How Will the Senate Stimulus Package Affect Businesses and Unemployment?
Our Gwinnett County corporate law attorneys explain how the coronavirus-related stimulus package passed by the Senate may affect businesses and employees.
The coronavirus has dramatically changed daily life in Georgia and across the United States. As schools, businesses, and government agencies close in response to state mandates and the urging of public health officials, lawmakers have focused on allocating funds to where they are most needed. A massive stimulus package was recently passed by the Senate. Our Gwinnett County business law attorneys explain how it is likely to affect businesses and their employees.
Coronavirus Stimulus Packages
On March 26, 2020, the Wall Street Journal reported that after tense negotiations, the U.S. Senate had finally passed a record breaking stimulus package, considered ‘phase three’ in terms of government efforts in dealing with the coronavirus pandemic.
The first was an $8 billion spending bill that provided funding to researchers, grants to state and local governments, and money overseas in efforts to stop the worldwide pandemic. The second phase provided for free coronavirus testing, paid sick leave for certain workers, and expanded Medicaid funding.
The third and most recent action was a $2 trillion stimulus package aimed at offsetting losses suffered by individuals and businesses. It includes:
- $300 billion in direct cash payments for taxpayers making under $75,000, with $1,200 payment per adult and $500 per child;
- $500 billion in government loans to businesses, of which $17 billion is earmarked for companies important to national security and $29 billion for airlines;
- $367 billion in small business loans;
- $221 in deferred tax credits for businesses;
- $250 billion to expand unemployment benefits.
How the Latest Stimulus Package is Likely to Impact You
This latest stimulus package, phase three of the government’s response, is groundbreaking in terms of the amount and the number of people likely to be helped. Here is a more detailed look at what you can expect:
- For large businesses: Larger corporations eligible for the lending program face restrictions on both buybacks and dividends. Companies receiving the loans would also be prohibited from laying off workers for six months.
- For small businesses: These may be eligible for loans of up to $10 million per company or $100,000 in payroll per person. Repayment is deferred for six months to a year with no requirement for payback of portions spent on rent, utilities, or payroll.
- For unemployed workers: Benefit periods have been expanded to 39 weeks and eligibility guidelines are expanded to include gig and freelance workers. An additional $600 per week will be added to unemployment wages for a period of four months.
According to an April 1, 2020 CNBC News report, democrats are pushing for a fourth stimulus package to help individuals recover from the impacts of the coronavirus. For now, no further legislation is pending.
Contact Our Gwinnett County, GA Corporate Law Attorneys
At Zimmerman & Associates, we provide trusted legal guidance and aggressive representation for businesses and their employees. To find out how we can assist you, contact our Gwinnett County corporate law attorneys today.