SFIA Requests Federal Assistance with Emerging Credit Crisis
SFIA joined other U.S. industries in seeking an emergency, temporary federal commercial trade credit insurance program to avoid a pending credit crisis caused by COVID-19 shutdowns. With retailers struggling, credit insurance is needed to bridge the gap and cover losses during the COVID shutdown, but insurers are scaling back credit limits to preserve their own bottom line. The collapse of credit insurance will have a ripple effect on supply chains and put U.S. jobs at risk. A federal credit insurance program to backstop existing insurers will provide the stability needed for businesses to manage through this economic slowdown.