We don’t need statistics or an annual report to tell us that everyone has been impacted by the pandemic. Also, unfortunately, mostly in a negative way.
The big question of the year 2020 has been, how are you responding to the virus? Individuals are responding with fear and/or anxiety, hospitals are responding via work ethic and heart, businesses are responding by searching for funding, and the government is responding with the Stimulus Bill.
What is the stimulus bill?
The stimulus bill, also known as the stimulus package, is made up of the Coronavirus Aid, Relief, and Economic Security Act (CARES) and provides an estimated $2 trillion [package] to battle the harmful effects of the COVID-19 pandemic, according to the NCSL.
What was the reason for creating Stimulus Bill?
Due to the pandemic, employees have not got permission to return to work. Therefore unemployment is rising. Businesses are struggling to stay open and are thus seeking funding. Education and health-related companies are drastically changing as they give their all for our education, health, and well-being.
New York Times writers Emily Cochrane and Sheryl Gay Stolberg explain the measure is unparalleled in its scope and size, touching on every aspect of the country in an effort to send help to desperate Americans, provide aid to hospitals combating the disease, and bolster an economy forced to slow or shut down altogether to minimize the spread of the pandemic.
Advantages for your business
The Stimulus Bill allocates funding to 7 different groups, all of which have been impacted by the coronavirus. Here are the groups broken down by their estimates, all totaling $2 trillion, according to NPR, or National Public Radio:
- Individuals: $560 billion
- Big corporations: $500 billion
- Small businesses: $377 billion
- State and local governments: $339.8 billion
- Public health: $153.5 billion
- Safety net: $26 billion
As you can see, small businesses are receiving a large allocation of this funding, and this was only in a round of funding. It is because of the updating of bills and allocation of new, additional funds for small businesses.
In an article by the Wall Street Journal, What’s in the New Coronavirus Stimulus Bill, writers Andrew Duehren and Amara Omeokwe explain, the bill refills two exhausted funds for small business aid: the Paycheck Protection Program and the Economic Injury Disaster Loan program.
The bill puts about $310 billion more toward the PPP, which Congress initially gave $350 billion when it was created in March. Funding for the PPP loans, which one can forgive if the companies keep employees on the payroll, quickly ran out. The new bill is also tweaking the fund, amid complaints that some mom-and-pop businesses were crowded out of the fund in favor of larger businesses with existing relationships with banks, say writers Deuhren and Omeokwe of WSJ.
Stimulus Bill Beneficial for Businesses
It is clear that this Stimulus Bill’s creation is with small businesses’ confidence and capability in mind. Due to this, businesses are now able to get back on their feet as they look forward to 2021.
At the end of the day, we know that the benefits potentially reaped from this Bill will not be everlasting. Even now, with funding, small businesses are still searching for the best success strategies and best methods for gaining working capital.
We can be that solution for you. If your business is in need of funding, we have a team of experts waiting to help you. We have seen a lot of small businesses succeed during this crisis. Also, we would love to support your efforts and success as well. At REIL Capital, we offer you various loan options and further customize them to fit your needs.
Ready to kick this pandemic struggle to the curb? Give us a call today!
