The Second Economic Stimulus Package – Who Will Get Money From It?

As Congressional discussions for the second round of the economic stimulus package continues, some features look like they are going to stay in the package. It has now passed the Senate by a unanimous vote and has been handed over to the House where it will no doubt be debated further and changed or amended. President Trump has already said that he will sign it once the bill moves to his desk.

Although some changes may yet be made to the bill, here are the basics. The bill so far has designated $484 billion in funds for pandemic relief. These are some of the things that are in the package now.

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More Help for Businesses

The Paycheck Protection Program in the initial stimulus package was created to help small businesses be able to keep their employees on the payroll even if they were not working. So many businesses applied for business loans that the $349 billion designated to the fund ran out of money in just two weeks. The new stimulus package will add another $320 billion to that fund.

The goal this time is to help even smaller businesses than those that benefited from the funds in the last round. Many smaller banks did not get any money to distribute, which meant that many people in need had nowhere to go to apply for the loan. The new program designates $60 billion to go to small banks – but it is realized already that it may not be enough.

The $60 billion is supposed to go to rural areas that will enable mom and pop stores to be able to apply. It also rules out large companies from applying. Minorities and people without bank accounts should also be able to tap into some of this money.

New Groups Targeted for Help

This round of money will designate funds to help some important groups that were left out in the first package. $75 billion will be designated for hospitals, health care workers, and to provide more testing for all.

Money for Testing

Up until it was debated in the Senate this go-round, the White House has said that it was up to the various states to provide money for testing. Now, testing has been added to the bill with $25 billion designated for every aspect of it including the research and development, manufacturing, buying, and to enable widespread testing. The money will go to both federal and state governments.

The Economic Injury Disaster Loan

Another part of the CARES Act included the funding of a program by the Small Business Association called the Economic Injury Disaster Loan. It enabled businesses to apply and get up to $10,000 in the form of immediate cash as a grant. It was for businesses that had a temporary loss of income, but the program has run out or money. The new bill designates another $60 billion to go into this program.

Along with the new bill possibly being passed on Thursday in the House, and President Trump saying he will sign it, other coronavirus news has shown up in the form of a computer model that reveals the best time to open-up states. The model, which was created by the University of Washington’s Institute for Health Metrics and Evaluation, shows that most states will only be able to safely open for business weeks later than earlier thought possible. Whether or not state governments will see this as a valid or worthwhile model will be up to each governor and their advisors.

About Mike Valles

2 comments

  1. Edward R. Ziegler

    Bank of America took my application because it was shamed into doing so. Bank of American will give out loans first to existing debtors hoping the PPP funds might help those businesses that already owe it money to survive. I am a 20-year mortgage and business customer with perfect repayment and credit histories at B of A and otherwise but was successful enough to not have borrowed from them for my business; so I have been shut out and ignored by PPP. The bank does not even answer the telephone.

    I have nine employees—several with me for over 20 years each. I can function with one or two; and it might end up that way partially because of PPP’s flaws; and partly because I have no incentive (and not much need) to participate in a business sector that is unfair and prejudiced due to an Act of Congress.

    The major flaw in the PPP is the limited amount of funds provided and provided on a patchwork basis. Social Security does not pay out on a first come, first served basis—everyone who qualifies gets a check. A fund like this, to be fair and ultimately to work, must provide funds for everyone who qualifies. Anything less is just throwing taxpayer money where the big banks and lobbyists say it will go and huge political and divisive ill-will is generated further tearing us apart at this critical time rather than providing fairly for all businesses on a level playing field. If one business gets the PPP funds; all who qualify must. Every incumbent sitting in the Capitol (when they finally did go to work like the doctors, nurses, and bus drivers did every day) should be kicked out on their rear ends; and unfortunately, this also is affecting the President’s re-election—the saving grace on that (if you support the President) is the opponents have been unable to put forward a reasonable alternative. This is a lesson for all of us when pulling the lever at the ballot box and voting for inexperienced folks with no business experience or even common sense.

    • Wells Fargo screwed me over. I applied through Lendio.com. Haven’t received money yet, but I have received an SBA reservation number, which means that money is reserved for my application. Good luck with all.

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