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The National Association of Real Estate Investment Trusts, or Nareit, along with Senate Banking Chairman Mike Crapo (R-ID) sent letters to Treasury Sec. Steven Mnuchin requesting that he waive a provision in the Federal Reserve’s Main Street Lending Program. Language in the direct loan program established under the CARES Act restricts these loans only to eligible businesses that agree not to distribute dividends for the period of the loan plus one year.

The prohibition on dividend payments, Nareit and Crapo argue, could disqualify real estate investment trusts from accessing critical liquidity under the legislation during a time of terrible financial hardship for many sectors of the market. REITs are required by law to pay out dividends, their letters note.

“Like most sectors of the economy, REITs specializing in senior housing have been impacted by the economic upheaval caused by COVID-19,” Robert Dibblee, Nareit senior vice president of government relations, told McKnights. “On behalf of all our members, Nareit has written to Treasury Secretary Steven Mnuchin requesting he waive this provision for REITs and clarify that the limitation on dividends will only apply where dividends are not otherwise required by law.”