I previously covered how the Federal Government’s COVID-19 Stimulus bill will assist individual Americans, but a large slice (70%) of the pie is allocated to businesses both small and large, and local governments. In a widespread pandemic, individuals are not the only ones who need assistance. Let’s take a look at the breakdown between Large and small businesses, state and local governments, and Public Services.
Big businesses will receive $500 billion and account for 25% of the total stimulus package. The hope is this money will stabilize the economy by helping out the biggest players. Among those are airlines, which have received a large amount of criticism. However, a part of this bill prevents any company that receives loans from buying back stocks. This will hopefully prevent the companies who sold off large amounts of stocks early in the pandemic from profiting off of government assistance.
The Small businesses sector will receive $377 billion and account for 19% of the stimulus package. This money will benefit companies with less than 500 employees to cover paying rent and keeping employees on the payroll rather than laying off huge numbers of the small business workforce.
State and Local Governments
In an effort to support both state and local governments in their responses to the COVID-19 epidemic, $179.5 billion (17%). A portion of this money will also be used to support schools and daycares.
Public and Health Services
Public and Health services will receive $179.5 billion and account for 9% of the stimulus package. Out of this $179.5 billion, $100 billion will go to healthcare providers to support their efforts in fighting COVID-19 on the front lines.