Policy Issues

CORONAVIRUS, PUBLIC POLICIES AND THE ECONOMY

Roundtable President & CEO Jeffrey DeBoer testified remotely before the Senate Banking, Housing and Urban Affairs Committee on “The Status of the Federal Reserve Emergency Lending Facilities” on Sept. 9, 2020. 

• Download DeBoer’s Written Statement for The Record of the hearing.
• The hearing focused on how the Federal Reserve’s Main Street Lending Program (MSLP) could be improved. The MSLP is a $600 billion loan facility established in March as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to assist small and mid-sized businesses weather the COVID-19 economic crisis.  
• The remote hearing is available to stream via Webex on the Senate Banking Committee’s website.   All witnesses testimony is also available on their webpage.

DeBoer’s written statement also provides additional non-MSLP policy recommendations to provide critical assistance for renter households, business tenants, and the U.S. workforce during the COVID economic crisis.

The Real Estate Roundtable COVID-19 Resource Center

Coronavirus - Policy Comment Letters

Coronavirus - Roundtable Weekly

While the world’s experts work around the clock to solve the health related issues related to the COVID-19 pandemic, The Real Estate Roundtable is actively working on a variety of policy responses focused on issues that will help:

• employers maintain payrolls,
  
  
• assist businesses access new or restructured debt,
  
  
• encourage banking and other regulators to exercise discretion in loan examinations,
  
  
• support new credit facilities from The Fed to assist the CMBS market, and
  
  
• work with federal tax authorities to ease transaction deadlines, lower tax penalties in debt modification and broaden the ability to use operating losses (among other measures).

Roundtable Analysis

• Coronavirus Aid, Relief, and Economic Secuirty (CARES Act) and Implications for U.S. Real Estate

• Roundtable's 8-Point Plan to Reform the PPP

Coronavirus Aid, Relief, and Economic Security  (CARES) Act

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:

Roundtable's Response

Roundtable President and CEO Jeffrey DeBoer stated, “Owners and managers of all types of buildings are taking actions to better understand the potential contagion and how to best help building occupants, visitors and employees prevent further spread of the coronavirus. This viral threat to lives, businesses and economies is a top concern for our industry and we stand ready to assist public health officials as they recommend.”

In the coming weeks, further policies from Congress and the Administration are expected to address longer-term stimulus of the U.S. economy through measures such as infrastructure investment, workforce development, increased lending for small businesses, and stabilizing the capital markets.  The Roundtable will continue to work with our colleague partner associations to unify the real estate industry’s message as policymakers develop and implement measures to mitigate the COVID-19 pandemic.