If you’ve been reading the headlines lately you are likely aware that there is a lot of anxiety in the economy at the moment. Luckily for the citizens and businesses of our nation the government has cobbled together a response in record time in what has come to be known as the CARES act. This legislation is a combination of multiple economic stimulus packages that have been created to help small businesses and everyday Americans.
Small business can expect to see what?
It is nice to talk about how there is 2.2 trillion dollars worth of aid integrated in the program as a whole but that does you no good if you are not aware of how to access these benefits. The bulk of the advantages will come through either the Treasury directly or the Small Business Administration.
What are the benefits of the Paycheck Protection Program?
Due to the lockdown, there are large numbers of businesses that have been forced to close their doors. Many of these businesses were not ready for an disruption in economic activity for quite this long. This has led to lots of them being forced to let their employees go. The PPP is a grant program that small businesses with under 500 employees can have the government pay the paychecks of their employees for them for a limited time period.
What are Small Business Disaster Loans?
There are a bunch of businesses that have experienced economic damage as a result of the shutdown. The Small Business Administration has been giving forgivable loans for companies that qualify.
What do the Expanded Unemployment Benefits supply?
The federal government has vowed to give an extra $600 per week each week for up to 4 months on top of whatever their state’s normal unemployment benefits give to their citizens. Some people are actually making more at the moment being on unemployment than they made at their job.
What is the Current Status of the Program?
It is hard 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 consequences have been so far. The small business loan program was so widely used that it ran out of funds within 2 weeks. For now, the economic stimulus does seem to have eliminated a complete economic collapse though.