Key Provisions for Small Business Owners in the COVID-19 Stimulus Package
Updated: Apr 7, 2020
Current as of 1:53pm, Thursday, March 26, 2020
UPDATE: The Senate passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), containing the provisions expressed below. The House has confirmed that it will vote on the CARES Act on Friday, March 27, 2020.
This afternoon, Congress is expected to pass an unprecedented $2 trillion economic stimulus bill, the third in a series of stimulus packages* designed to counteract the current economic downturn caused by the COVID-19 pandemic. If the bill passes both houses of Congress and is signed by the President, much-needed financial relief will soon be available for individuals, families, and small businesses. Although details of the bill have yet to be finalized, analysts predict the relief package will include the following:
Small Business Loans. Federally guaranteed emergency loans from local banks to qualifying small businesses. Notably, the bill may relax or waive repayment requirements when small businesses use the loaned funds for rent, payroll, or other specified expenses.
Unemployment Benefits. Financial support and greater unemployment benefits to all unemployed individuals (not just to those laid off because of COVID-19). The expansion of the program is predicted to include a $600 weekly payment from the federal government to unemployed individuals, the extension of jobless insurance by 13 weeks, and the extension of coverage to certain individuals previously not covered by unemployment.
Direct Payments to Taxpayers. A $1200 direct payment to each taxpayer earning less than $75,000 per year. The payment amount will decrease as the taxpayer’s income exceeds $75,000 per year and entirely phase out for taxpayers earning more than $99,000 per year. The predicted bill would additionally provide families $500 per dependent child.
Medical Support. Additional financial support to hospitals and medical practitioners facing equipment and supply shortages due to addressing COVID-19.
The status and the content of the bill is changing by the hour. Please check-in regularly to stay informed on the effect of this bill on you or your small business, as Congress proceeds to vote on this bill.
*The first package was the March 6 $8.3 billion Emergency Health stimulus bill which was designed to promote the production of crucial medical equipment and supplies, and the second was the March 18 Families First Coronavirus Response Act which you can read about here.