Sam Hanson, Jeremy Stein, Adi Sunderam, and Eric Zwick
We propose that the government provide business continuity support, allowing businesses to meet their recurring fixed obligations during the COVID-19 pandemic. The goal is to avoid a large wave of bankruptcies and preserve firm balance sheets to set the stage for a strong economic recovery once the pandemic ends. Business Continuity Insurance describes a proposal that would operate through the tax system, and provides a detailed estimate of the cost of overhead assistance. Business Continuity Loans describes a proposal that would operate through the Federal Reserve system.
