Markets Rebound After Stimulus Package deal Is Handed: Dwell Enterprise Updates

stimulus

Recognition…Ringo Chiu / Agence France-Presse – Getty Images

The pandemic relief bill includes $ 285 billion through March 31 for additional credit under the Paycheck Protection Program – the government’s small business program created under the CARES Act – while removing the restriction that put more than $ 100 billion in the summer. Dollars not spent. Stacy Cowley of the New York Times shares what we know based on the outline of the law that circulated among Congressional officials on Monday:

  • The new credit relief bill provides a second cash infusion for those meeting stricter conditions: Borrowers with fewer than 300 employees who have seen a 25 percent year-over-year revenue decline in at least one quarter could apply for an additional loan of up to $ 2 million Qualify dollars.

  • Hotels and food service companies are eligible for larger loans this time, up to 3.5 times their average monthly payroll. Other borrowers, in turn, would be limited to 2.5 times their payroll.

  • Listed companies will not be eligible for the new loans, removing a provision that caused public outcry as restaurant chains, software companies and drug makers, among others, received taxpayer-funded loans.

  • The new bill expands the list of expenses that could be paid for with a loan, which was previously mainly limited to payroll, rent, and utilities. Companies could now use the money to buy supplies from their suppliers, buy protective equipment for their employees, or repair property damage “due to public disruption,” according to a summary by the House Small Business Committee.

  • The plan would allow business owners who received tax-free loans under the program to claim deductions for expenses they paid for with loan proceeds.

  • The bill would also provide the Small Business Administration with $ 50 million for audits and other anti-fraud measures in the program, which was a significant problem in the first round of funding.

  • The bill contains other relief measures that are not specifically part of the paycheck protection program but could still help many small businesses. This includes a $ 15 billion grant fund for closed theaters, museums, zoos, and venues for live events, and $ 12 billion for community development financial institutions that provide loans and grants to people and communities who often don’t are able to get traditional banks to do business with them.

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