In the face of the novel coronavirus outbreak, the largest stimulus package in American history, a $2 trillion stimulus deal, has been announced.
The deal includes everything from checks to individuals, to half a trillion dollars for impacted businesses, and hundreds of billions of dollars allocated to fighting the current crisis and is predicted to pass quickly in the Senate.
Here’s a summary of what is expected to be included in the bill, aimed at the business community.
Hundreds of billions of dollars are expected to be available for the Small Business Administration in the coming weeks and months. It is reported to include $367 billion for the small business loan program as well as a $500 billion fund for a new lending agency.
Small businesses would go to a bank, who would then be able to process cash assistance through the SBA or a new program specifically set up to administer the funds.
There will be two components, the second of which will pertain to small businesses, administering loans that will need to be repaid. However, it appears that some of the loans may eventually be forgiven, based on certain circumstances.
This program is available to businesses of all sizes.
One condition associated with these loans is that the company cannot make stock buybacks for a year.