Notice to Small Businesses, Renters, and Homeowners.

Caveat: I have not used this before, so I'm learning, too. Just found out about it. Please share your experiences in the comments. As we all figure out how to operate small businesses and services to our community, you may find it difficult to pay your mortgage if this goes on very long.

The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Who can use an SBA disaster loan

The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters.

See sba.gov/disaster and Coronavirus (COVID-19): Small Business Guidance & Loan Resources

Money From On High

WASHINGTON—The Trump administration said it backs a plan to send checks directly to Americans, likely within the next two weeks...
Source: WSJ

In another series of unprecedented moves, Congress and the Administration announced plans to send money directly to Americans and extend income tax due dates by 90 days, including waiving late filing penalties.  The cash grab has bipartisan support, with $1000 being floated as the amount per person.

Meanwhile, over at the Small Business Administration, Treasury Secretary Mnuchin said the administration seeks emergency loans administered through the Small Business Administration.  The Treasury is also considering deferring quarterly tax payments to help small firms conserve cash.

Being unprecedented, it's impossible to predict the outcome.  Personally, I wish creative thinking existed in political realms.  What we need is a 90 day weekend.  Financial markets don't crash when they aren't open.  Hedge funds can't algorithmically compress 3-months of change into 3 hours of trading activity.  Shut everything down like a national holiday. Use the extra time in the financial markets, businesses, and agencies to figure out how to tally up the consequences and process the rapidly changing dynamics of normal life, whatever normal is going to become.

Obviously complex questions have to be addressed.  But controlling consequences of drastic moves when a train is out of control and running above maximum speed likely does more damage than than just putting on the brakes.

Meanwhile, the Federal Reserve keeps churning out options. 

The Federal Reserve said it would set up a lending facility to support short-term commercial debt markets to prevent intensifying funding strains from accelerating economic damage from the coronavirus.

The U.S. Treasury will provide $10 billion of credit protection from its Exchange Stabilization Fund (ESF), funneled through the Commercial Paper Funding Facility (CPFF).  A similar CPFF was used for the 2008 financial crisis.

The commercial paper market operates by providing short term financing needs for large business operations, typically with loan terms in weeks.  The commercial paper assets make up most money market funds.  Money market funds are supposed to be as safe as cash, although they don't carry FDIC insurance like cash in the bank.  Without stable commercial paper markets, money market funds can break the buck, creating more difficulties downstream for investors, 401(k)s, and pension funds.