Understanding the Stimulus Package

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)  

Videos & Slides

• Danling Jiang, Professor of Finance: Video; Slides on Main Street Lending Program.
• Danling Jiang, Professor of Finance: Video; Slides on Stimulus Aid Package
• Danling Jiang, Professor of Finance: Slides on Paycheck Protection Program
• Danling Jiang, Professor of Finance: Slides on Finding All the Money After Job Loss to the Coronavirus Pandemic
• Danling Jiang, Professor of Finance: Website: Long Island Small Business Survival Guide
• (New York) SBA Economic Injury Disaster Loan Basics Webinar (3/25)
• (New York) SBA Economic Injury Disaster Loan Process Basic Overview
• (Virginia) SBA Economic Injury Disaster Loans (EIDL) (3/23)
• Families First Coronavirus Response Act Means for Employers (3/25)

CNBC Summary  

• Who’s eligible? Businesses and 501(c)3s with fewer than 500 employees; Those who are self-employed and independent contractors; Must have been in business since Feb. 15 
• What’s available? Borrowers can borrow 2.5X their monthly payroll expenses, up to $10M; Max interest rate of 4% with 10-year term 
• How can the loans be used? Qualified payroll expenses; Interest on mortgage and other debt obligations; Rent; Utilities 
• Loan forgiveness: Depends on expenses, layoffs; Staffing based on Feb. 15 staffing levels 

WSJ Summary 

• $349 billion for Small Business to keep Americans on payrolls; made available by private lenders and guaranteed by the Small Business Administration (SBA) 
• $500 billion Corporate Aid to backstop Federal Reserve loans 
• $221 billion Tax Benefits that allow businesses to defer payroll taxes 
• $32 billion Airline Wages for grants towards covering wages of air carriers 
• $340 billion Supplemental Spending for health-care providers, medical equipment, Medicare reimbursement, telehealth, low-income patients and hospitals treating victims of the virus 

Paycheck Protection Program 
This program gives small businesses access to short-term cash flow assistance aimed to help deal with the immediate global impact caused by the COVID-19 pandemic. These loans are made by approved lenders, certified by the SBA (Small Business Administration) and are guaranteed by the federal government of the United States.