News You Can Use: Navigating the Crisis Together – 04.03.20

News You Can Use
April 03, 2020

This week we have continued to unpack the stimulus bill, along with assessing the impact of COVID-19 on our industry. Below are several guides and our most recent webinars to help you take advantage of this package, understand the different opportunities, and hear about how our industry is innovating and adapting to the new normal.

New Guidance

The CARES Act passed by Congress is less a stimulus package than it is an unprecedented bridge loan. If this feels like a bumpy ride, it is, but we are navigating this crisis together.

The new loan program at the Small Business Administration (SBA) is the first program that we are continuing to evaluate as changes are happening daily. The Payroll Protection Program (PPP) did not even exist seven days ago. Last year the SBA’s 7(a) program lent out $23 billion, yet now they are trying to push $350 billion through a similar infrastructure with new rules in a matter of weeks. To date, AALU/GAMA’s work has focused mostly on the borrower side of the equation. Of course, there is an entire process and set of rules that must unfold for the lenders as well. That side of the coin is what you are seeing reflected in the news this morning.

Three critical things that AALU/GAMA recommend you keep in mind:

  1. We are here to help and will be with you each step of the way;
  2. The government intends to provide assistance to you and your employees;
  3. The fastest way to get a PPP loan will be working with a bank with whom you already have a relationship.


  • Underwriting in a Socially Distanced World (4/2) – Dennis Bartos, Chief Medical Underwriter at Agency One, Jessica Caracofe, VP Underwriting at Agency One, Gonzalo Garcia, Partner at AgencyONE, and Kim Natovitz, Associate at TriBridge Partners discuss the evolving underwriting process during COVID-19. Watch the recording here.
  • How Life Insurance Carriers Are Navigating the COVID-19 Crisis (4/1) – ACLI CEO Susan Neely and AALU/GAMA CEO Marc Cadin discuss the carrier response to the COVID-19 crisis. Watch the recording here.
  • Deep Dive into the Stimulus Bill: New Rules That Would Apply to Your Business (3/31) – Federal Policy Group Managing Director Ken Kies joined AALU/GAMA’s Armstrong Robinson and Chris Morton to unpack the stimulus bill and provide answers to your questions. Watch the recording here.

Don’t Miss: Executive Compensation Provisions: FAQs

The CARES Act provides over $500 billion in loans, loan guarantees, and other economic support for airlines and other eligible businesses adversely impacted by the coronavirus pandemic. However, businesses receiving support under this program must limit compensation and severance for employees with 2019 total compensation over $425,000—including restrictions on using the program to enhance senior executive compensation.

There are a number of key terms in these provisions that are undefined, including “total compensation.” This Q&A provides the details of the executive compensation provisions to date. Our counsel at Troutman Sanders will be providing a WR Marketplace analysis on the full impacts of these provisions as Treasury soon issues clarifying guidance.

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