COVID-19 Business and Employee Continuity Recovery Fund
First published on May 1, 2020
More than 40 trade associations support the proposed COVID-19 Business and Employee Continuity and Recovery Fund. This concept fills in around the Paycheck Protection Program (PPP) by covering the payroll, utility, rent and other continuing expenses of impacted businesses:
- Reaching back to the “gap” period during the first weeks of the COVID-19 crisis;
- Extending forward beyond the end of this year; and
- Expanding the scope of eligible businesses.
The program would offer grants in contrast to the forgivable loans provided under the PPP. By moving away from a loan-based structure, the proposal draws on a wider range of private sector resources to administer the program such as insurance companies and accounting firms.
A special administrator would manage day-to-day operations of the program subject to Congressional and Executive oversight. Presumably, this special administrator would establish procedures, set eligibility standards and define benefits as well as enter into contracts with service providers.
A summary of the proposal and comparison with the PPP is attached.
More than 40 trade associations support the proposed COVID-19 Business and Employee Continuity and Recovery Fund. This concept fills in around the Paycheck Protection Program (PPP) by covering the payroll, utility, rent and other continuing expenses of impacted businesses:
- Reaching back to the “gap” period during the first weeks of the COVID-19 crisis;
- Extending forward beyond the end of this year; and
- Expanding the scope of eligible businesses.
The program would offer grants in contrast to the forgivable loans provided under the PPP. By moving away from a loan-based structure, the proposal draws on a wider range of private sector resources to administer the program such as insurance companies and accounting firms.
A special administrator would manage day-to-day operations of the program subject to Congressional and Executive oversight. Presumably, this special administrator would establish procedures, set eligibility standards and define benefits as well as enter into contracts with service providers.
A summary of the proposal and comparison with the PPP is attached.
More than 40 trade associations support the proposed COVID-19 Business and Employee Continuity and Recovery Fund. This concept fills in around the Paycheck Protection Program (PPP) by covering the payroll, utility, rent and other continuing expenses of impacted businesses:
- Reaching back to the “gap” period during the first weeks of the COVID-19 crisis;
- Extending forward beyond the end of this year; and
- Expanding the scope of eligible businesses.
The program would offer grants in contrast to the forgivable loans provided under the PPP. By moving away from a loan-based structure, the proposal draws on a wider range of private sector resources to administer the program such as insurance companies and accounting firms.
A special administrator would manage day-to-day operations of the program subject to Congressional and Executive oversight. Presumably, this special administrator would establish procedures, set eligibility standards and define benefits as well as enter into contracts with service providers.
A summary of the proposal and comparison with the PPP is attached.
More than 40 trade associations support the proposed COVID-19 Business and Employee Continuity and Recovery Fund. This concept fills in around the Paycheck Protection Program (PPP) by covering the payroll, utility, rent and other continuing expenses of impacted businesses:
- Reaching back to the “gap” period during the first weeks of the COVID-19 crisis;
- Extending forward beyond the end of this year; and
- Expanding the scope of eligible businesses.
The program would offer grants in contrast to the forgivable loans provided under the PPP. By moving away from a loan-based structure, the proposal draws on a wider range of private sector resources to administer the program such as insurance companies and accounting firms.
A special administrator would manage day-to-day operations of the program subject to Congressional and Executive oversight. Presumably, this special administrator would establish procedures, set eligibility standards and define benefits as well as enter into contracts with service providers.
A summary of the proposal and comparison with the PPP is attached.
While the proposal is a logical evolution of the framework established by the Paycheck Protection Program, conspicuously absent in this next-phase thinking is any explanation of how to:
- Finance what would appear to be more than a trillion-dollar federal outlay;
- Coordinate benefits with a myriad of potentially overlapping state and federal programs; and
- Resolve the gathering clamor over business income insurance claims without years of litigation.
Despite these open questions, it is encouraging that such a large and diverse collection of stakeholders have rallied behind a common concept to support continued economic recovery during the ongoing crisis. Next is the far more challenging task of building a program to help manage the risk of future pandemics.
While the proposal is a logical evolution of the framework established by the Paycheck Protection Program, conspicuously absent in this next-phase thinking is any explanation of how to:
- Finance what would appear to be more than a trillion-dollar federal outlay;
- Coordinate benefits with a myriad of potentially overlapping state and federal programs; and
- Resolve the gathering clamor over business income insurance claims without years of litigation.
Despite these open questions, it is encouraging that such a large and diverse collection of stakeholders have rallied behind a common concept to support continued economic recovery during the ongoing crisis. Next is the far more challenging task of building a program to help manage the risk of future pandemics.
While the proposal is a logical evolution of the framework established by the Paycheck Protection Program, conspicuously absent in this next-phase thinking is any explanation of how to:
- Finance what would appear to be more than a trillion-dollar federal outlay;
- Coordinate benefits with a myriad of potentially overlapping state and federal programs; and
- Resolve the gathering clamor over business income insurance claims without years of litigation.
Despite these open questions, it is encouraging that such a large and diverse collection of stakeholders have rallied behind a common concept to support continued economic recovery during the ongoing crisis. Next is the far more challenging task of building a program to help manage the risk of future pandemics.
While the proposal is a logical evolution of the framework established by the Paycheck Protection Program, conspicuously absent in this next-phase thinking is any explanation of how to:
- Finance what would appear to be more than a trillion-dollar federal outlay;
- Coordinate benefits with a myriad of potentially overlapping state and federal programs; and
- Resolve the gathering clamor over business income insurance claims without years of litigation.
Despite these open questions, it is encouraging that such a large and diverse collection of stakeholders have rallied behind a common concept to support continued economic recovery during the ongoing crisis. Next is the far more challenging task of building a program to help manage the risk of future pandemics.
