Stimulus

Credit score…Ringo Chiu/Agence France-Presse — Getty Photographs

The pandemic support invoice incorporates $285 billion for added loans beneath the Paycheck Safety Program — the federal government’s small-business program created beneath the CARES Act — by March 31, whereas removing the restriction that left greater than $100 billion unspent over the summer season. The New York Occasions’s Stacy Cowley experiences on what we all know based mostly on outlines of the invoice circulating amongst congressional officers on Monday:

  • The brand new aid invoice affords a second money infusion for many who meet stricter phrases: Debtors with fewer than 300 staff that had a 25 % drop in gross sales from a 12 months earlier in no less than one quarter might qualify for a further mortgage of as much as $2 million.

  • Inns and food-service companies are eligible for greater loans this time, as much as 3.5 occasions their common month-to-month payroll. Different debtors would once more be restricted to 2.5 occasions their payroll.

  • Publicly traded corporations are ineligible for the brand new loans, eliminating a provision that provoked a public outcry as deep-pocketed restaurant chains, software program corporations and drug makers, amongst others, collected taxpayer-funded loans.

  • The brand new invoice expands the listing of bills {that a} mortgage could possibly be used to pay, which beforehand had been restricted principally to payroll, hire and utilities. Companies might now use the cash to purchase provides from their distributors, purchase protecting gear for his or her workers or repair property injury “attributable to public disturbances,” based on a Home Small Enterprise Committee abstract.

  • The plan would enable enterprise house owners who acquired loans in this system, that are tax-free, to say deductions for bills they paid for with mortgage proceeds.

  • The invoice would additionally allocate $50 million to the Small Enterprise Administration for audits and different efforts to handle fraud in this system, which was a major downside within the first spherical of funding.

  • The invoice consists of different support measures that aren’t particularly a part of the Paycheck Safety Program however might nonetheless assist many small companies. These embody a $15 billion grant fund for closed theaters, museums, zoos and stay occasion venues, and $12 billion for Neighborhood Growth Monetary Establishments, which make loans and grants to folks and communities which might be typically unable to get conventional banks to do enterprise with them.



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