More detail regarding the funding provisions:
$377 billion loan program for small businesses The bulk of the program was $350 billion to provide eight weeks of cash-flow assistance to small businesses through 100 percent federally guaranteed loans to employers who maintain their payroll during the emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers to remain employed and aid in the recovery of small businesses and the economy after the crisis. $10 billion will be for the Small Business Administration (SBA) emergency grants of up to $10,000 to provide immediate relief for small business operating costs; $17 billion will be for SBA to cover 6 months of payments for small businesses with existing SBA loans. $500 billion lending fund for distressed businesses The provision increases the U.S. Treasury Department’s Exchange Stabilization Fund with $500 billion to aid large distressed firms, which the Federal Reserve can then leverage to inject approximately $4 trillion back into the marketplace in secured loans. An independent Inspector General and Congressional Oversight Panel will be established to oversee Treasury loans and investments – the loans must eventually be paid back following the coronavirus pandemic. Individuals (approx. $560 billion) Each qualifying adult will receive up to $1,200 in the form of a one-time rebate check. The full amount is available for individuals with incomes up to $75,000 per year ($150,000 for married couples) before phasing out and ending altogether for those earning more than $99,000 ($198,000 for joint filers with no children). Families will receive an additional $500 per child. Included in the $560 billion is $260 billion for expanded unemployment insurance. An additional $600 per week payment to each recipient of unemployment insurance for up to four months. Funding will be provided to pay the cost of the first week of unemployment benefits through December 31, 2020 for states that choose to pay recipients as soon as they become unemployed instead of waiting one week before the individual is eligible to receive benefits. Finally, the expansion of unemployment insurance will provide an additional 13 weeks of unemployment benefits through December 31, 2020 to help those who remain unemployed after weeks of state unemployment benefits are no longer available. Public Health $153.5 billion – provisions include: • Hospitals: $100 billion for hospitals responding to the coronavirus. • Community health centers: $1.32 billion in funding for community centers that provide health care services • Drug access: $11 billion for diagnostics, treatments and vaccines. • Centers for Disease Control and Prevention: $4.3 billion for CDC programs and response efforts • Veterans’ health care: $20 billion • Medicine and supplies: $16 billion for the Strategic National Stockpile to increase availability of equipment, including ventilators and masks. State and Local Governments $339.8 billion Included is $274 billion to help states fight COVID-19, with $150 billion in direct aid for those state and local governments that are running out of cash. Also included is $5 billion for Community Development Block Grants, $13 billion for K-12 schools, $14 billion for higher education and $5.3 billion for programs for children and families, including immediate assistance to child-care centers. Safety net $26 billion This includes $8.8 billion school meals, $450 million for food banks, and $15.5 billion for the Supplemental Food Nutrition Program (SNAP), in other words, food stamps. Student Loans • The Department of Education will automatically suspend payments on Direct student loans without penalty through Sep. 30, 2020. • Employers can provide up to $5,250 in tax-free student loan repayment benefits. That means an employer could contribute to loan payments and workers wouldn’t have to include that money as income.
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Center for Business and Economic Insight - CBEI EXTRA!
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