The Senate unanimously passed the most important piece of legislation so far in 2020 following our unprecedented reaction to COVID-19. The House of Representatives has followed suit and soon, Americans will receive incredibly important support from the government.
This is a $2 trillion investment into the country. According to Mitch McConnell, this is a wartime level of investment to prop up our economy and the American People.
The bill guarantees $1,200 per adult and $500 per minor for people making less than $75,000 per year. The bill also expands unemployment insurance to cover previously ineligible people like the self-employed and independent contractors.
Checks should start mailing starting next week as the government’s number one concern right now is ensuring the American people are taken care of. The bill received bipartisan support, but not before the initial proposal was slammed by Democrats who called it a “slush fund”. After adding some congressional oversight, both sides negotiated to ensure the bill would pass and the country could receive some much-needed support.
Airlines received a $46 billion provision to keep them operational. There was a lot of criticism about this part of the bill because many people in the country feel that companies should be built to sustain themselves in times of trouble. Clearly, airlines are companies that carry a lot of overhead and debt fo the most part and become easy targets for unexpected economic shakeups like the one we’re experiencing right now.
There will also be billions of dollars earmarked for businesses across the country. $50 billion have been set aside to the Small Business Administration (SBA) to administer loans to companies. This part of the bill is unique in that these funds will not come from the government, but rather, will be administered by banks and financial institutions in the form of loans.
These loans will have certain provisions, like maintaining employees on payroll, office rent, and certain business overhead that will not have to be repeated. They function as a hybrid between a loan and a government grant where the repayment is dependent on the purpose for the funds.
We will continue to offer news about this as things develop.