RAA-led coalition urges Trump administration to back COVID-19 business recovery fund

The Reinsurance Association of America (RAA), together with a coalition representing the US business community, sent a letter to President Trump and Congressional leaders urging them to support the COVID-19 Business and Employee Continuity and Recovery Fund.

The coalition believes that the recovery fund is a solution to support businesses and employees hurt by the COVID-19 pandemic. It would help businesses retain and rehire employees, maintain worker benefits and meet operating expense obligations.

The fund was borne out of a collaboration between the insurance and retail sectors. It would be funded by the federal government and under the authority of a special Fund Administrator.

Frank Nutter, president of the Reinsurance Association of America, 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 stated that "Government mandates that have been put in place to stem the spread of COVID-19 such as wide-spread quarantines, travel restrictions, and social-distancing measures are driving an unprecedented level of disruption to business activity and continuity."

"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 letter concluded saying: "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."