Earlier this morning, the White House and Congress struck a deal which amounts to the largest relief package in American history.
The aim of the package is to deliver support to businesses that have been forced to shut their doors while additionally providing support to American families affected by the rapid spread of COVID-19. Lawmakers are awaiting a final text of the bill ahead of a vote that will be hold later today.
Here's what we know so far (but be aware that the bill will still be tweaked in the next 24 hours and that more interpretations will occur over the weekend):
For businesses:
- The bill provides a tax credit for companies who retain employees even if they’ve been mandated to close or seen a significant drop-off in business.
- Any company receiving a government loan would be subject to a ban on stock buybacks through the term of the loan plus one additional year.
- They also would have to limit executive bonuses and take steps to protect workers. The Treasury Department would have to disclose the terms of loans or other aid to companies and a new Treasury inspector general would oversee the lending program.
For individuals:
- The bill provides direct payments to lower- and middle-income Americans of $1,200 for each adult, as well as $500 for each child.
- Unemployment insurance would be extended to four months, the benefits would be bolstered by $600 weekly and eligibility would be expanded to cover more workers.
Source: Bloomberg
If you're feeling overwhelmed by this bill, that's okay — we are too. And that's why we've invited NHADA Partners Bart Haag and Matthew J. Pore who are both CPAs and Principals at Albin Randall & Bennett to conduct a webinar on Monday, March 30th to discuss the relief package.
We will be unpacking the $2 trillion package to show the motor vehicle industry how it can benefit their businesses and their employees. We'll walk through the various provisions, deadlines, benefits, and pitfalls.
