Former Trump senior adviser Kevin Hassett provides insight into the next stimulus package and its outlook for the economy amid concerns about inflation.
The Biden government on Monday announced plans to offer “equitable relief” to small businesses affected by the coronavirus outbreak, focusing on those that may have had difficulty obtaining forgivable loans and minority-owned businesses.
The White House issued a statement saying it was based on last year’s Pay Check Protection Program. The PPP program, which started a month ago, increased funding for companies with fewer than 10 employees by 60%, as well as rural companies that had a 30% increase.
The statement said that funding that was distributed through community development financial institutions and minority depository institutions also increased by 40%.
The government also announced a 14-day period starting on Wednesday, which allows companies with fewer than 20 employees to apply for loans. Management said it is not uncommon for these companies to need more time to file the appropriate paperwork. The statement said freelancers would also have a chance to qualify for more financial support.
Biden’s team is also disbursing $ 1 billion to target individual owners, such as contractors and beauticians, most of whom are owned by women and people of color.
Vice President Kamala Harris and Treasury Secretary Janet Yellen spoke earlier this month at a virtual meeting with officials representing some of the 140 chapters of Black Chambers of Commerce across the country. The appearance was part of the government’s continued effort to gain support for President Joe Biden’s $ 1.9 trillion coronavirus relief program.
Yellen said the country was affected by the 2008 financial crisis and the long and slow recovery from that economic crisis, with black unemployment peaking at nearly 17% compared to a 9.2% high for white unemployment during the period.
“This is what economic crises do,” said Yellen. “They hit black people harder and for longer. … I am concerned that the current crisis will do it again ”, unless action is taken.
The Associated Press contributed to this report