With a whopping amount of $2 trillion, it has been the largest rescue package in the USA history. The 2009 Recovery Act was of $831 billion, and then you have the CAA or the Consolidated Appropriations Act which was of $910 billion. The closest ever amount was of $1.9 trillion, which was part of the American Rescue Plan Act (ARPA) plan.
Now for the eligibility criteria by William D King:
The eligibility for some of the loans and the smaller business assistance was still up for some discretion of the Small business administration or Treasury. However, they came with some of the strict conditions and the Congress appointed an inspector general and oversight board for supervising and overseeing the entire administration.
The chosen law has actually allocated around $150 billion to the localities and states for battling out the pandemic. Moreover, according to William D King, another extra amount of $130 billion were designed for the healthcare system now.
Value and understanding of the Paycheck Protection Program:
The law has actually appropriated a whopping amount of $349 billion for supporting the efforts of smaller businesses for maintaining payroll and some of the other overhead expenses. It will cover the time zone during emergencies.
The goal of the state is always to keep the workers paid and employed during the emergency situation.
Due to the CARES Act, the Paycheck Protection program came into being. It is mainly targeted to be applied to nay non-profit organization, business, tribal businesses or veteran’s organizations, which have been under 500 employees.
It might have also been under the Small Business Administration standard, and will have fewer than 500 employees for every physical location, to cover the foodservice and the accommodation businesses.
The eligible businesses over here are going to receive a Smaller Business based Interruption Loan, which is of 2.5 times of their average monthly payroll value. The maximum upper limit will be of $10 million, and not more than that.
The areas to cover:
The loans are proficiently crafted to cover benefits, payrolls, salaries and the interest payments, utilities and rent. Even after that, the fees will get waived and the personal and collateral guarantees were not even required, like before. The payments were further deferred for a minimum of around 6 months to around 1 year. And the best part is that there won’t be any prepayment penalty added to the list.
The loan’s principle:
Even the principle of the loan will be forgiven for a total payroll cost, mortgage-based interest payments, utility payments, rent, alongside all the other added wages to be paid to tipped employees, which are made during 8-week period right from the origination. But, under this noteworthy Paycheck Protection plan, this amount will get reduced by a significant proportion of reduction within an average number of employees, during that said period.
Other than that, there has been an additional $10 billion targeted as the emergency grants and those were authorized for all the private non-profits, smaller businesses, agricultural co-ops, sole proprietorships and employee based firms.