COVID-19 Washington Update: May 28, 2020
Kelley Drye Client Advisory
May 28, 2020
Today’s update on federal government activities in response to COVID-19, includes the Fed’s release (last night) of additional information on the forthcoming Main Street Lending Program.
 

Congress

Today, by a vote of 417-1, the House passed the bipartisan Paycheck Protection Program Flexibility Act, authored by Reps. Phillips (D-MN) and Roy (R-TX). The bill modifies the CARES Act’s Paycheck Protection Program (PPP) to provide additional flexibility for borrowers. As reported in our Wednesday update, the bill was modified at the last minute to reduce from 75 to 60 percent the portion of loan proceeds required to go toward payroll (as introduced, the bill would have completely eliminated the requirement).

Also today, the House failed to pass a separate bill introduced by Rep. Phillips that would have imposed additional transparency requirements on SBA lending programs. The bill had majority support, but not the two-thirds necessary for passage under suspension of the rules.

After votes, House Majority Leader announced that no votes are expected in the House next week – although committees will continue to work remotely. Leader Hoyer also said an updated 2020 legislative calendar will be release in the coming days.

Recent Congressional Statements / Letters
 
Other Stakeholder Statements / Letters
   

Federal Reserve

Federal Reserve Bank of Boston releases additional information for potential lenders and borrowers in the Main Street Lending Program, May 27, 2020 (program launch date remains TBD)

Upcoming Fed Events:
   

Agency Activity

Department of the Treasury
 
Internal Revenue Service
 
Department of Labor
 
Occupational Safety and Health Administration
 
Department of Health and Human Services
 
Food and Drug Administration
 
National Institutes of Health
 
Centers for Disease Control and Prevention
 
Federal Emergency Management Agency
 
Department of Defense
 
Department of Transportation
 
Environmental Protection Agency
 
U.S. Patent and Trademark Office
 
National Credit Union Administration
 
Federal Communications Commission
 
Commodity Futures Trading Commission
 
Export-Import Bank
   

State / Local Activity

Given the plethora of state and local actions, we recommend MultiState’s COVID-19 Policy Tracker as a comprehensive tool to monitor the response