Tuesday, September 1, 2020

Financial loans for those affected by the Corona crisis in America

America's contributions to making financial loans to overcome the Corona crisis

The United States of America witnessed a large turnout of small and medium-sized American companies with applications for government-backed loans, amounting to more than $ 5.4 billion.

This comes with the entry into force of an essential item of the rescue plan to face the repercussions of the Corona crisis in America, which is the provision of urgent funds to support companies.

On Friday, the President of the Federal Small Business Authority in America, Juvia Carranza, announced that 17,503 companies with 500 employees or less have applied through local banks to obtain loans of about $ 5.4 billion.

US House of Representatives approves a $ 2.2 trillion stimulus package to confront Corona
And last Friday was to start applying for the money earmarked in large part to help companies pay their employees' salaries.

These loans, which could total as much as $ 350 billion, form an essential part of the $ 2.2 trillion bailout plan approved by Congress and signed by Trump on March 27.

Firms that get loans without firing their employees or re-employing laid-offs will later be able to cancel their debts.

This funding aims to provide aid to hundreds of thousands of restaurants, decorating salons and other small and medium-sized companies, as they can pay their rents and wages for a period of 8 weeks, which allows them to keep their employees during the closure period.
"If we run out of money, we have to go back to Congress to get more," US Treasury Secretary Stephen Mnuchin told Fox Business on Friday, adding that this is "a very great program supported by Democrats and Republicans."

Some large US banks, such as GB Morgan, indicated that they had encountered difficulties in implementing the program, and said that they were awaiting government guidance.

But Mnuchin said he is reaching out to top bank CEOs to get through the obstacles.

He added that family remittances will start within two weeks, not 3, as previously planned.

A family of 4 can receive up to $ 3,000, as part of the larger stimulus package.