After the deadline was met on Tuesday (June 30) for businesses to apply for financial help from the Paycheck Protection Program, the House wanted to extend it a second time. The new deadline is August 8. There is still about $130 billion left in the program for businesses to access.
The money is available on a completely forgivable basis if it is used according to the rules: at least 60 percent of it must be used for salary and the rest needs to be used for regular business expenses such as rent and utilities. After quickly being pushed through the Senate, Congress expects President Trump to sign it.
President Trump Wants Larger Stimulus Package for Individuals
When asked about the possibility of a second personal stimulus package, President Trump said that he would like the amount to be larger than what the Democrats wanted. The Senate is going to bring up the matter of a second package (Phase Four) later this month, but the GOP will have to be convinced of its necessity. Perhaps the rapidly spreading coronavirus which is out of control in some places and the new shutdowns will help make it happen. Senate Majority Leader Mitch McConnell said that it should be passed this month.
One thing that cannot be expected to be included in the new package, according to McConnell, is the extra $600 per month for those on unemployment. Although the Democrats want it to be included, the Republican majority in the Senate wants to exclude it. The primary reason they are looking to exclude it is that it is believed to encourage people to stay unemployed since they make more money with it than they would at work.
Coronavirus Spreading Faster Than Ever
Instead of slowing down the spread of coronavirus and making it safe for people to open their businesses, the exact opposite has been happening. In one day, there have been more than 52,000 new cases. The number of cases has risen in as many as 40 states and almost half of the states are reversing their plans on reopening.
More People Are Back to Work
Good news came from the U.S. jobs report, which indicated that as many as 4.8 million jobs were added in June – which was higher than expected. This means that the unemployment rate has dropped to 11.1% in the last month. After the jobs report came out, the stock market rose, enabling NASDAQ to hit a new all-time high.
American Companies Warned Against Maintaining Supply Chains with China
The United States is taking stronger action against abuses in human rights against Beijing. This involves China’s declaration of national security laws now operating in Hong Kong and the imprisonment and mistreatment of Uighurs and other minority groups in the country – which involves more than one million people. The U.S. State Department has warned American companies, including Walmart, Amazon, and Apple, that they are taking a risk by maintaining that country as a large part of their supply chains. Continuing to deal with China may result in future economic and legal risks, as well as the possibility of damage their reputations.
After reporting the better than expected production and delivery of new electric cars, Tesla stock rose to a new record of over $1,200 per share. Instead of the 72,000 vehicles that were predicted, the company delivered over 90,600 vehicles.