President Trump on Friday, April 24th signed new COVID-19 pandemic relief legislation that pumped over $310 billion in new funds into the Payroll Protection Program (PPP) and provided additional funds for hospitals.
Fed Provides More Guidance on the CARES Act Main Street Program
The Federal Reserve Board on Thursday, April 30, 2020 provided additional guidance and details for the implementation of the Main Street Program – a loan facility created by the CARES Act for small- and medium-sized businesses. A copy of the Fed’s press release is attached (http://www.acraorg.com/wp-content/uploads/2020/04/5-1-20-attachment-3.pdf) and the release has embedded in it additional links to adjusted term sheets.
Focus Shifts to Stimulus 4.0 (or CARES 2.0)
The focus in D.C. has now shifted to whether – or perhaps when – there will be a fourth pandemic relief/economic stimulus package considered and enacted – variously called Stimulus 4.0 or CARES 2.0. While Congress is not scheduled to be in formal session in early May, House and Senate leaders and the chairs of various key congressional committee are already in discussions about what a 4.0 package should look like. House Speaker Pelosi continues to press for funds for state and local governments, which face massive layoffs and potential bond defaults due to reduced tax income from reduced economic activity. Senate majority leader McConnel stated that he would like to see liability projections for businesses operating during the pandemic.
ACRA’s Board, COVID-19 Task Force, and Legal and Legislative Committee have been working on establishing ACRA’s priorities for the next stimulus bill. ACRA’s 4.0 priorities are:
• Restoring Liquidity – adoption of a program to assist car rental companies to reduce their debt or fleet sizes, or perhaps to shore up the used car market, until the car rental business picks up again;
• Airport Issues – working on two fronts: (1) working with government agencies to encourage airports to provide relief from MAGs, rent abatement and CONRAC fees; and, (2) seek federal grants to airports to make up for reduced MAG payments from all concessionaires, including car rentals;
• Liability Protection – As essential businesses that must keep operating during the pandemic, car rental companies should not be open to lawsuits if a renter or passenger suspect he or she has contracted the virus while in a rental car if the company has taken reasonable steps to sanitize the vehicle; and,
• Travel Tax Credit – provide tax credits for businesses and individuals for airline ticket purchases, car rentals, hotel stays, etc. to jumpstart corporate and leisure travel once the public health emergency is over.
Article Provided by ACRA (American Car Rental Association)
BILL PLAMONDON, PRESIDENT, SHARON FAULKNER, EXECUTIVE DIRECTOR
GREG SCOTT, EDITOR