What’s happening on Capitol Hill? How will stimulus benefit small business entrepreneurs?
Updated: Apr 22
Note: We will periodically update this as these proposals become law and guidelines are available.
We think this article from Axios is the best summary of what has been enacted and what is on the horizon by way of federal relief to small business entrepreneurs (SBEs). Essentially:
Phase 1 ($8.3B) was passed March 6th and provided extra funding primarily for health and science related agencies around testing and research. Also included was funding for the Small Business Administration (SBA) including $1 billion in loan subsidies for small businesses.
Phase 2 ($100B) was passed March 18th, and included free coronavirus testing, increased federal funds for Medicaid and food security programs, and, importantly for SBEs, instituted new mandates around paid sick and family leave. Our view on those aspects of the legislation are outlined here. The legislation also included increased unemployment insurance benefits that will be managed by your state labor department.
Phase 3 — this is what we want to draw your attention to — is a proposed $1 TRILLION stimulus injection. The White House proposal, delivered by Treasury Secretary Streven Muchin, is posted here. Note that the framework presented included $300 billion in business interruption loans to SBEs. This is what we want our customers watching carefully; be ready to take advantage of what would be meaningful support.