2 Trillion Dollar CARES Act Passed by Congress
If you have been reading the headlines lately you are most likely aware that there is a lot of anxiety in the economy at the moment. Thankfully for the citizens 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 combination of multiple economic stimulus packages that have been created to help small businesses and everyday Americans.
What are small businesses going to get?
It is pleasant to talk about how there is 2.2 trillion dollars worth of aid integrated in the plan as a whole but that does you no good if you are unaware of how to access these benefits. The majority of the advantages will come through either the Treasury directly or the Small Business Administration.
How does the Paycheck Protection Program help?
Due to the lockdown, there are large numbers of businesses that have been compelled to close their doors. Many of these businesses were not ready for an interruption in economic activity for quite this long. This has led to lots of them being forced to let their personnel go. The PPP is a grant program that small businesses with under five hundred employees can have the government pay the paychecks of their employees for them for a short time period.
Obtaining the Small Business Disaster Loans
There are a bunch of businesses that have suffered economic damage as a result of the shutdown. The Small Business Administration has been offering forgivable loans for companies that become eligible.
What are the Expanded Unemployment Benefits?
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 state of the Program?
It is tricky 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 money within two weeks. For now, the economic stimulus does seem to have averted a complete economic breakdown though.