ARDA Inside Look | Issue II
America’s Recovery Fund Coalition
ARDA, along with more than 100 trade associations and business organizations spanning 30 business sectors and representing 58 million employees – 45 percent of the American workforce – recently announced the launch of America’s Recovery Fund Coalition, which will advocate for a grant-based federal assistance program to power the resilience of American enterprise.
The economic shutdown due to COVID-19 has resulted in an unprecedented financial loss to American businesses and workers, with estimates placing the cost of an eight-week shutdown as high as $4.3 trillion in annual revenue. More than 30 million Americans have lost their jobs in just six weeks, and without further recovery funding, the Congressional Budget Office predicts national unemployment will stay above 10 percent well into 2021. U.S. GDP shrank 4.8 percent in the first quarter of the year. Behind these staggering numbers are families and entire communities at risk of losing their livelihoods as a result of COVID-19 and insufficient federal support. Based on the severe economic disruption of government directives to curb the spread of the COVID-19 virus, many US businesses are struggling to keep up with businesses expenses. These businesses are having a hard time figuring out how to find capital to pay rent and debt obligations, for payroll to rehire, and to make the necessary physical and safety adjustments to their facilities.
The Recovery Fund proposals create a streamlined and tailored federal grant 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 would also include anti-abuse provisions, audit and verification authority, a dedicated Special Inspector General with Congressional Oversight Board, and would be leveraged through private sector servicers.
With state and local governments planning to relax social distancing rules in the coming weeks, local businesses need a streamlined recovery fund to provide the medium-term capital to safely reopen – and stay open – as they emerge from lockdown and the American economy gets back up to speed. Existing programs like the Paycheck Protection Program were a well-intentioned effort to help defray the impact of the COVID-19 economic crisis, but we must build upon the current options and address the overwhelming need for additional capital support to businesses. A broad-based, efficient recovery fund path is a critical path forward. Without this type of fund, our resorts, hotels, retailers, theatres, restaurants, and many other industries will be decimated – and our communities will be poorer both economically and culturally as a result. ARDA in concert with the Coalition is discussing the fund concept with Congress and will provide additional updates as things move forward.
Expansion of the Payroll Protection Program
ARDA’s Federal Affairs Team along with ARDA-ROC Chairman Ken McKelvey have been actively engaged in advocating for the expansion of the Payroll Protection Program (“PPP”) Loans as outlined in the CARES ACT to include HOA’s and other 501(c) non-profits that are currently excluded in the definition and eligibility requirements. We were pleased to see that HR 6800 – The Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) /Cares Act 2.0″ legislation expands the eligibility of PPP loans to include all nonprofits of all sizes. This is the first of many hurdles, but nonetheless progress and a win for the timeshare industry.
The HEROES Act further provides additional funding in response to the ongoing COVID-19 pandemic. While the Bill is anticipated to pass the House of Representative this week, it has little chance of passing in the U.S. Senate. Senate Republican Leaders indicated they prefer to wait and evaluate the current economic impact of the recently passed stimulus bills. Further, Senate Republicans are preparing for a major package of COVID related liability reforms to protect business from unnecessary lawsuits.
Summaries of the Legislation
The text of The HEROES Act, H.R. 6800 – Learn more
One-pager on the legislation – Learn more
Section-by-section summary – Learn more
Resource on the state and local relief provisions – Learn more