Policy Update: CARES Act and PPP Funding

The COVID-19 crisis has changed the dynamics of many policies and operations on a global scale. Many businesses have had to make extremely tough emergency decisions with normal operations and employment. Since the outbreak, companies have had to act quickly to combat business in affected communities. Here are a few major business policy changes.

PPP Funding: 

– The Small Business Administration wrapped up the PPP Aug. 8 after approving more than 5.2 million loans, totalling $525 billion. 

– The program, which changed several times after its April launch, offered businesses with fewer than 500 employees forgivable loans of up to $10 million, if 60% of the money went toward payroll. 

– PPP Funding kept people out of bankruptcies this summer. 

– Without additional federal relief, some experts project a flood of small-business bankruptcies this fall as the PPP money runs dry. 

– A second wave of closures is expected after Labor Day weekend. (Chicago Tribune)

– On September 1 House subcommittee report found that billions of dollars in PPP loans may have been diverted to “fraud, waste and abuse” through lack of oversight from the SBA and the Treasury. 

– A report issued by a House subcommittee says a lack of government oversight and accountability for the $600 billion-plus program “may have led to billions of dollars being diverted to fraud, waste and abuse, rather than reaching small businesses truly in need.” 

– The investigation by the House Select Subcommittee on the Coronavirus Crisis also found that over 600 loans, totalling $96 million, went to companies that were excluded from doing business with the government because of previous violations. And more than 350 loans, worth $195 million, were awarded to government contractors with “significant performance and integrity issues,” the report said. (Chicago Tribune)

 

CARES Act: 

– Original CARES Act has expired.

– When and if another stimulus check gets the green light, Treasury Secretary Steven Mnuchin stated that it would take about a week to mobilize the first payments. Speculations to some possible dates have been made, though the timeline keeps shifting. 

– An estimated 9 million Americans still haven’t received the first direct payment that began in mid-April. 

– The same is true for parents awaiting their $500 share for each dependent. They have until Sept. 30 to make a claim

– The IRS will have been sending the first stimulus payments from April 15 to approximately Dec. 31, 2020, a period of 260 days. A second stimulus check that’s authorized before the end of 2020 could still be paying out funds to qualified recipients through the first half of 2021. (Cnet)

Walker's Legacy

Walker's Legacy

Walker’s Legacy is a digital platform for the professional and entrepreneurial multicultural woman and exists to inspire, equip, and engage through thought-provoking content, educational programming, and a global community.

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