Policy Issues
CORONAVIRUS, PUBLIC POLICIES AND THE ECONOMY
March 6, 2021 - Senate Democrats passed an amended, $1.9 trillion pandemic relief package, The American Rescue Plan – that has now been sent back to the House for final passage before current unemployment benefits expire March 14.
See The Roundtable's document -- "Summary and Analysis of Key Economic Provisions in The American Rescue Plan."
February 27, 2021 - The American Rescue Plan Act of 2021 (H.R. 1319) was passed by the House of Representatives is a $195 trillion COVID-19 relief package that provides $638 billion in tax cuts, offset by $45 billion in tax increases, and represents over 2% of GDP in 2021.
Last December, Congress passed a multi-trillion “omnibus” bill that provides approximately $900 billion in coronavirus relief, as well as $1.4 trillion to fund government operations through Sept. 30. (Text of the 5,550-plus page bill)
The legislation is the culmination of months of bipartisan negotiations to further stimulate the COVID-era economy. It will also keep the federal government operational for the rest of the current fiscal year.
Matters of particular interest to the real estate sector are summarized in "Key Provisions Impacting Real Estate in the Bipartisan COVID-19 Omnibus Legislation -- The Consolidated Appropriations Act, 2021."
Summaries provided by various Congressional offices regarding the $900 billion COVID-19 relief package include:
- Topline summary
- Detailed summary
- Paycheck Protection Program (PPP) and Small Business Summary (Part 1 and Part 2)
- Residential Rental Assistance and Federal Eviction Moratorium summary
- Tax Provisions in the 2020 Year-End Legislation
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The Roundtable COVID-19 Resource Center
COVID-19 - Policy Comment Letters
COVID-19 - 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).
Quick Links
RER COVID-19 Crisis Alert Updates
December 22, 2020 - Key Provisions Impacting Real Estate in the Bipartisan COVID-19 Omnibus Legislation
CARES Act - RER Analysis
SBA Emergency Loan Program Resources
Payroll Protection Program
Other Resources : The Federal Reserve / U.S. Department of Treasury
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Roundtable Analysis
Roundtable Analysis
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Coronavirus Aid Relief and Economic Security (CARES) Act
Status of CARES Act passage [as of April 3, 2020]: 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 "Paycheck Protection Program"
Independent contractors, sole proprietors, and businesses with 500 employees or less
Federal Reserve 13(3) Lending Programs and Facilities
Businesses with any number of employees over 500
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The Real Estate Roundtable's 8-Point Plan to Reform the PPP
The Real Estate Roundtable's 8-Point Plan to Reform the PPP
The Real Estate Roundtable on April 8 submitted an 8-Point Plan to clarify and improve the Payroll Protection Program (PPP) to congressional leadership, Treasury Secretary Steven Mnuchin and Small Business Administrator (SBA) Jovita Carranza.
Download: 8-Point Plan to Reform the PPP
Payroll Protection Policy Comment Letters
- Business Coalition Supports Paycheck Protection Flexibility Act to Strike “75/25 Rule” and Extend Loan Forgiveness Period (May 21, 2020)
- Real Estate Organizations Seek PPP Clarity (April 16, 2020)
- The Real Estate Roundtable's 8-Point Plan to Reform the PPP ( Congressional Leadership) ( April 8, 2020)
- The Real Estate Roundtable's 8-Point Plan to Reform the PPP (U.S. Treasury & SBA) (April 8, 2020)
- Roundtable Urges Treasury, SBA to Clarify Rules for Small Business Payroll Protection Program (April 2, 2020)
- Roundtable Urges Congress to Expand Scope of CARES Act for Emergency Small Business Loans (March 24, 2020)
- Roundtable, Business Coalition Support Emergency Loan Program for Small Businesses Affected by COVID-19 Crisis (March 19, 2020)
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Roundtable Testimony - Senate Banking, Housing and Urban Affairs
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. 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.
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.”
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.
RELATED CONTENT
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October 23, 2020
Main Street Lending Program’s Restrictive Terms Prevent Full Access by Impacted CRE Sectors
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October 9, 2020
Shifting Negotiations Aim for Uncertain Pandemic Relief Deal, Legislation Unlikely Before Election; Fed Chairman Warns Lack of Fiscal Support Risks ‘Tragic’ Consequences
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September 25, 2020
Powell and Mnuchin Urge More Congressional Pandemic Fiscal Relief; Fed Releases FAQs on Main Street Lending Program; Democrats Considering New COVID-19 Package
The Roundtable’s Homeland Security Task Force (HSTF) is co-chaired by Dan Kennedy (URW) and Charlie McGonigal (Brookfield). The HSTF includes senior security and risk management managers from a range of ownership, investment and management firms as well as staff from affiliated real estate trade organizations.
Other Resources
