4 key measures in the COVID-19 stimulus package
Update: This post is part of our COVID-19 Resource Guide. We are publishing articles and Channel Mastery podcasts during the pandemic with tips, guides, and resources with the goal of helping your brand and business navigate the crisis. Visit our RESOURCE GUIDE>
COVID-19 stimulus package - what you need to know for your business
As our brands continue to pivot and evolve during this unprecedented time, it’s important to stay informed on what resources are available to each of our clients. Our team at Verde is here to outline the key measures you need to know about as a specialty brand, specialty retailer or small to medium-sized business. Be sure to check in with your local state and city officials for more details on stimulus efforts in your area.
Earlier this morning, the White House and Senate finalized an almost $2 trillion dollar stimulus package that will aid the economy during the COVID-19 pandemic. According to Senate Minority Leader Chuck Schumer, this bill is the “largest rescue package in American history.” With growing concerns across America about the state of the economy, job layoffs and healthcare professionals working in overdrive, the stimulus package is needed more than ever. While the sheer number associated with the package may have seemed unimaginable weeks ago, and despite a deeply polarized government, the stimulus package is predicted to be passed later on Wednesday afternoon. Below, the four key pillars of the bill.
Key Measures:
1. Emergency Small Business Loans
The bill will issue over $350 billion dollars to American small businesses. According to the New York Times, “Firms would not need to repay up to eight weeks of the loans if they refrain from laying off employees, or move by June to rehire employees they have already laid off. These low-interest loans can be used to cover up to 4 months of companies’ expenses, including salaries, rent, utilities and more.
Senate Majority Leader Mitch McConnell stated that the package’s goal is to “secure our economic foundation and stabilize key national industries to prevent as many layoffs as possible.” Additionally, the package will aim to provide more transparency of loans given to corporate America. More specifically, every loan document will be public and made available to congress.
For more information on small business loans and Coronavirus / COVID-19, visit SBA.gov.
2. Financial Assistance to Taxpaying Americans
The government will be issuing individual checks of $1,200 to all taxpaying Americans whose household incomes equate to $75,000 or less. From there, financial assistance will phase out and cap at those earning more than $99,000 annually. Additionally, families with children will also receive an additional $500 per child.
3. “Workers First” Unemployment Benefits
During the Senate press conference, Senate Minority Leader Chuck Schumer referred to this as “unemployment compensation on steroids.” What does that mean? That “every American worker who is laid off will have their salary remunerated by the federal government.”
Additionally, unemployment benefits will cover individuals who usually do not qualify, including furloughed employees, freelancers, and gig economy workers. Schumer stated that the package will increase the maximum unemployment benefit per person, by state, by $600 per week for four months.
While these efforts may not cover the fully-lost wages of those with a higher salary, it’s a huge step in stimulating the economy and making sure workers are able to pay their bills.
To check your state’s unemployment benefits, click here.
4. “Marshall Plan” for Hospitals and Healthcare workers
Lastly, the bill will aim to provide major relief to hospitals and healthcare providers. The government will be investing in new medicines and vaccines, as well as more equipment and masks to the healthcare workers on the front line. Overall, the package will invest $130 billion dollars into the healthcare system to help beat this pandemic.
FINAL THOUGHTS:
As always, the Verde team is here to help you navigate and pivot your business through these unprecedented times. With the help of the new Coronavirus COVID-19 stimulus package and our clients’ continuous ability to pivot to the times, we will get through this together.
We advise you and your brand to proceed with caution and weigh ALL the pros and cons when reviewing your options. Having a thorough understanding of the fine print, catches, and loopholes in the law is extremely important. It is time to be pragmatic and not panic.
See the rest of our resources on COVID-19 here and on Channel Mastery.