The $2 trillion stimulus package has been signed by President Donald Trump.
And we know that the average American will get aid from the government, but what kind of aid with small businesses receive?
Rebecca Rose Woodland, litigator and legal analyst, joined TheStreet to break it down.
KATHERINE ROSS: We know that the two trillion dollar stimulus package is going to offer millions of Americans checks and will offer help to small businesses suffering from the Coronavirus pandemic. But what kind of help is being offered? Joining me today is Rebecca Rose Woodland, litigator and legal analyst. Rebecca break down the fine print for me. What is being offered for small businesses?
REBECCA ROSE WOODLAND: Well Katherine isn't this exciting that we have a stimulus apparently since Friday. It was signed into law and what we're seeing is an influx of money that is expected to come to these small businesses in the way of the stimulus package loans. Now I'm gonna lay it out a bit for you so I'm gonna refer to paper work. There's gonna be a loan amount that is 250% of one months yearly average of payroll, utilities, health insurance, rent etc. for small businesses. That loan maximum will be 10 million dollars. So the government is basically covering about two months of the business expenses for these small businesses. The loan will be forgiven if the small businesses do not lay off any employees before the Coronavirus to after. So in this period of time that people are not working if they're not laid off, they're kept on, then that loan will basically, seems like it turns into a grant from the government. And the businesses will need to then only pay off the four percent interest rate. Now as of this weekend, Mnuchin has announced that this money will go into the economy as soon as this week.
KATHERINE ROSS: Well besides for not being able to lay off anyone between now and the end of this pandemic for a lot of these small businesses, what other obligations do they face if they decide to take this government aid?
REBECCA ROSE WOODLAND:It looks, it looks as if the proof is and will be with your utilities, your bills, you'll have to prove that. So you'll have to go into a FDIC insured bank or lending institution and provide proof of your bills, proof of your expenses as a small business for the last year. And then going forward you'll receive the loan, you'll have to pay the four percent. And then at some point, which is not clear yet, you'll have to prove that you kept all the employees on. I'm not clear on the time frame yet as to how the proof moving forward, and what it will look like. But I think what we're looking at now is at least being able to get to an FDIC insured lending institution bank to present your proof. Get that loan then have it be at some point redeemed or have the government deem it as a loan that is now turned into a grant once you can prove your employees were kept on.
KATHERINE ROSS:Rebecca thank you so much for taking the time to join us today. And for more on the Coronavirus pandemic, please head on over to thestreet.com.