Coronavirus Government Response Update—Small Business Loans above $2M Will Be AuditedApril 29, 2020
Welcome to the Coronavirus Government Response Update. This information is intended to keep ISSA members up to date on fast-moving government affairs related to the COVID-19 pandemic, as well as other public policy issues important to the cleaning industry. Today’s update touches on audits for small business coronavirus loans above US$2 million, workers reluctant to go back to work, the reopening of some California businesses, and more.
Mnuchin: Small Business Coronavirus Loans above $2M Will Be Audited
Treasury Secretary Steven Mnuchin said that the Trump administration will audit every company that receives an emergency coronavirus loan from the Small Business Administration (SBA) greater than $2 million. Mnuchin said that any business that receives more than $2 million from the SBA’s Paycheck Protection Program will be scrutinized by the agency to assess whether it truly needed the funding, which is meant for small businesses struggling to retain workers.
Furloughed Workers Don’t Want to Return to Their Jobs
An unexpected consequence of the multitrillion dollar stimulus package is that some workers are asking to be laid off or are reluctant to go back to work after being furloughed. In an effort to help people financially cope with their job losses in the midst of a pandemic, the federal government—through the Coronavirus Aid, Relief and Economic Security Act—is providing an extra $600 per week in unemployment benefits. This amount is in addition to what the states already pay, which is in the range of $200 to $300 per week.
Some California Businesses Could Reopen Within Weeks
California businesses seen as presenting less risk of spreading the coronavirus could open in the near future under a plan Gov. Gavin Newsom unveiled, the first of what he suggested were several slow steps toward easing the statewide shutdown order. “We believe we are weeks, not months, away from making meaningful modifications” in the current restrictions, Newsom said. But Newsom’s announcement of a four-phase plan did not come with a guaranteed timetable.
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