Airlines, restaurants, pensions among the winners of the recovery plan
The $ 1.9 trillion economic aid package against the coronavirus should pass the House on Wednesday includes more money for direct payments to households from the Internal Revenue Service as well as an extension of unemployment programs linked to the pandemic.
But it also includes money set aside for specific industries or sectors of the economy. Here are some of the notable targeted provisions:
Airlines companies: Air carriers and their subcontractors would get $ 15 billion for an extension of the payroll support program grants supposed to prevent airlines from laying off staff. Like previous rounds of aid, there would be restrictions on layoffs and pay cuts for workers, as well as stock dividends and CEO pay.
Small enterprises: The Paycheck Protection Program, the popular initiative that provides forgivable loans to small businesses (500 or fewer employees or who pass an alternative industry size test from the U.S. Small Business Administration) would get an additional $ 7.25 billion. Another type of small business support – the Economic Disaster Lending Program – would get an additional $ 15 billion for low-interest loans and advances to sole proprietorships, independent entrepreneurs and co-ops.
Restaurants: New SBA program would provide $ 28.6 billion assisting restaurants, bars, food trucks and other food and beverage suppliers until December 31, or a date to be determined by the SBA administrator. This is up from an initial allocation of $ 25 billion for the program in an earlier version of the “American Rescue Plan” legislation. About $ 5 billion of the $ 25 billion would be set aside to help establishments with gross revenues of $ 500,000 or less in 2019.
Companies and industries with under-capitalized pensions: A provision long sought by Democrats, costing $ 81.5 billion, would give underfunded pensions more time to consolidate their finances and allow the Federal Pension Benefits Guarantee Corporation to provide subsidies to pension plans under-capitalized guaranteed by the PBGC.
Childcare providers: The bill would provide $ 25 billion to stabilize the availability of child care services and allow child care providers to pay staff and purchase personal protective equipment.
Internet news providers only: Eligibility for the Paycheck Protection Program would be expanded to include all organizations that are an “Internet-only news publisher or Internet-only periodical publisher, and dedicated to the collection and distribution of news and local or regional and national information. ” Points of sale could have more than one physical location as long as no location had more than 500 employees.
Live entertainment venues: The bill would provide an additional $ 1.25 billion for grants to the SBA’s private theater operators, which provide assistance to operators or promoters of venues, theaters, live performing arts groups, museums, cinemas and talent representatives.
This report was first published on March 8, 2021.