19 Corps ” hiring campaign to bring in dozens of workers .
Having the ability to trace contacts was identified as part of “ core state preparedness responsibilities ” outlined in the White House ’ s guidelines for reopening .
Some states , such as Georgia and Tennessee @ @ @ @ @ @ @ even as they try to build up their contact-tracing ability .
Georgia Public Health Commissioner Kathleen Toomey said the state plans to retrain some employees for contact tracing and use a new mobile app to track infections .
It will ask infected people to voluntarily share their cellphone data so the state can find other contacts .
“ That sounds like a great plan , but by their own words it ’ s being finalized and customized .
It hasn ’ t been tested , ” said Dr. Harry J. Heiman , a @ @ @ @ @ @ @ University .
“ The idea that we ’ re going to start opening the doors before these things are in place , I think is irresponsible.
” Associated Press writers Russ Bynum in Savannah , Georgia , and Marc Levy in Harrisburg , Pennsylvania , contributed to this report .

ATLANTA (AP) — As more states push to reopen their economies, many are falling short on one of the federal government’s essential criteria for doing so — having an efficient system to track people who have been physically near a person infected with the coronavius.
An Associated Press review found a patchwork of systems around the country for so-called contact tracing, with many states unable to keep up with caseloads and scrambling to hire and train enough people to handle the task for the months ahead. The effort is far less than what public health experts say is needed to guard against a resurgence of the virus.
The result is a wide array of strategies and little national coordination. With few exceptions, most states reviewed by AP are going it alone. Many other countries dealing with the pandemic are taking a national approach to testing.
As late as Friday, the website for the Centers for Disease Control and Prevention said detailed guidance on contact tracing for states was “forthcoming.”
“We’ll not ever control the whole country unless we have the same strategy,” said Dr. Cyrus Shahpar, a former CDC official. “Right now, that’s not what we’re doing.”
Contact tracing is a pillar of infection control and typically requires in-depth interviews with those who may have been exposed. The number of public health employees needed for the work throughout the U.S. remains up for debate, but some estimates are as high as 300,000 people.
Louisiana, which has been hit hard by the virus, had only about 70 people working on tracing contacts this week. By comparison, North Dakota, with less than a fifth of Louisiana’s population and no serious outbreaks, has 250 case investigators and will soon bring on an additional 172 staffers.
With more than 37,000 confirmed coronavirus cases, Pennsylvania is still working to determine how many people it will need in the field. In Texas, coordination will be left to individual counties.
Health experts worry that a scattershot approach will only prolong the crisis, and they urge a more coordinated strategy. In South Korea, for example, the national health agency oversees the effort, gathering and sharing data on the movement of confirmed cases with local health departments. The country has seen its case count plummet and remain low.
There is little consensus in the states on basic questions such as how extensive the tracing should be and whether cellular data should be used to assist in identifying people who may have been exposed at a public location.
Some states have taken decisive action. Utah has 250 people at the state health department assisting local agencies in tracing contacts, and it can add 500 more staffers if needed. Massachusetts expects to spend $44 million on an aggressive contact-tracing plan and has already begun hiring and training the 1,000 people it expects to need.
Other states are slower to create robust tracing systems.
California, with nearly 40 million people and more than 37,000 confirmed cases, has limited tracing ability. It recently announced plans to establish a “contact-tracing workforce” and train 10,000 people. In Los Angeles, the nation’s second most populous city, those found to be positive at drive-thru testing centers are being asked to sign up for a contact-tracing website.
Pennsylvania initially conducted tracing until the state began seeing community spread of the virus, and its ability to follow contacts was overwhelmed. Now it’s trying again. State officials estimate that it will take six hours to conduct basic tracing if an individual reported just 10 contacts.
Washington state, which experienced the first major outbreak in the U.S., was also overwhelmed. It now has about 700 people focused on tracing contacts, with plans to expand the workforce to 1,500 by the second week of May.
One major challenge for states is the ability to conduct widespread virus testing, which has been hampered in part by the difficulty in obtaining testing supplies. Washington Gov. Jay Inslee has said that for the state’s contact-tracing plan to work, daily testing needs to increase from about 4,000 tests to 20,000 or 30,000 tests.
The CDC said Friday that it is working with state and local jurisdictions to identify needs for “surge support staff” to assist with contact tracing and other infection-control measures. Currently, states seeking help must rely on CDC staff members who are embedded with state health departments and other agencies.
After a $1 billion congressional appropriation this week, the CDC plans to prepare teams of experts to help states coordinate contract-tracing efforts. The CDC Foundation has launched a “COVID-19 Corps” hiring campaign to bring in dozens of workers.
Having the ability to trace contacts was identified as part of “core state preparedness responsibilities” outlined in the White House’s guidelines for reopening. Some states, such as Georgia and Tennessee, are easing social and business restrictions even as they try to build up their contact-tracing ability.
Georgia Public Health Commissioner Kathleen Toomey said the state plans to retrain some employees for contact tracing and use a new mobile app to track infections. It will ask infected people to voluntarily share their cellphone data so the state can find other contacts.
“That sounds like a great plan, but by their own words it’s being finalized and customized. It hasn’t been tested,” said Dr. Harry J. Heiman, a professor of public health at Georgia State University. “The idea that we’re going to start opening the doors before these things are in place, I think is irresponsible.”
___
Dearen reported from Gainesville, Florida.
___
Associated Press writers Russ Bynum in Savannah, Georgia, and Marc Levy in Harrisburg, Pennsylvania, contributed to this report.


talkingpointsmemo--2020-04-25--Britain Joins Four Other Countries With At Least 20,000 Dead From COVID-19

LONDON — Britain ’ s confirmed tally of hospital deaths among people with the coronavirus has topped 20,000 , making @ @ @ @ @ reach the grim milestone .
The government says 20,319 people with COVID-19 have died in @ @ @ @ @ of 813 from the day before .
The figure doesn ’ t include deaths in @ @ @ @ @ likely to number in the thousands .
Britain is the fourth European country after Italy @ @ @ @ @ reach 20,000 deaths .
The United States has recorded more than 50,000 coronavirus fatalities .
@ @ @ @ @ outbreak has peaked , with the number of people hospitalized with the coronavirus declining .
@ @ @ @ @ is too soon to ease a nationwide lockdown imposed on March 23 and extended to @ @ @ @ @ some businesses are planning to reopen after implementing social distancing measures .
Several automakers say @ @ @ @ @ May .

LONDON — Britain’s confirmed tally of hospital deaths among people with the coronavirus has topped 20,000, making it the fifth country to reach the grim milestone.
The government says 20,319 people with COVID-19 have died in British hospitals, an increase of 813 from the day before. The figure doesn’t include deaths in nursing homes, which are likely to number in the thousands.
Britain is the fourth European country after Italy, Spain and France to reach 20,000 deaths. The United States has recorded more than 50,000 coronavirus fatalities.
There are signs the U.K. outbreak has peaked, with the number of people hospitalized with the coronavirus declining. But the government says it is too soon to ease a nationwide lockdown imposed on March 23 and extended to May 7.
Still, some businesses are planning to reopen after implementing social distancing measures. Several automakers say they will restart production in May.


talkingpointsmemo--2020-04-25--White House Adviser Got ‘Special Deal’ Haircut To Look Good On Fox News

A member of the White House ’ s Coronavirus Task Force bragged Friday night about violating the “ stay-at-home ” rules that his public health colleagues have said are crucial to slowing the spread of the novel coronavirus .
Larry Kudlow , the White House economic adviser , let the story slip during an interview with Fox News ’ Laura Ingraham .
“ I ’ m also going to confess , I had a hair trim yesterday , ” Kudlow told Ingraham .
The Fox News host had just finished an interview with a barber in Georgia , where several @ @ @ @ @ @ @ order from the governor .
( Even the President , who initially supported the move to reopen some businesses in Georgia , reversed himself recently , saying Wednesday that he “ totally ” disagreed with the move . )
“ It was kind of a special deal , ” Kudlow told Ingraham .
“ Friends of ours — you know this person , but I ’ m not gon na mention any names .
She got her hairdresser to come in and open up her barbershop , and the guy gave me a @ @ @ @ @ @ @ ’ t have much to work with , ” the White House adviser acknowledged .
“ But it looks much better because I wanted it to look good on the Laura Ingraham Show .
That was the key point and here I am .
I had no temperature this morning coming into the White House , I tested negative last week , I feel fine.
” “ You ’ re special , you got a haircut , ” Ingraham snarked at the White House adviser , who mouthed “ I ’ m sorry @ @ @ @ @ @ @ moved on with the interview .
Kudlow isn ’ t alone in skirting COVID-19 orders .
Chicago Mayor Lori Lightfoot was criticized earlier this month after pictures of her getting a haircut despite Illinois ’ stay-at-home order surfaced publicly .
Early on in the COVID-19 crisis , Kudlow repeatedly downplayed the severity of the disease in his capacity as a White House official , advertising stock opportunities amid the economic downturn that accompanied the pandemic .
He was also a source of misinformation about the disease : “ We have contained this , @ @ @ @ @ @ @ “ I won ’ t say airtight , but pretty close to airtight.
” Around the same time , the White House adviser falsely said that the World Health Organization director-general had urged the public not to overreact to the disease .
In reality , WHO Director-General Tedros Adhanom said the coronavirus disease “ absolutely ” had the potential to become a global pandemic .

A member of the White House’s Coronavirus Task Force bragged Friday night about violating the “stay-at-home” rules that his public health colleagues have said are crucial to slowing the spread of the novel coronavirus.
Larry Kudlow, the White House economic adviser, let the story slip during an interview with Fox News’ Laura Ingraham.
“I’m also going to confess, I had a hair trim yesterday,” Kudlow told Ingraham.
The Fox News host had just finished an interview with a barber in Georgia, where several types of businesses recently re-opened per an order from the governor. (Even the President, who initially supported the move to reopen some businesses in Georgia, reversed himself recently, saying Wednesday that he “totally” disagreed with the move.)
“It was kind of a special deal,” Kudlow told Ingraham. “Friends of ours — you know this person, but I’m not gonna mention any names. She got her hairdresser to come in and open up her barbershop, and the guy gave me a pretty good trim.”
“I don’t have much to work with,” the White House adviser acknowledged. “But it looks much better because I wanted it to look good on the Laura Ingraham Show. That was the key point and here I am. I had no temperature this morning coming into the White House, I tested negative last week, I feel fine.”
“You’re special, you got a haircut,” Ingraham snarked at the White House adviser, who mouthed “I’m sorry,” before the Fox News host moved on with the interview.
"It was kind of a special deal": White House Coronavirus Task Force member Larry Kudlow says he got a haircut to look good on Fox News. pic.twitter.com/WKx0BgoR4d — Matt Shuham (@mattshuham) April 25, 2020
Kudlow isn’t alone in skirting COVID-19 orders. Chicago Mayor Lori Lightfoot was criticized earlier this month after pictures of her getting a haircut despite Illinois’ stay-at-home order surfaced publicly.
Early on in the COVID-19 crisis, Kudlow repeatedly downplayed the severity of the disease in his capacity as a White House official, advertising stock opportunities amid the economic downturn that accompanied the pandemic.
He was also a source of misinformation about the disease: “We have contained this,” he said in late February. “I won’t say airtight, but pretty close to airtight.”
Around the same time, the White House adviser falsely said that the World Health Organization director-general had urged the public not to overreact to the disease. In reality, WHO Director-General Tedros Adhanom said the coronavirus disease “absolutely” had the potential to become a global pandemic.
H/t Yahoo News


talkingpointsmemo--2020-04-26--Louisiana Pastor Defies House Arrest To Hold Service With 100+ Congregants

CENTRAL , La .
— A Louisiana pastor is holding services in his church , defying house arrest orders that followed an assault charge related to his decision to hold mass gatherings in defiance of public health orders during the coronavirus pandemic .
A livestream from Life Tabernacle Church on Sunday showed Tony Spell walking among more than 100 congregants , often repeating the phrase , “ I ’ ve just got to get to Jesus .
… Come on America , let ’ s get back to Jesus.
” Nearly all parishioners were not wearing face masks , and @ @ @ @ @ @ @ The police department in Central , a suburb Baton Rouge , says on their Facebook page that Spell turned himself into the department last week on charges of aggravated assault and improper backing .
Trey Bennett has kept up a one-man demonstration in front of the church since Easter Sunday , when he noticed hundreds of parishioners still attending services in defiance of the state ’ s stay-at-home mandate , which bans gatherings of more than 10 people .
Houses of worship across Louisiana have turned to online services instead .
Last Sunday @ @ @ @ @ @ @ reverse in the direction of the sign-holding protester .
Spell already faces misdemeanor charges for holding in-person church services despite the ban on gatherings .
Dozens of Spell ’ s parishioners met him at the East Baton Rouge Parish prison , dressed in their Sunday best , arrived in church buses to show support .
In a livestream from the church , images including photos from Spell ’ s arrest , as well as information for a GoFundMe account to help with his legal costs , played over music being performed at the @ @

CENTRAL, La. — A Louisiana pastor is holding services in his church, defying house arrest orders that followed an assault charge related to his decision to hold mass gatherings in defiance of public health orders during the coronavirus pandemic.
A livestream from Life Tabernacle Church on Sunday showed Tony Spell walking among more than 100 congregants, often repeating the phrase, “I’ve just got to get to Jesus. … Come on America, let’s get back to Jesus.” Nearly all parishioners were not wearing face masks, and social distancing was not being practiced.
The police department in Central, a suburb Baton Rouge, says on their Facebook page that Spell turned himself into the department last week on charges of aggravated assault and improper backing.
Trey Bennett has kept up a one-man demonstration in front of the church since Easter Sunday, when he noticed hundreds of parishioners still attending services in defiance of the state’s stay-at-home mandate, which bans gatherings of more than 10 people. Houses of worship across Louisiana have turned to online services instead.
Last Sunday, Spell drove a church bus in reverse in the direction of the sign-holding protester. Spell already faces misdemeanor charges for holding in-person church services despite the ban on gatherings.
Dozens of Spell’s parishioners met him at the East Baton Rouge Parish prison, dressed in their Sunday best, arrived in church buses to show support. In a livestream from the church, images including photos from Spell’s arrest, as well as information for a GoFundMe account to help with his legal costs, played over music being performed at the church.


talkingpointsmemo--2020-04-26--Coming Soon: A ‘Tsunami’ Of Business Bankruptcies

NEW YORK ( AP ) — The billions of dollars in coronavirus relief targeted at small businesses may not prevent many of them from ending up in bankruptcy court .
Business filings under Chapter 11 of the federal bankruptcy law rose sharply in March , and attorneys who work with struggling companies are seeing signs that more owners are contemplating the possibility of bankruptcy .
Companies forced to close or curtail business due to government attempts to stop the virus ’ s spread have mounting debts and uncertain prospects for returning to normal operations .
Even those owners receiving emergency @ @ @ @ @ @ @ that help will be enough .
The most vulnerable companies include the thousands of restaurants and retailers that shut down , many of them more than a month ago .
Some restaurants have managed to bring in a bit of revenue by serving meals for takeout and delivery , but even they are struggling financially .
Small and independent retailers , including those with online stores .
are similarly at risk ; clothing retailers have the added problem of winter inventory that they are unlikely to sell with spring here and summer approaching @ @ @ @ @ @ @ slammed by the collapse in energy prices also are strapped , as are other companies that were already burdened with high debt levels before the virus struck .
Jennifer Bennett , who closed one of her San Francisco restaurants on Wednesday , was still waiting for the financial aid she sought from the federal , state and city governments .
Even with the money , she doesn ’ t know if the revenue will cover the bills when she ’ s finally able to reopen Zazie — especially if she ’ s required @ @ @ @ @ @ @ social distancing .
“ Our occupancy is going to be cut 60 % to 65 % , ” Bennett says .
“ I fear bankruptcy is a possibility.
” Other small companies have similar anxieties , says Paul Singerman , a bankruptcy attorney with Berger Singerman in Miami .
“ There is no reliable visibility into when business operations will be able to resume the pre-COVID normal , ” Singerman says .
Even larger companies are in trouble , including already struggling retailers who had to shut their stores .
The jeans company @ @ @ @ @ @ @ this month , saying extended closures of its stores in the pandemic have hurt its business .
Recent reports say department store chains Neiman Marcus and J.C. Penney , which has struggled for years with slumping sales , could soon file for bankruptcy protection .
The number of Chapter 11 filings rose 18 percent in March from a year earlier , a dramatic swing from the 20 percent decrease in February , according to the American Bankruptcy Institute , a trade organization for attorneys and other professionals involved in bankruptcy proceedings .
The @ @ @ @ @ @ @ by company size , but given that the vast majority of companies are small to mid-size , it does give an indication that smaller companies are struggling .
The federal government has already approved or given out more than 2 million loans and grants to small businesses totaling nearly $ 360 billion ; another $ 310 billion is on the way to one of the programs .
Still , the money may be at best a stopgap for companies with little to no revenue coming in .
And the new funds are expected @ @ @ @ @ @ @ owners won ’ t get loans .
There ’ s no way to predict how many companies will file for bankruptcy .
There were over 160,000 bankruptcy filings from 2008 to 2010 , during the Great Recession and its aftermath , according to statistics compiled by the federal court system .
The numbers don ’ t break out filings by company size .
The majority were for liquidations .
although some companies restructured their debt and continued operating under Chapter 11 .
Many companies , however , just shut their doors , and @ @ @ @ @ @ @ case again , Singerman says .
According to some estimates , 170,000 companies failed during the recession .
But the Small Business Reorganization Act , which took effect in February , may encourage more companies to seek Chapter 11 .
The law is aimed at allowing owners to retain their ownership rather than lose their companies to their creditors ; that is generally what happens in Chapter 11 .
The law also streamlines the reorganization process so a company is not wiped out by attorneys ’ fees , says Edward Janger , a @ @ @ @ @ @ @ York whose expertise includes bankruptcy law .
Another change under the law is that a bankruptcy judge can approve the reorganization over creditors ’ objections , Janger says .
Business owners will try to avoid bankruptcy by seeking leniency from landlords , lenders and vendors , bankruptcy attorney David Wander says .
But with their companies ’ financial troubles beyond their control because of the virus outbreak , many will file for Chapter 11 because the stigma that bankruptcy has long held will be gone , says Wander , a partner at Davidoff @ @ @ @ @ @ @ “ The tsunami is going to happen in the coming months and it ’ s going to be ongoing , ” Wander says .

NEW YORK (AP) — The billions of dollars in coronavirus relief targeted at small businesses may not prevent many of them from ending up in bankruptcy court.
Business filings under Chapter 11 of the federal bankruptcy law rose sharply in March, and attorneys who work with struggling companies are seeing signs that more owners are contemplating the possibility of bankruptcy.
Companies forced to close or curtail business due to government attempts to stop the virus’s spread have mounting debts and uncertain prospects for returning to normal operations. Even those owners receiving emergency loans and grants aren’t sure that help will be enough.
The most vulnerable companies include the thousands of restaurants and retailers that shut down, many of them more than a month ago. Some restaurants have managed to bring in a bit of revenue by serving meals for takeout and delivery, but even they are struggling financially. Small and independent retailers, including those with online stores. are similarly at risk; clothing retailers have the added problem of winter inventory that they are unlikely to sell with spring here and summer approaching.
Independent oil companies whose revenue was slammed by the collapse in energy prices also are strapped, as are other companies that were already burdened with high debt levels before the virus struck.
Jennifer Bennett, who closed one of her San Francisco restaurants on Wednesday, was still waiting for the financial aid she sought from the federal, state and city governments. Even with the money, she doesn’t know if the revenue will cover the bills when she’s finally able to reopen Zazie — especially if she’s required to space tables six feet apart for social distancing.
“Our occupancy is going to be cut 60% to 65%,” Bennett says. “I fear bankruptcy is a possibility.”
Other small companies have similar anxieties, says Paul Singerman, a bankruptcy attorney with Berger Singerman in Miami.
“There is no reliable visibility into when business operations will be able to resume the pre-COVID normal,” Singerman says.
Even larger companies are in trouble, including already struggling retailers who had to shut their stores.
The jeans company True Religion filed for Chapter 11 earlier this month, saying extended closures of its stores in the pandemic have hurt its business. Recent reports say department store chains Neiman Marcus and J.C. Penney, which has struggled for years with slumping sales, could soon file for bankruptcy protection.
The number of Chapter 11 filings rose 18 percent in March from a year earlier, a dramatic swing from the 20 percent decrease in February, according to the American Bankruptcy Institute, a trade organization for attorneys and other professionals involved in bankruptcy proceedings. The numbers don’t break out filings by company size, but given that the vast majority of companies are small to mid-size, it does give an indication that smaller companies are struggling.
The federal government has already approved or given out more than 2 million loans and grants to small businesses totaling nearly $360 billion; another $310 billion is on the way to one of the programs. Still, the money may be at best a stopgap for companies with little to no revenue coming in. And the new funds are expected to go so quickly that thousands of owners won’t get loans.
There’s no way to predict how many companies will file for bankruptcy. There were over 160,000 bankruptcy filings from 2008 to 2010, during the Great Recession and its aftermath, according to statistics compiled by the federal court system. The numbers don’t break out filings by company size. The majority were for liquidations. although some companies restructured their debt and continued operating under Chapter 11.
Many companies, however, just shut their doors, and that’s likely to be the case again, Singerman says. According to some estimates, 170,000 companies failed during the recession.
But the Small Business Reorganization Act, which took effect in February, may encourage more companies to seek Chapter 11. The law is aimed at allowing owners to retain their ownership rather than lose their companies to their creditors; that is generally what happens in Chapter 11. The law also streamlines the reorganization process so a company is not wiped out by attorneys’ fees, says Edward Janger, a professor at Brooklyn Law School in New York whose expertise includes bankruptcy law.
Another change under the law is that a bankruptcy judge can approve the reorganization over creditors’ objections, Janger says.
Business owners will try to avoid bankruptcy by seeking leniency from landlords, lenders and vendors, bankruptcy attorney David Wander says. But with their companies’ financial troubles beyond their control because of the virus outbreak, many will file for Chapter 11 because the stigma that bankruptcy has long held will be gone, says Wander, a partner at Davidoff Hutcher & Citron in New York.
“The tsunami is going to happen in the coming months and it’s going to be ongoing,” Wander says.