Another stimulus relief package could help small businesses

Updated: Jul. 24, 2020 at 10:13 PM CDT
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BIRMINGHAM, Ala. (WBRC) - Another economic stimulus bill is in the works, meaning potential financial relief to many.

The first Coronavirus relief package helped many small businesses earlier this year, with payroll protection and disaster relief loans, but the next bill could help businesses even more.

Lawmakers have floated several ideas to help small businesses that could make their way into the new bill. It extend weekly unemployment benefits, which are set to end this week. The new amount is still undecided, but could be less than the $600 from the first CARES Act.

Lawmakers have discussed a payroll tax cut. It would eliminate Medicare and Social Security tax, benefiting both employees and employers.

The new relief plan could also extend the Paycheck Protection Program that is set to expire in August.

Congress is also discussing a ‘return to work bonus’ where Americans would be paid money to start working if they are unemployed or furloughed. Sen. Rob Portman (R-OH) proposed a $450 a week bonus to return to work.

Managing director with Sabre Finance, Reginald Smith, said small businesses in Birmingham need relief now more than ever.

“This has been traumatic for those business owners,” Smith said. “A lot of them are scrambling and are really building up debt. They are owing individuals, because they are not able to pay right now.”

Congress could announce the new stimulus bill next week.

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