Who Will Benefit from the $2 Trillion Coronavirus Economic Stimulus Bill?

By Anna Breuer on 26 March 2020
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Although it awaits passage in the House of Representatives, the White House and Senate finally agreed on a $2 trillion economic stimulus and rescue act late Wednesday.

The bill represents the largest package of its kind in the country’s 244-year history and is a response to the novel coronavirus pandemic that has shut down much of the economy in the United States and crippled the world’s economy.

Here’s what the rescue package will offer various industries.

AIRLINES

As it stands, the package includes $61 billion for the airline industry, with half in the form of loans and half in cash that would support salaries and benefits in exchange for equity.

The bill includes restrictions on executive compensation and furloughs.

Passenger airlines would receive up to $25 billion to cover payroll, while cargo airlines would see $4 billion, with a similar amount in loans.  The bill also allots $3 billion for airline contractors including caterers and ground support staff.

AIRPLANE MANUFACTURERS

While Boeing was not mentioned by name, the $17 billion in loans and loan guarantees set aside „for businesses critical to maintaining national security“ is believed to be intended for Boeing, the nation’s only remaining commercial airplane manufacturer.

The Washington Post, citing sources, confirmed that this is the case.

AUTOMOBILE MANUFACTURERS

The U.S. auto industry will see loans and loan guarantees for companies struggling to keep the lights on when on hiatus from producing cars or auto parts.  Some parts suppliers could be eligible for small-business loans and the bill includes $1.5 billion in assistance to help rebuild manufacturing supply chains.  In addition, the Defense Department will have control of $1 billion that can be used to invest in the production of medical protective products for medical workers.  General Motors and Ford have already said they will make masks and other products for healthcare workers.

RETAILERS

The stimulus package will allow workers who lost their jobs to receive up to $100,000 in unemployment insurance, while companies that retain their employees during the coronavirus will be eligible for a tax credit. Retailers will be offered loans from a $454 billion loan pool.

SMALLER TRAVEL COMPANIES

Individual hotel operators, Airbnb hosts, and other travel-related companies will be able to take advantage of small-business loans which will be open to freelancers and companies with no more than 500 employees at a given location.

ENERGY COMPANIES

Energy companies didn’t fare well under the bill’s provisions. President Trump had sought what Senator Chuck Schumer called a “$3 billion bailout for big oil” due to record low oil prices but the bailout wasn’t included in the bill. Coal didn’t fare any better. The $800 million it sought for  mining companies also wasn’t included in the package.

(Photo: Accura Media Group)

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