About 30% of Arkansans who signed up during a test period for unemployment insurance benefits for the self-employed must resubmit supporting documents because of a computer glitch, the state Department of Workforce Services confirmed Wednesday.
The unemployment insurance applications were filed correctly during the testing phase of the new system between May 1 and May 5, but supporting documents sent during that time didn't download correctly and cannot be fixed, the division confirmed.
Supporting documents include items such as electronic copies of invoices and IRS forms. The 5,673 applications are still active, but those seeking benefits must resubmit copies of the documents. Applications filed on or after May 6 aren't affected.
The division received 19,230 complete applications by Saturday from the self-employed under the federal Pandemic Unemployment Assistance program, state figures show. The total number of applications was more than 25,000, according to a Friday statement in the governor's daily pandemic briefings.
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"It's just inexcusable, but it's not necessarily a surprise," said Sen. Greg Leding, D-Fayetteville, a frequent critic of the state's assistance to the self-employed.
Congress extended unemployment insurance benefits to the self-employed on March 18 under the Coronavirus Aid, Relief, and Economic Security Act, part of the response to the ongoing covid-19 outbreak.
The addition of benefits for the self-employed required designing a new system for taking applications over the internet, the state division has said. The federal guidelines of what the program would require weren't available until early April, according to the division.
"The division didn't even sign a contract to develop this process until April 14," Leding said. "I've heard from so many who are frustrated because they are desperate for assistance. They've already been informed they won't see a check until the end of May and now this happened."
Gov. Asa Hutchinson addressed the self-employed benefit situation in his daily coronavirus update Wednesday. He said the division is working to make sure the document problem doesn't delay the mailing of checks beyond the May 31 goal date. Benefits paid will be retroactive, according to the division.
"I have asked them to communicate clearly with those that have applied so that they know the status of it," Hutchinson said. "That's important so everybody knows when to expect this, and I think they are improving that communication and continuing to build that system."
Hutchinson said state Secretary of Commerce Mike Preston would attend a future briefing to answer questions in greater detail.
Sunshine Broder, owner of the Shine Salon in Fayetteville, brought up the communication issue in an interview Wednesday before the governor's remarks. She is one of those who applied early, she said, and received an email about corrupted files. She resubmitted the supporting documents, but didn't receive notice on whether that submission succeeded.
This latest snag is far from the first with which she has had to deal, Broder said. For instance, her business was eligible for the Paycheck Protection Program, another pandemic assistance program.
"But I could never get a clear answer on whether I could apply for that and unemployment both," she said.
So, after determining the unemployment benefits would help her business more, she declined her opportunity for a no-interest, forgivable loan -- in March. Now she is still waiting to see any benefit from unemployment insurance.
The paycheck protection for which she had been eligible was the second round of such loans. She applied in the first round, but the money went quickly.
"If only I was Ruth Chris I'd be taken care of," Broder said, referring to the steakhouse chain that got a $20 million protection loan in the first round. The corporation gave back the loan after news accounts about the matter in April.
U.S. Rep. Steve Womack of Rogers, who represents the state's 3rd Congressional District, said business owners and local governing bodies throughout the district face vague requirements and a lack of prompt answers about paycheck protection loans, unemployment issues and a host of other matters.
"I was in a conference call yesterday where we complained to the Treasury Department about guidelines being far too vague," Womack said.
Metro on 05/14/2020