WHAT'S INSIDE THE $2 TRILLION FEDERAL CORONAVIRUS STIMULUS PACKAGE?
EXPECTED TO BE PASSED OVER THE WEEKEND, MONDAY
The U.S. Senate passed a roughly $2 trillion coronavirus response bill intended to expedite relief across the nation's economy. This is the third such aid package from Congress and is meant to keep businesses and individuals afloat during this unprecedented time.
It is anticipated the U.S. House of Representatives will vote today (Friday) or tomorrow on this bill. If passed, it will go to the president for his signature.
Small Business Benefits
The bill includes:
- $10 billion for emergency micro-grants of up to $10,000 for small businesses;
- $350 billion forgivable loan program through the U.S. Small Business Administration for companies with 500 or fewer employees;
- $17 billion to cover six months of payments for small businesses already accessing SBA loans;
- Changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term.
The bill establishes a
fully refundable tax credit
for businesses of
that are closed or distressed to help them keep workers on the payroll. The goal is to get those employees re-hired or put on paid furlough to ensure they have jobs to which they may return. The credit covers up to 50 percent of payroll on the first $10,000 of compensation, including health benefits, for each employee.
For employers with
more than 100 full-time employees,
the credit is for wages paid to employees when they are not providing services because of the coronavirus. Eligible employers with
100 or fewer full-time employees could use the deduction even if they aren't closed.
The SBA will deputize local banks to help administer these SBA funds to local businesses.
Eligible and interested companies should contact their current local bank to inquire as to how they can apply for the low-interest Economic Injury Disaster Loan.
More information will be provided from the Chamber in the days to come as this bill makes its way through the House of Representatives.