COVID 19 Update 48
Cuomo Adds More Metrics to Reopening Strategy
In his daily briefing the Governor reiterated that the State’s reopening will be based on facts and data adding that 30% of hospital and ICU beds must be available after elective surgeries resume and the rate of transmission must be 1.1 or less. We assume he means in a particular region, however, today the Governor announced that certain counties can begin to do elective surgeries.
Read the governor’s Press Release
SBA, Treasury Announce Audits Plans for Certain SBA Loans
“The Paycheck Protection Program is providing critical support to millions of small businesses and tens of millions of hardworking Americans.
“We have noted the large number of companies that have appropriately reevaluated their need for PPP loans and promptly repaid loan funds in response to SBA guidance reminding all borrowers of an important certification required to obtain a PPP loan. To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Regulatory guidance implementing this procedure will be forthcoming.
“We remain fully committed to ensuring that America’s workers and small businesses get the resources they need to get through this challenging time.”
Liability Reform Proposals Gaining Traction
The NAM has been working with Congress and the White House to secure liability protections necessary for manufacturers to continue producing the personal protective equipment and others supplies our country needs during the COVID-19 response efforts. As more businesses prepare to reopen, Congress must protect those who are trying to do the right thing. Manufacturers’ plan is gaining traction in Congress, with Senate Majority Leader Mitch McConnell (R-KY) saying he will prioritize liability protections when the Senate returns.
Read the NAM’s “Pandemic Liability Policy Recommendations” here.
First Quarter GDP Shows Economy Shrank 4.8%, Few Economists See Quick Rebound from Recession
The U.S. economy shrank at a 4.8% annual rate in the January-March quarter, the government estimated Wednesday, as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record.
Yet the drop in the first quarter will be only a precursor of a far grimmer report to come on the current April-June period, with business shutdowns and layoffs striking with devastating force. With much of the economy paralyzed, the Congressional Budget Office has estimated that economic activity will plunge this quarter at a 40% annual rate.
Meanwhile… Eurozone Economy Contracts at Fastest Pace Ever
First-quarter GDP figures released today revealed the economic effects of the early weeks of lockdown. Output fell by 3.8% in the euro area, compared with the final quarter of 2019, with falls of 5.8% in France and 5.2% in Spain.
Analysts expect data from the second quarter to be even worse, with a series of closely watched economic indicators suggesting the bloc’s economy suffered an unprecedented collapse as businesses across the bloc shut down.
Fed Sticks To Coronavirus Plan: Zero Rates And QE
With the coronavirus shutdown costing the U.S. economy 24 million jobs, the Fed statement noted “a surge in job losses” and “tremendous human and economic hardship” due to the coronavirus crisis. Policymakers said the health crisis will weigh heavily in the near term and “poses considerable risks to the economic outlook over the medium term.”
The Fed said it will keep rates in the 0%-0.25% range until the “economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”
Powell said at his post-meeting press conference that the Fed would continue to act “forcefully proactively and aggressively” to try to assure a robust recovery. But he indicated that the road would likely be a long one. “It will take some time” to reach “anything that resembles maximum employment,” he said.
Council Webinar: Dealing with Supply Chain Disruption
- Thursday, May 7, 1:00 pm – 2:00 pm
- Cost: No fee to participate – limited to the first 100 registrants.
Please contact abutler@councilofindustry.org for the information.
Dr. Dennis Yu, Associate Professor of Operations & Information Systems and Associate Dean of Graduate Programs & Research will discuss strategies to help your firm manage risk and maintain operational flexibility in you supply chain.
- Definition of supply chain risks
- How to assess supply chain vulnerability
- Key strategies such as mitigation strategies and contingency planning to build a resilient supply chain
