2 Trillion Dollar CARES Act Passed by Congress
If you have already been reading the headlines recently you are likely aware that there is a lot of uncertainness in the economy at the moment. Luckily for the individuals and businesses of our nation the government has cobbled together a response in record time in what has come to be called the CARES act. This legislation is a fusion of multiple economic stimulus products that have been created to help small businesses and everyday Americans.
What was included to help small business?
It is good to talk about how there is 2.2 trillion dollars worth of aid bundled in the plan as a whole but that does you no good if you are not aware of how to access these perks. The majority of the features will come through either the Treasury directly or the Small Business Administration.
What is the Paycheck Protection Program going to do?
Due to the lockdown, there are hundreds of thousands of businesses that have been compelled to close their doors. Many of these businesses were not ready for an disruption in economic activity for quite this long. This has led to many of them being forced to let their employees go. The PPP is a grant program that small businesses with under 500 staff members can have the government pay the earnings of their employees for them for a brief time period.
Accessing the Small Business Disaster Loans
There are a great deal of businesses that have suffered economic problems as a result of the shutdown. The Small Business Administration has been providing forgivable loans for companies that qualify.
When do the Expanded Unemployment Benefits get started?
The federal government has vowed to give an extra $600 per week each week for up to four months on top of whatever their state’s usual unemployment benefits give to their citizens. Some people are in fact making more at the moment being on unemployment than they made at their job.
What is the present Status of the Program?
It is difficult to say for sure what would have happened if the government had not stepped in at all so it’s hard to say exactly what the side effects have been so far. The small business loan program was so accepted that it ran out of funds within two weeks. For now, the economic stimulus does seem to have eliminated a complete economic crash though.