The Recovery Fund would be underwritten by the federal government and operate under the authority of a special federal administrator. The federal administrator would be able to enter into contracts with interested businesses to manage the Recovery Fund and facilitate the distribution of funds and liquidity to impacted businesses. The requested relief would enable efforts to keep employees on the payroll, maintain worker benefits and meet debt and rent obligations. Strong anti-abuse provisions, such as audit requirements, would be included.
The proposal comes on the heels of the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES) and the extraordinary actions taken by the Federal Reserve last week are historic in scope and were necessary first steps. However, given the enormous scale of this crisis, businesses across every industry sector believe a bolder step is needed to address the unprecedented economic challenges facing our nation. Without additional urgent federal action, long-term damage to the financial markets, rampant unemployment and irreparable harm to communities are a near certainty.
The Recovery Fund will allow businesses to maintain their employees and emerge better positioned to advance an economic recovery. It would also maintain the integrity of contractual obligations that underpin the smooth functioning of business activity and the confidence of those who invest in the U.S. economy.