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So just this morning we got two big pieces of news first of all the new unemployment numbers came out and we found out that over the last three weeks 17 million people have filed for unemployment and we also got news of a new 2.3 trillion dollar round of loans from the federal reserve aimed at propping up small businesses local governments as well as business and
Consumer credit so that’s what we’re going to talk about in this video is what this new 2.3 trillion dollar package looks like who these loans are geared towards but we’re also going to go back over the last three stimulus bills that were passed related to the drivers that cannot be named so this video doesn’t get demonetised just so we have a big picture idea on
The stimulus money so far that has been directed towards this economic crisis so first of all back on march 6th we had the first bill passed and that was the seabee preparedness and response supplemental appropriations act at a cost of eight point three billion dollars and as you’re going to see here the amount of money in these stimulus packages really ballooned
As the virus grew more and more out of control and as we realized it was going to affect us here in the united states but this initial stimulus package here was eight point three billion dollars in up that money six point seven billion was designated for us aid and one point six billion was designated for international aid now that us aid went towards research
And development of vaccines and therapies some money went to the cdc for prevention and response as well as money sent to the fda to assess potential disruptions of the supply chain which we did see as a result of this pandemic with people rushing to the stores and buying up toilet paper pasta and other popular food products and this also included 20 million
Dollars for the small business association which when you compare that to the numbers that we’re going to look at in a minute here as far as money being directed to small businesses that is a very paltry amount of money and then as far as the international aid goes that went towards international response assistance humanitarian assistance as well as emergency
Evacuations of u.s. citizens who were currently overseas in affected countries so that was the very first bill we had in money that was directed towards the virus and then we had the second bill which came out a couple of weeks later now that bill came out on march 18th and that was called the families first cv response act at a cost of just 3.5 billion dollars
And this bill in particular was aimed to offer paid leave for workers and families who were affected by the virus or had family members affected or had children who were currently unable to be in school or any kind of daycare program and this bill primarily affected employers with 50 to 500 employees and here’s how it broke down and this just recently went into
Effect at the beginning of april so it’s still very relevant basically employees are required to get 2 weeks of sick pay at 100% of their normal rate of pay if they are affected by the virus or in quarantine waiting to be tested for the virus now beyond that families would also get 2 weeks of sick pay at 66% or 2/3 of their normal pay if they are taking care of
A family member who was affected by the virus or a child who is unable to be in school or some kind of daycare and lastly employees who have been on the job for 30 days or more are entitled to up to 10 weeks of extended leave at 66% or 2/3 of their pay if their children are unable to return to school or get some type of daycare service so this primarily affects
Medium-sized businesses they did 50 to 500 employees because a lot of small businesses with under 50 employees have so few employees that they’re very essential to the day-to-day operations so they couldn’t exactly afford to have people out for that period of time so for the medium-sized businesses this provided they and employees the ability to have paid time off
Either partial or full pay related to the virus themselves being sick quarantine themselves children being out of school or family members being affected by the virus so then we have the big one here which is the cares act which was passed on march 27th which is the big stimulus bill that pretty much everyone out there is talking about maybe you haven’t heard of
These other two just because there were much smaller amounts of money but this was the big two trillion-dollar stimulus bill the largest one ever passed in history and there’s some major components here that a lot of us are familiar with first of all the 1200 dollar stimulus checks plus $500 per child that is the biggest piece that affects your average person you
Know watching my channel here we’ve done a lot of videos on the stimulus checks it also included 367 billion dollars in money directed towards small businesses that was put in place to help out small businesses essentially allowing them to receive a forgivable loan that can be used towards certain expenses as well as two and a half months there are normal operating
Payroll costs this also included five hundred billion dollars in loans to big companies that were affected by the economic crisis as well as some airline grants which break down as follows it was 25 billion dollars in cash grants to airlines four billion dollars in cash grants to air cargo carriers three billion dollars in cash grants to airline contractors as well
As 150 billion dollars in loans to state and local governments that were suffering and this also included 130 billion dollars of money being directed towards hospitals and other medical facilities that needed the aid so that was the big one right here guys that’s the one most of us have been talking about but today coincidentally as the unemployment numbers again
Ballooned out of control we had another stimulus package announced here which is 2.3 trillion dollars of loans directed towards main street small businesses as well as state and local governments and money directed towards freeing up credit lines for both businesses and consumers so here’s how this breaks down so first of all we have six hundred billion dollars in
Loans directed towards small to medium sized businesses making reasonable efforts to keep employees on payroll and i believe the main reason why we’re seeing this is because so many people are out there trying to get at that ppp money it is drying up very quickly so they had to do something to expand that now the ppp program is a forgivable loan where most people
Won’t pay that back these loans are loans that you would in fact be paying back to the federal government so if you are a small to medium sized business this is how these six hundred billion dollars worth of loans are going to work these are going to be four-year term loans for businesses up to ten thousand employees and the loans will range from 1 million dollars
To 25 million now as far as the interest rate goes the rate is going to be two and a half to four percent above the federal funds rate and the most important part here principal and interest payments will be deferred for one year so it’s essentially a very low interest loan for small to medium businesses where they pay nothing for the first year and then they pay
It back over a four year term which will allow them to free up cash to keep employees on payroll and run normal business operations now who’s paying for these loans the majority of this money is coming from the federal reserve the regular banks themselves are going to buy up just 5% of the loans and 95% of these loans are going to be backed by the federal reserve
Aka printing money essentially they’re just throwing free money out there for businesses that are currently struggling a very small amount of this is actually being backed by the banks now in addition to that there is also 500 billion dollars in additional loans to state and local governments that are struggling to combat the virus and the shutdowns and lastly
The biggest component here 850 billion dollars aimed at expanding credit lines for households and businesses so as the banks are struggling and possibly reeling in their credit lines for consumers and businesses due to the economic slowdown they are going to be pumping money into the system allowing banks to offer lines of credit that will be backed by the federal
Reserve so in a nutshell here the idea behind this two point three trillion dollars of new loans for the federal reserve is to get small to medium sized businesses much-needed capital to stay afloat and keep employees on payroll it’s going to help prop up state and local governments and free up credit lines for businesses and consumers to encourage spending while
Also allowing people the potential money here for emergency type situations whether it’s a family in need of supplies or groceries or a business in need of tapping a line of credit you know for inventory or to stay afloat but anyways guys that is a wrap up on the new loans from the federal reserve as well as the past three major stimulus packages related to the
Virus will there be more money to follow we’ll have to see it’s going to be based on unemployment numbers that come out and everything we see happening in the next couple of weeks but just between this right here you know we have over four trillion dollars of money here that has been basically printed to aid in this crisis but thanks so much for watching guys i
Hope you enjoyed this quick update if you did please smash a like for the youtube algorithm subscribe and hit that bell for notifications and lastly guys if you want to get two free stocks we ball is offering a free promotion right now or if you sign up for a brokerage account with them you’re going to get one free stock just for signing up then you fund it with
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Transcribed from video
The NEW $2.3T Stimulus Package Explained By Ryan Scribner
