Policy Issues

Status of CARES Act passage [as of April 3]:  The Senate passed the CARES Act on Wednesday, March 25, by a 96-0 vote.  The House passed the bill on Friday, March 27, and President Trump signed the bill into law that afternoon. On Thursday, April 2, the Small Business Administration released “final interim regulations” to implement the program.

The Coronavirus Aid, Relief and Economic Security (CARES) Act  is the $2 trillion rescue bill that intends to respond to public health and economic issues caused by COVID-19 outbreak. 

It has been called “the biggest economic stimulus in American history.”  The CARES Act is also called “Phase III,” because it follows other COVID-19 responses that became law on March 6, 2020 and March 18, 2020.

Under the CARES Act, hospitals and the medical workforce get $100 billion for products, medicine, and equipment to help address the capacity surge in patients.  As an effort to alleviate the economic fallout from the pandemic, the CARES Act massively expands unemployment support, and directs cash payments to individuals and families.  It also provides loans, grants and other financial assistance to state and local governments, and all types and sizes of U.S. businesses.

For the business community, a number of financial programs are available depending on how many workers are employed by a given business concern. See summaries of provisions for:

Small Business Emergency Loans Under the

Small Business Emergency Loans Under the "Paycheck Protection Program"

Independent contractors, sole proprietors, and businesses with 500 employees or less

Mid-Sized Lending Facility

Mid-Sized Lending Facility

Businesses with 501 to 10,000 employees

Federal Reserve 13(3) Lending Programs and Facilities

Businesses with any number of employees over 500

Policy Comment Letters
May 21, 2020

Business Coalition Supports Paycheck Protection Flexibility Act to Strike “75/25 Rule” and Extend Loan Forgiveness Period

View Letter

This week, The Real Estate Roundtable along with 27 industry organizations wrote to House Leadership, Speaker Pelosi and Leader McCarthy to express strong support for the recently introduced “Paycheck Protection Flexibility Act,” sponsored by Representatives Dean Phillips and Chip Roy. The legislation would provide enhancements to the Paycheck Protection Program (PPP) that serves as the lifeblood to thousands of small businesses, and we hope it is swiftly considered and passed.

The Paycheck Protection Flexibility Act would significantly improve the PPP by:

1) allowing loan forgiveness for expenses outside of the eight-week period

2) striking the restrictive 75%/25% rule on loan proceed use

3) expanding loan terms beyond two years

4) ensuring full access to payroll tax deferment for businesses that take PPP loans, and

5) extending the June 30, 2020 rehiring deadline to respond to the workforce effects of enhanced Unemployment Insurance.

Taken as a whole, these provisions would empower small businesses to have the autonomy to make their own decisions about how best to meet their obligations to stay in their physical location, retain and hire employees, protect their workers and consumers, and save their businesses.

Staff Contact
DD-Oct2019 - contact Duane J. Desiderio 
 Senior Vice President & Counsel
RM-Oct2019 - contact Ryan P. McCormick
 Senior Vice President & Counsel
CER - Oct2019 - contact Clifton (Chip) E. Rodgers, Jr. 
 Senior Vice President