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RECORDING: U.S. Representative Garret Graves
LOUISIANA REALTORS • Mar 31, 2020
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Earlier today, Louisiana REALTORS® hosted an online forum with U.S. Representative Graves and he provided a breakdown of the steps Congress has taken to provide support to REALTORS and small business owners. Representative Graves answered several questions regarding unemployment benefits and SBA loans that are available. We appreciate Congressman Graves’ time and the opportunity to provide clarity on some of the issues. A follow up email was provided with some questions and answers and has been copied below for your reference.
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From: "Graves, Garret" Date: March 31, 2020 at 11:11:42 AM CDT Subject: Unemployment Insurance
CARES Act: Unemployment Insurance Questions Answered
The CARES Act – the economic relief bill signed into law on Friday – provides much-needed temporary support for American workers impacted by COVID-19. It dedicates $250 billion to give workers more access to unemployment benefits during this public health emergency.
- Creates a temporary Pandemic Unemployment Assistance program.
- Expands coverage to more workers, including self-employed, contractors, and furloughed workers.
- Increases by $600/week Americans’ unemployment benefits for the next 4 months.
- Makes available 13 additional weeks of unemployment for those who need it.
- Waives the normal one-week waiting period.
- Includes funding to offset 50% of the costs of state and local government and non-profits for cost of paying unemployment to their workers.
- Supports short-time, work share programs as an alternative to layoffs.
Q: Are self-employed and independent contractors eligible?
A: Yes. Self-employed and independent contractors, like gig workers and Uber drivers, are eligible for Pandemic Unemployment Assistance. This also covers workers laid off from churches and religious institutions who may not be eligible under the state’s program.
Q: What about furloughed workers?
A: Yes. States have policies in place to allow furloughed workers to receive unemployment benefits and part-time workers can receive partial benefits. The Pandemic Unemployment Assistance program also helps workers stay connected to their employer by allowing unemployment benefits for workers who have a job but are unable to work or telework due to COVID-19-related reasons and are not receiving paid leave through their employer.
Q: How much do unemployed workers get?
A: It varies. Unemployment benefits in Louisiana average approximately $247/week. Generally, a person’s benefits replace about 1/3 to 1/2 of their wages. The CARES Act provides an additional $600 per week on top of whatever a person would normally receive in their state – limited to the next 4 months (expires July 31, 2020). This will end up providing a higher than average wage replacement rate for low-wage workers.
Q: Can individuals get more on unemployment than they got in their paycheck?
A: The additional $600 in weekly benefits is designed to keep as many workers as whole as possible through the emergency. Some may temporarily receive more benefit than their paycheck – though that number is very small compared to everyone receiving Unemployment. Of course, people receiving Unemployment do not receive health insurance, retirement or other important benefits that can be available at work. The temporary $600 is only available through July 31.
Q: How long do unemployment benefits last?
A: It varies by state, but most states provide access to unemployment benefits for a maximum of 26 weeks. The CARES Act provides federal funding for an additional 13 weeks for those who need it. Funding for this expires December 31, 2020.
Q: Are unemployment benefits taxable and do they count as income?
A: Yes. Unemployment benefits are taxable income and they generally count as income when determining eligibility for public assistance programs.
Q: What does unemployment insurance look like in my state?
A: To find out how to apply for unemployment in your state visit:
A state-by-state summary of how each state determines weekly unemployment benefits amounts can be found here: https://oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2020.pdf
For information about how your state’s unemployment agency is responding to the COVID-19 public health emergency visit: https://www.naswa.org/resources/coronavirus
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From: "Graves, Garret" Date: March 31, 2020 at 11:05:32 AM CDT Subject: flexibility for financing
- Direct relief to businesses and families: On March 27, 2020, the House passed the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide direct support to families and workers that have been hit hardest by the COVID-19 pandemic.
Supporting the flow of credit to employers, consumers, and businesses:
- On March 23, 2020, the Federal Reserve announced that it would create a variety of new programs which would, together, provide up to $300 billion in new financing. These programs include:
- Establishing three new facilities:
- Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance.
- Secondary Market Corporate Credit Facility (SMCCF) for outstanding corporate bonds.
- Term-Asset Backed Securities Loan Facility (TALF), which will enable issuance of ABS backed by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.
- Expanding two existing facilities:
- MMLF to include a wider range of securities, including VRDNs and bank CDs.
- CPFF to include high-quality, tax-exempt CP as eligible securities.
- Protecting Renters in Multifamily Properties: On March 23, 2020, the Federal Housing Finance Agency (FHFA) announced that it will require Fannie Mae and Freddie Mac (The Enterprises) to offer mortgage forbearance to multifamily property owners with the condition that they suspend evictions for residents unable to pay rent due to the impact of the coronavirus. This option is open to all multifamily properties with an Enterprise-backed mortgage, and will help renters stay in their homes during these trying times.
- Lending to businesses and consumers: On March 19, 2020, the Federal Deposit Insurance Corporation (FDIC) Chair, Jelena McWilliams, took an important step to ensure financial institutions are able to lend to businesses and consumers impacted by the coronavirus (COVID-19) by pushing for a delay in implementing the ill-advised Current Expected Credit Losses (CECL) standard.
- Protecting homeowners: On March 18, 2020, the Federal Housing Finance Agency (FHFA) and the Trump Administration took a bold step to prevent homeowners with loans insured by the Federal Housing Administration (FHA) or owned by Fannie Mae or Freddie Mac from being foreclosed upon or evicted during this national emergency.
- Defense Production Act: On March 18, 2020, President Trump invoked the Defense Production Act (DPA) in the ongoing fight against coronavirus (COVID-19) to help ensure the American people have access to testing, medical supplies, and lifesaving medicines.
- Money Market Fund Assistance: On March 18, 2020, the Federal Reserve established the Money Market Mutual Fund Liquidity Facility (MMFL) to assist money market funds in meeting demands for redemptions by households and other investors. This facility will enhance overall market function and provide more credit to the broader economy.
- Expanding access to credit: On March 17, 2020, the Federal Reserve announced it will establish a Primary Dealer Credit Facility (PDCF). The PDCF allows “primary dealers” to have access to more liquidity for their short-term financing needs. This allows these primary dealers to provide more credit to job creators and households in need during COVID-19.
- Cash flow to businesses and consumers: On March 17, 2020, the Fed announced that it will establish a commercial paper facility to support companies and banks providing financing for a wide range of economic activity. For companies, that means helping in their day-to-day operation like making payroll. For households, it means providing funding to financial firms that provide auto loans and mortgages to American families.
- More flexibility: On March 17, 2020, federal bank regulatory agencies announced an interim final rule that facilitates the use of firms' capital buffers to promote lending activity to households and businesses.
- Discount window: On March 16, 2020, federal bank regulatory agencies released a statement encouraging banks to use the Federal Reserve's "discount window" so that they can continue supporting households and businesses.
- Stimulating the economy: On March 15, 2020, the Federal Reserve cut interest rates, bringing the federal funds rate to between 0% and 0.25% to stimulate the economy.
- Increased relief: On March 12, 2020, the New York Fed announced it will inject $1.5 trillion into funding markets to ensure stability in repo market operations and in our financial institutions.
- Pandemic guidance: On March 10, 2020, financial regulators released an update to its pandemic planning for financial institutions to prevent disruption of core operations by the coronavirus.
- Consumer assistance: On March 9, 2020, federal and state bank regulators encouraged financial institutions to work with borrowers and customers affected by the coronavirus.
- Capital markets: The SEC is monitoring the capital markets and on March 4, 2020, provided conditional relief for certain filing requirements for companies affected by the coronavirus including guidance that allows certain in-person board meetings to be done remotely.
- Contingency planning: Regulators are communicating and coordinating with their employees to ensure they are taking appropriate precautions. The SEC became the first federal agency to ask personnel to work from home due to an employee who may have coronavirus.
- Industry outreach: The White House and Treasury Department are communicating and meeting with Wall Street executives to monitor the broader impact of the coronavirus on our financial system and the U.S. economy.
Mitigating Coronavirus Impact on Borrowers’ Financial Health:
The Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) have taken steps to remind borrowers of hardship forbearance options.
Key facts:
FHFA has announced that COVID-19 will trigger protocols similar to a natural disaster.
Borrowers should contact their lenders directly before missing a payment to report a hardship related to COVID-19.
Hardship forbearance resources can be used to mitigate the impact of a missed paycheck, lost job, or other financial hardship resulting from COVID-19.
Protecting Consumers from Coronavirus Financial Impact:
The Consumer Financial Protection Bureau (CFPB) has provided useful resources to help consumers
protect their families from the financial impact of COVID-19.
You have trouble paying your bills or loans:
The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their needs during the coronavirus pandemic. Borrowers should reach out to servicers and lenders if they anticipate having trouble making their next payment.
You lose your income:
State and local governments provide helpful resources for employees impacted by the coronavirus. Additionally, seniors, who are disproportionately impacted by the coronavirus, may be eligible for government benefits available to older adults who need financial help.
You are targeted by a scammer:
Scammers are always on the hunt for opportunities to take advantage of consumers. During uncertain times like these, we are especially vulnerable. Learn more about how to spot a scam and report fraud to the appropriate agency.
Bill Tracking Report as of 5/3/2024
Update from Katie Johnson, NAR Chief Legal Officer and Chief Member Experience Officer
Update from Katie Johnson, NAR Chief Legal Officer and Chief Member Experience Officer
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