ECONOMIC INFORMATION & SUPPORT

WEBINAR RECORDING: U.S. ECONOMIC OUTLOOK

Learn from economist Dan North with Euler Hermes on a recent Hylant webinar as he shared his perspective and outlook for the U.S. economy.

As one of the leading U.S. economists, Dan North has appeared on CNBC, Fox Business News, ABC News Now, France 24, and Bloomberg Radio and Television. He has been quoted by USA Today, Barron’s, Bloomberg Business Week, The Washington Post, Paris Le Monde, The Wall Street Journal, and New York Times.

Euler Hermes, backed by Allianz and more than 125 years of expertise, helps your business prepare by predicting trade and credit risks and protecting your cash flow.

COVID-19 BUSINESS AND EMPLOYEE CONTINUITY AND RECOVERY FUND

Hylant is in support of the proposed COVID-19 Business and Employee Continuity and Recovery Fund (the “Recovery Fund”) that would create a streamlined and tailored federal fund to provide rapid liquidity to small businesses and commercial sectors impaired by COVID-19. The requested relief is targeted to help businesses retain and rehire employees, maintain worker benefits, and resume or continue economic activity. The fund includes strong anti-abuse provisions, including audits and a Special Inspector General oversight, and would be leveraged through private sector servicers.

We urge you to support the Recovery Fund and have prepared a sample letter you can use to share your backing with members of Congress. Not sure of your congressional district or who your member is? Refer to house.gov to search by zip code. You can also email your communication directly to your Senators on America’s Recovery Fund Coalition website: https://americasrecoveryfund.org/

Purpose

  • Protect lost wages for employees unable to work because of COVID-19 illness
  • Preserve jobs through payroll assistance to help businesses retain and rehire employees
  • Maintain economic activity by keeping businesses solvent and at least partly open
  • Support women-owned and minority-owned businesses impacted by COVID-19

Program Administration

  • Establish within Treasury an expedited and streamlined relief program run by a special federal administrator
  • Authorize the program to contract with third parties that agree to assist with application filing and review
  • Fund the program through advanced authorization of appropriations and the creation of an obligation of the federal government

ASSISTANCE AVAILABLE TO BUSINESSES

During difficult times, we are here to help our clients navigate uncharted waters with relevant and timely information, even if it’s not directly insurance related. To that end, we want to make sure you know about provisions passed by Congress the second half of March to assist business owners facing cash flow challenges from the coronavirus outbreak. For small businesses (those with 500 or fewer employees) that are coping with business challenges from the coronavirus, these include loans and refundable tax credits to provide substantial cash flow assistance.

Read more about small business loans and reimbursements available for paid leave here in our March 27, 2020 blog post.

INFORMATION ABOUT THE MAIN STREET LENDING PROGRAM AS AN EXPANSION OF THE CARES ACT RELIEF EFFORTS

Among the actions were the release of terms for new loans and the expansion of existing loans under the Main Street Lending Program. Encouraged in the $2 trillion relief package passed by Congress last month, the Program is designed to support small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies (i) employing up to 10,000 workers or (ii) with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year.
 
Eligible banks will be able to originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. The Main Street facilities will purchase up to $600 billion of loans.
 
Those looking to access these facilities should be aware of a number of important borrower eligibility criteria, features of the loans, and commitments and attestations borrowers will need to make.
 
The two-term sheets related to these programs can be found here: