Yale School of Management

Posts by CARES Act

GAO Report Highlights Opportunities to Improve Federal COVID Response and Recovery Efforts

July 13, 2020
On June 25, 2020 the Government Accountability Office (GAO) provided a comprehensive report to Congress detailing the US government’s response to the COVID pandemic, particularly the four relief laws passed prior to June 2020, and actionable steps to improve those efforts. Within these four laws, $2.6 trillion has been mobilized (breakdown below). However, the GAO does not have insight into the actual expenditures, only appropriations, as the federal agencies will begin detailing spending in their July 2020 monthly reporting. In regards to the overall federal response, the GAO notes the speed with which the programs were launched. However it faults agencies for “[making] only limited progress so far in achieving transparency and accountability goals.” Continue reading “GAO Report Highlights Opportunities to Improve Federal COVID Response and Recovery Efforts”

Small Business Administration Announces Updates to Small Business Support Programs

June 18, 2020
The Small Business Administration (SBA) and Treasury recently released guidance related to the Paycheck Protection Program (PPP) to clarify that they will forgive loans to employers that are unable to rehire or maintain employment levels. The agencies also released a simplified forgiveness application. Continue reading “Small Business Administration Announces Updates to Small Business Support Programs”

Federal Reserve Expands Support to Corporate Bond Markets Again

June 16, 2020
On June 15, the Federal Reserve (Fed) updated and expanded the Secondary Market Corporate Credit Facility (SMCCF), one of the Fed’s corporate bond-buying programs, to support market liquidity and the availability of credit for large employers. The recent change allows the facility to buy U.S. corporate bond portfolios that track a broad market index. Continue reading “Federal Reserve Expands Support to Corporate Bond Markets Again”

Federal Reserve Amends Main Street Lending Program

June 10, 2020
On June 8, the Federal Reserve announced significant changes to the Main Street Lending Program, a new facility designed to support lending to small and medium-sized businesses. The changes include decreasing the minimum loan amount for some loans, increasing the maximum loan amount, amending the loan repayment schedule, and extending the loan term.  Continue reading “Federal Reserve Amends Main Street Lending Program ”

FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria

May 26, 2020
On May 13, the Federal Housing Finance Agency (FHFA) announced that homeowners who take advantage of COVID-19 mortgage forbearance will have the option to defer payment of the missed amounts until the home is sold or refinanced, or the mortgage matures, once they return to making their normal monthly mortgage payments. The next day, the FHFA announced an extension of its foreclosure and eviction moratoria to June 30. Continue reading “FHFA Allows Payment Deferral for Forbearance Payments While Extending Foreclosure and Eviction Moratoria”

US Businesses Navigate Multiple Government Support Programs

May 12, 2020
In response to the COVID-19 pandemic, the United States has adopted multiple programs providing support to businesses, specifically targeting job retention, while at the same time expanding unemployment insurance benefits and eligibility. Programs to support businesses vary across types of benefit and eligibility criteria. This post summarizes government support options available to businesses in the United States and some potential considerations for employers and employees. Continue reading “US Businesses Navigate Multiple Government Support Programs ”