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Daily Financial Regulation Updates - Sunday, April 12, 2020

April 13, 2020

By FedACTion Task Force

Congress

to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, Enacted March 27, 2020.

from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

U.S. Senate

Committee on Small Business and Entrepreneurship

COVID-19: Rubio, Cardin Urge SBA to Rapidly Distribute Entrepreneurial Assistance Grants under the CARES Act

April 11, 2020

U.S. Senators Marco Rubio (R-FL) and Ben Cardin (D-MD), Chairman and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, sent a letter to Jovita Carranza, Administrator of the Small Business Administration (SBA), asking the agency to expeditiously fulfill the grant requirements outlined in Section 1103(c) of the CARES Act for SBA Small Business Development Center and Women’s Business Center Associations. These grants would establish a much-needed centralized online platform that consolidates available federal resources for small businesses.

Federal Agencies

Department of Treasury

COVID-19: Treasury Announces Payroll Support to Aid Employees of Small Passenger Air Carriers

April 10, 2020

U.S. Treasury Secretary Steven Mnuchin announced certain details of the Payroll Support Program under the CARES Act. Title IV of the CARES Act provides payroll support for American workers employed by passenger air carriers, cargo air carriers, and related contractors. The U.S. Department of the Treasury (Treasury) has received more than 230 applications for payroll support from passenger air carriers. After consultation with the Secretary of Transportation and Treasury’s outside financial and legal advisors, Secretary Mnuchin has determined that as a result of benefits to the public—including maintaining needed air service, refraining from involuntary furloughs, and limiting share buybacks and executive compensation—Treasury will not require passenger air carriers that will receive $100 million of payroll assistance or less to provide financial instruments as appropriate compensation. As such, for passenger air carriers with payroll support payments up to $100 million, funds will be available promptly upon approval of their applications. The majority of these requests seek less than $10 million.

FINRA

COVID-19: FINRA Publishes Investor Insight on Retirement Fund Access and Student Loan Relief in the CARES Act

April 10, 2020

The CARES Act includes provisions that provide temporary support related to retirement assets and student loan payments to help Americans deal with the economic impacts of the COVID-19 pandemic. FINRA’s update highlights four issues, including: (i) temporary waivers of all required minimum distribution requirements for tax-qualified defined contribution plans; (ii) temporary waivers of early withdrawal penalties for a COVID-19-related distribution from a retirement account; (iii) a temporary increase in the amount of retirement plan loans; and (iv) certain relief for student loan borrowers.