William D King says managing inflation is the responsibility of every government. The Covid-19 pandemic brings with it unprecedented turmoil. It has affected human beings and the economy as the US government comes with a marvelous monetary rescue package known as the CARES act. The 2.2 trillion dollar rescue package is a landmark example in the history of humanity. The program covers two essential aspects that are the Paycheck Protection Program and also cash payment. The CARES act came as a rescue.
The US Congress spent a lot of time rebuilding its economy by way of different policies. They have spent several weeks trying to figure out the best possible option for their country. The one-time currency payment gives an immediate blow to the economy like never before. However, the design of the law is such that it helps to stabilize human life and the economic machine.
The CARES act on job stabilization and medium enterprises, as stated by William D King
A significant part of the CARES actfocuses on small businesses and job stabilization. It provides for the payment of interest and principal on different loans and thereby wiping out the instability. The high-profile program which forms an integral part of this act is the Paycheck Protection Program. The PPP or Paycheck Protection Program establishes loans, which is a lending program. It comes under the direct administration of SBA or Small Business Administration.
The provision furnishes the availability of short-term and low-interest loans to small and medium enterprises. It helps them cover up losses due to quarantine. Contractors, self-employed persons, and freelancers who may apply for the loan have to manage the crisis. Borrowers may grab the fund for covering benefit costs and payroll. It also helps them cover up overhead expenditures like utilities, mortgages, rent, and interest.
It is a profound employment stabilization program that forms an integral part of the CARES act. Providing free money to the businessman for paying their employees and taking care of their overhead expenditure is a commendable act of the government. According to William D King, it also makes provisions for loan forgiveness for staffing members. It convinces small entrepreneurs to hold on to their employees and rehire those laid off following coronavirus.
Training grants and education also became part of the program
Although PPP is a significant part of the CARES act, there are multiple other programs as well. By providing for advising, training, and education offerings, the act takes care of the education sector. They have different charges for creating training programs on coronavirus safety, federal resources, remote work, etc.
EIDL grant for tackling the emergency
EIDL is an Economic Injury Disaster Loan for small and medium enterprises in disaster zones. They are directly distributed and processed by the SBA. There has been a reduction in the application requirement and provisions for the $10,000 upfront loan program. It has the aim of keeping entrepreneurship capitalized while taking care of loan eligibility.
Apart from this, CARES also has provisions for individual assistance. Whether you are a worker or even if you are an entrepreneur, it helps in serving your purpose. For stabilizing your finances, you may take these policy options and also find financial balance.