“Will Commercial Real Estate Benefit from the Financial Stability Plan and the Stimulus Act?”
On February 10, 2009, Treasury Secretary Geithner announced the Financial Stability Plan designed to address the ongoing U.S. financial crisis. On February 17th, President Obama signed the American Recovery and Reinvestment Act of 2009 (the “Stimulus Act”), a $787 billion stimulus package intended to spur growth and job creation. Individually, the separate programs in the Financial Stability Plan and provisions in the Stimulus Act may have only a limited, though positive, impact on stabilizing or reviving the U.S. commercial real estate market. Collectively, however, the whole may be greater than the sum of its parts. These programs and provisions may restore consumer and investor confidence and have a direct impact on commercial real estate lending.
This Stroock Special Bulletin summarizes key aspects of the new and expanded programs in the Financial Stability Plan and the relevant tax portions of the Stimulus Act that are likely to have the most direct impact on commercial real estate lending.