Shares Get well After Stimulus Deal Is Handed: Dwell Market Updates


Recognition…Ringo Chiu / Agence France-Presse – Getty Images

The pandemic relief bill includes $ 285 billion through March 31 for additional credit under the Paycheck Protection Program – the government’s small business program created under the CARES Act – while removing the restriction that put more than $ 100 billion in the summer. Dollars not spent. Stacy Cowley of the New York Times shares what we know based on the outline of the law that circulated among Congressional officials on Monday:

  • The new credit relief bill provides a second cash infusion for those meeting stricter conditions: Borrowers with fewer than 300 employees who have seen a 25 percent year-over-year revenue decline in at least one quarter could apply for an additional loan of up to $ 2 million Qualify dollars.

  • Hotels and food service companies are eligible for larger loans this time, up to 3.5 times their average monthly payroll. Other borrowers, in turn, would be limited to 2.5 times their payroll.

  • Listed companies will not be eligible for the new loans, removing a provision that caused public outcry as restaurant chains, software companies and drug makers, among others, received taxpayer-funded loans.

  • The new bill expands the list of expenses that could be paid for with a loan, which was previously mainly limited to payroll, rent, and utilities. Companies could now use the money to buy supplies from their suppliers, buy protective equipment for their employees, or repair property damage “due to public disruption,” according to a summary by the House Small Business Committee.

  • The plan would allow business owners who received tax-free loans under the program to claim deductions for expenses they paid for with loan proceeds.

  • The bill would also provide the Small Business Administration with $ 50 million for audits and other anti-fraud measures in the program, which was a significant problem in the first round of funding.

  • The bill contains other relief measures that are not specifically part of the paycheck protection program but could still help many small businesses. This includes a $ 15 billion grant fund for closed theaters, museums, zoos, and venues for live events, and $ 12 billion for community development financial institutions that provide loans and grants to people and communities who often don’t are able to get traditional banks to do business with them.

Recognition…Robert Neubecker

Another dose of relief is finally on the way for the millions of Americans who have faced financial hardship from the pandemic.

Congress passed an economic bailout Monday evening that was supposed to give most Americans a round of $ 600 stimulus payments and in part restore the federal improved unemployment benefit, which offers $ 300 for 11 weeks. The agreement also includes provisions related to student loans, rental support, and medical bills.

However, how quickly the money gets into your pocket depends on several factors. Tara Siegel Bernard and Ron Lieber of the New York Times have compiled a list of answers to your questions about the pandemic, including:

  • Do I get another incentive payment?

  • When can I expect my check?

  • How does the aid package affect unemployment insurance?

  • What about relief for house bills like rent and mortgages?

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