Stimulus Package Will Help Retailers, Small Banks, and Individuals

Stimulus Package Will Help Retailers, Small Banks, and Individuals

Restaurants, retailers, community banks, and the hotel industry will all benefit from the Senate’s $2 trillion federal stimulus package agreed to by the Senate and White House.

The bill is an effort to help multiple industries and individuals deal with the impact of the coronavirus outbreak. According to The New York Times, it includes a wide range of provisions that stand to assist specific industries and interest groups.

The stimulus package will provide single Americans with $1,200 and married couples with $2,400. Parents will receive an additional $500 for each child they have under 17. Those making more than $75,000 will receive lower amounts and those making more than $99,000 will not see any money.

Unemployment insurance was also boosted by the stimulus package. Workers who have lost their job due to the outbreak will receive an extra $600 a week for four months on top of their state benefits, which will be anywhere from $200 to $550 a week depending on the state.

The stimulus package also creates a new pandemic unemployment assistance program. The program will provide assistance to individuals who are unemployed, partially unemployed, or who are unable to work due to the virus and do not qualify for traditional benefits. Independent contractors, including those who work in the gig economy, and the self-employed fall under this plan.

The Treasury Department will provide $500 billion in loans, loan guarantees, and investments. Twenty-five billion dollars will go to aircraft carriers, $4 billion will go to cargo aircraft carriers and $17 billion will go to businesses working in national security. The rest, $454 billion, will provide loans to small businesses, states, and municipalities.
Those who take a loan will have restrictions tied to it. Any business receiving loans must retain 90% of its employees as of March 24 and the loans cannot last longer than five years.

Mid-sized businesses, defined as companies with between 500 and 10,000, employees and nonprofit organizations will not have to make payments on the loans for the first six months.

Student loan borrowers will see their monthly payments suspended through Sept. 30 without penalty, under the stimulus package. For-profit colleges will be able to keep federal loan money from students who drop out due to the coronavirus.

CNN is reporting the bill also states businesses that are owned or partly owned by “the President, the Vice President, the head of an Executive department, or a Member of Congress; and the spouse, child, son-in-law, or daughter-in-law” will be barred.

However, the Times reported that Trump may still be able to acquire benefits for his businesses under the stimulus package. The provision may not preclude funds from going to companies owned by the family of Trump’s son-in-law Jared Kushner.

Additionally, even large hotel chains like President Trump’s will be eligible for small-business loans, a provision that could potentially benefit his company to help to continue to pay wages for his employees. The Trump Organization could also benefit from the $15 billion change to the tax code won by restaurants and retailers.

The coronavirus outbreak, which hit the U.S. in late February, has resulted in hours being cut and layoffs. Even the Post Office is in danger of succumbing to its effects.