The Reinsurance Association of America (RAA), together with a coalition representing the US business community, has sent a letter to President Trump and Congressional leaders, urging them to support the Covid-19 Business and Employee Continuity and Recovery Fund.
The Recovery Fund is a solution designed to to support businesses and employees hurt by the Covid-19 pandemic.
It was borne out of a collaboration between the insurance and retail sectors, and would be funded by the federal government and under the authority of a special Fund Administrator.
The Fund would help businesses retain and rehire employees, maintain worker benefits and meet operating expense obligations.
Frank Nutter, President of the RAA, commented: “The RAA together with a broad-based coalition of industry and retail trades, has developed what we consider to be a realistic and workable solution to the challenges faced by the business community during the Covid-19 pandemic. Our industry can and will support people and businesses hurt by this pandemic.”
In the letter, the coalition noted that the government mandates put in place to stem the spread of COVID-19 are driving an unprecedented level of disruption to business activity.
“This disruption is rippling across the U.S. economy, severely constraining consumer and business spending,” the letter stated. “Organizations of all sizes and their employees are facing insurmountable strain.”
“Without broad-based and expeditious federal action, long-term damage to the financial markets, rampant unemployment, and irreparable harm to communities are almost certain.”
The RAA acknowledged that the loan programs instituted by the CARES Act provide a down payment on economic support for Main Street businesses, but it said that additional liquidity will be required for impaired industries and businesses to avoid a systemic, economic crisis.
“We believe the establishment of the Recovery Fund is necessary to supplement the efforts to expand lending in the CARES Act,” the letter went on.
“Businesses across the United States are looking to you to restore confidence in our economy, support employee retention, and position businesses to survive this crisis and rebound once it ends.”
