FEDERAL RESERVE TAKES ACTIONS TO PROVIDE UP TO $2.7T IN LOANS
Visit the Economic Support page for more resources.
TRUMP SIGNS $2 TRILLION CARES ACT INTO LAW
On March 27, President Trump signed the CARES Act "Coronavirus Aid, Relief and Economic Security Act" following a unanimous vote by the Senate. The CARES act includes public health aid to address COVID-19, cash relief for citizens, broad lending for small business and relief for impacted industries.
Review this summary of the CARES Act from the legal team at Steptoe & Johnson here.
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:
EXECUTIVE ORDER FROM GOVERNOR CUOMO OF NEW YORK
We want you to be aware of a recent Executive Order issued by Governor Cuomo, that together with recent amendments to the insurance and banking regulations (the “regulations”) issued by the New York State Department of Financial Services (“Department”), extend grace periods and give you other rights under certain property/casualty insurance policies if you are an individual or small business and can demonstrate financial hardship as a result of the novel coronavirus (“COVID 19”) pandemic (“affected policyholder”). These grace periods and rights are currently in effect but are temporary, though they may be extended further. Please check the Department’s website for updates.
Read the full communication here.