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

Coalition Requests PPP Reforms — Including Elimination of “75-25 Rule”

View Letter

The Real Estate Roundtable along with 132 organizations wrote to Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Secretary Mnuchin, and Administrator Carranza requesting emergency legislative and administrative action to: 

(1) repeal the Paycheck Protection Program’s (PPP) 75%-25% rule

(2) extend the eight-week period for purposes of calculating loan forgiveness, and

(3) extend the June 30 safe harbor date for rehiring and restoration of pay. These steps would conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation.

These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational. Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses.

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