The White House and Senate on early Wednesday morning reached a massive $2 trillion stimulus deal to help companies and the country combat the economic impact of the coronavirus outbreak. The stimulus deal, said to be the largest economic stimulus package in the history of the United States was announced by Senators Mitch McConnell and Chuck Schumer.
"At last we have a deal," said Senate Majority Leader Mitch from the floor of the senate. Stocks, however, were mixed after market opened a day after Wall Stress recorded its best jump since 1933. That said, the stimulus package includes a range of provisions to help the economy bounce back. Although, parts of the final bill were still being written on early Wednesday, here what the deal is reportedly to have for the businesses community.
Airlines may breathe easy
The deal, reportedly, has $50 billion and $8 billion for passenger and cargo airlines, respectively. Also, $17 billion is likely to be allocated to firms that are considered important to national security. The aviation industry has been hit hard by the coronavirus outbreak and has been one of the major casualties owing to cancellations of thousands of flights and bookings. US President Donald Trump last week had said, "We are going to back the airlines, 100%." Also, it was reported on Tuesday that the government was in the final leg of negations for a package to bail out the airline companies.
Other direct casualties to get help
Much like airline companies, the cruise and the hotel and restaurant industry too have been bleeding following the coronavirus outbreak and the lockdown by the different governments. Per the deal, hundreds of billions dollars in loans is reportedly going to be available in the coming weeks and months.
Yahoo Finance last week had reported that $50 billion was set aside for Small Business Administration during the previous stimulus efforts. Small businesses too are likely to get cash assistance in the form of loans over the next few weeks and months.
Millions going to be benefited
The stimulus, which was described by majority leaders as "a war-time level of investment for our nation," has reportedly tried to cover all Americans. According to CNN, over the past 24 hours, a lot has been debated and worked on, with $250 billion set aside for direct payments to individual and families. Moreover, another $250 billion is likely to be allocated for unemployment insurance benefits and a whopping $500 billion in loans for companies in distress.
For individuals who earn $75,000 or less in adjusted gross income, would be given direct payment of $1,200 each, according to the plan. Also, married couples, who earn up to $150,000 in adjusted gross income, will be given $2,400 and an additional $500 if with a child. The deal also includes massive cash infusion into the healthcare industry. Hospitals, healthcare providers and community health centers are likely to receive more than $130 billion to fight the pandemic. State and localities will be receiving another $150 billion.