Special Bulletin: Senate Approves Additional Funds for Small Business Relief

April, 2020

Key Takeaways:

Congress reached agreement on $484 billion measure designed largely to fund the Paycheck Protection Program (PPP), which depleted the original $349 billion it was allotted within two weeks
Of the total, approximately $310 billion will fund the PPP, serving to provide small business with loans
These loans are forgivable if several provisions are met including but not limited to the following:

Keeping/Rehiring Staff
Using 75% of Money for Payroll
Funds Used Within 8 Weeks
This bill will also provide $75 billion for hospitals and healthcare and $25 billion for COVID-19 testing

Key Takeaways:

The White House has issued guidance for state and local governments outlining a three-stage plan for rolling back restraints on activity
Key hurdles before beginning reopening include a two-week downtrend in COVID-19 cases, assurance that health care facilities have adequate capacity, and robust testing
The three phases include gradually opening up restaurants, movie theaters, gyms, schools, and sporting venues with continued adherence to social distancing and sanitation, and special considerations for vulnerable populations
Cautious thawing of restrictions while maintaining positive momentum on health front could ease job losses and support economic growth

Key Takeaways:

Existing home sales dropped 8.5 percent in March as concerns over healthcare crisis and economic uncertainty weighed on buyers purchase decisions
Many of the March closings were put under contract in January and February, so the full extent of the impact on sales is not yet fully reflected in the data
Home buyer traffic index declined more than 50 percent from February to March pointing to continued weakness in the coming months