On February 5, the Senate approved Biden’s $1.9 Trillion Stimulus with some changes. Once the House approves these tweaks, work will start to write the legislative flesh to enact Biden’s plan. But what does this new package include?
- Small business aid
- A new round of stimulus checks
- A boost to the federal unemployment benefit
- An increase to the federal minimum wage
- Proposals to improve racial equity
- Aid to states, communities, and schools
- An extension to the eviction moratorium
- Expansion of vaccines
- More provisions to help struggling Americans
Help for small businesses: more paycheck protection
The president’s proposal includes $15 billion in grants for businesses affected by COVID and $35 billion for financing programs aimed at small businesses.
The relief grant is targeted at “real small businesses” with 500 employees or less.
His goal is to help smaller businesses that weren’t able to access or receive the PPP during the first and second rounds.
As of right now, there’s no update on an official PPP round 3 application.
A Third Stimulus Check
President Joe Biden proposes a third stimulus check of $1,400 (this includes a check per child) only for people making no more than $50,000 (or married couples making no more than $100,000). That way the people who need it the most will receive the money that will help them.
Unfortunately, it seems like Democrats made changes to prevent undocumented immigrants from receiving these checks.
Minimum Wage Increase
Maybe what is the most unexpected part of his plan is that he reintroduced the Raise the Wage Act so that the federal minimum wage goes up to $15. Will this actually make it to the final bill? It’s unsure at the moment, the Senate’s most recent proposal didn’t include it.
But if this makes it into the package, how will it work?
Well, the raise won’t happen overnight, the plan is to incrementally increase it so it reaches $15 by 2025.
As part of his American Rescue Plan, Biden proposed to extend the unemployment benefits created in the $900 billion COVID-19 relief package from December 2020.
His $1.9 trillion relief package plans to extend the benefits until September (probably September 25) and increase the weekly federal bonus by $100 (from $300 to $400). If this benefit will be retroactive is still yet to be seen.
This $400 benefit would start after March 14, when the current ones expire.
Racial equity: how will Joe Biden’s policies impact LOBs?
Biden plans to do good by Black and Brown communities by allocating $10 billion to state and local venture capital programs. He’s also aiming to expand the Community Reinvestment Act and help Black and Brown communities access low-interest business loans ($100 billion). He has also proposed to increase the role of CDFIs to further serve these communities.
So far, Biden’s racial equity executive orders tackle:
- Fair housing
- Ending the use of private prisons
- Commitment to tribunal sovereignty and consultation
- Combating xenophobia
What’s the timeline for this package?
Public officials are tracking to release this package by March.
The reconciliation bill is set to be released by February 22, 2021.
The information you need
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