Posted on

A Second Economic Crisis for Biden, but a Different First Response

Mr. Biden has stressed that such aid will support increased consumer spending, but he and his team cast the goal of distributing the money in more human terms: to ensure as many Americans as possible avoid the scarring damage of homelessness, hunger and the virus itself.The Biden team and its allies are confident that, if they succeed, the economy will be poised for a roaring rebound. Other policymakers and forecasters, including Jerome H. Powell, the Federal Reserve chair, have predicted a swift rebound once the virus is under control.“The recovery from the Great Recession was delayed by years …

Read More

Posted on

Biden Outlines $1.9 Trillion Spending Package to Combat Virus and Downturn

WASHINGTON — President-elect Joseph R. Biden Jr. on Thursday proposed a $1.9 trillion rescue package to combat the economic downturn and the Covid-19 crisis, outlining the type of sweeping aid that Democrats have demanded for months and signaling the shift in the federal government’s pandemic response as Mr. Biden prepares to take office.The package includes more than $400 billion to combat the pandemic directly, including money to accelerate vaccine deployment and to safely reopen most schools within 100 days. Another $350 billion would help state and local governments bridge budget shortfalls, while the plan would also include $1,400 direct payments to individuals, more generous …

Read More

Posted on

Unemployment Claims Rise Sharply, Showing New Economic Pain

Ten months after the coronavirus crisis decimated the labor market, the resurgent pandemic keeps sending shock waves through the American economy.Though more than half of the 22 million jobs lost last spring have been regained, a new surge of infections has prompted shutdowns and layoffs that have hit the leisure and hospitality industries especially hard, dealing a setback to the recovery.The latest evidence came on Thursday when the Labor Department reported that initial claims for state unemployment benefits rose sharply last week, exceeding one million for the first time since July.Just days earlier, the government announced that employers …

Read More

Posted on

What’s in Biden’s $1.9 Trillion Stimulus Plan

The incoming Biden administration unveiled a $1.9 trillion stimulus plan on Thursday that offered a wish list of spending measures meant to help both people and the economy recover from the coronavirus pandemic, from state and local aid and more generous unemployment benefits to mass vaccinations.Below, we run through a few of the biggest provisions, how they would work and what they might mean for the United States economy as it struggles through a winter of surging coronavirus cases and partial state and local lockdowns.Let’s put that headline number in context.That $1.9 trillion figure is a lot of …

Read More

Posted on

Biden Set to Call for Big Spending on Stimulus and Vaccines

WASHINGTON — President-elect Joseph R. Biden Jr. on Thursday is expected to outline proposals for trillions of dollars in government spending to combat the coronavirus pandemic and its effects on the economy, with an initial focus on large-scale expansions of the nation’s vaccination program and virus testing capacity.Mr. Biden will detail his plans, which he and his economic team have been honing for weeks, in an evening speech in Delaware. The efforts will cover the pandemic, the economy, health care, education, climate change and other domestic priorities, Brian Deese, the incoming director of the National Economic Council, said at …

Read More

Posted on

PPP Loans Q&A: Who Qualifies for a Second Round?

The Paycheck Protection Program is back.Between April and August, the program distributed $523 billion in forgivable government-backed loans to 5.2 million small businesses to help them keep paying their workers through the pandemic’s economic devastation.Now it’s restarting, after Congress included $284 billion in new funding in the stimulus package it passed in December. Crucially, the program will give the hardest-hit businesses a chance at a second loan.P.P.P. 2.0 makes other changes, too, including to eligibility and to limits for some loan sizes. Here’s what you need to know.Who is eligible?The new funding is available …

Read More

Posted on

It Could Be a Great Year, if Your Business Survives Winter

For Ashlie Ordonez, owner of the Bare Bar Studio, a spa in Denver, vaccinations for the coronavirus can’t come soon enough. While she anticipates better days later this year, surviving until then will be a struggle, and she knows the next few months will be lean ones.“I sold my wedding ring so we could pay the bills and keep the doors open,” she said. “I’m sacrificing everything to make it through this pandemic.”Vinay Patel, who manages a chain of nine hotels in Maryland and Virginia, is looking even further out for a recovery: “2022 is when we’ …

Read More

Posted on

‘It Was a Joke’: Some Small Businesses Got $1 Relief Loans

Unprofitable and Out of LuckSole proprietorships are the most common business structure in America, accounting for around 26 million businesses, according to the latest I.R.S. data. Many are sidelines — workers who pick up an occasional freelance project or collect royalties report it on their taxes as business income — but millions of people rely on their business income as their primary source of support.Yet, because of the S.B.A. edict that sole proprietors had to be profitable to get a P.P.P. loan, many didn’t qualify. Nicole Davis, an accountant in Georgia who specializes in small …

Read More

Posted on

When Can I Apply for a P.P.P. Loan?

She did not directly mention the Paycheck Protection Program — the largest lending program by far in the agency’s nearly 70-year history — but she acknowledged the turmoil many companies are experiencing.The Second StimulusAnswers to Your Questions About the Stimulus BillUpdated Dec 30, 2020The economic relief package will issue payments of $600 and distribute a federal unemployment benefit of $300 for at least 10 weeks. Find more about the measure and what’s in it for you. For details on how to get assistance, check out our Hub for Help.Will I receive another stimulus payment? Individual adults with adjusted gross income on their 2019 …

Read More

Posted on

Stimulus Payment Delayed? You May Need to Claim It on Your Tax Return

Millions of people have already received their $600 federal stimulus payment. But some Americans will have to wait a bit longer — and may have to file their tax return to collect it.By law, the I.R.S. said, it must issue the stimulus payments by Jan. 15. After that, those who are entitled to a payment but haven’t received one must instead claim it as a credit on their 2020 returns.And some payments that have been sent are bouncing back to the U.S. Treasury because they were directed to inactive or temporary accounts that taxpayers can’t access.It’ …

Read More