Treasury Secretary Mnuchin -vs- The Always Insufferable Chris Wallace – The Coronavirus Relief Package…

Treasury Secretary Steven Mnuchin appears on Fox News to discuss the latest developments in the battle against COVID-19 and how the coronavirus economic relief package will roll out. Unfortunately the always insufferable Wallace wants to waste time discussing the politics of the administration effort and not communicate important details to American businesses/individuals about what financial relief efforts are available.

Smartly Secretary Mnuchin outlines the process. The Treasury Department has stood up a system inside the Small Business Administration that cuts through much of the bureaucracy. By using FDIC lenders (local banks) as the point of contact for small businesses and S-corps Treasury can backstop the process. [SEE BELOW]

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The local business (or S-corp) takes their payroll and yearly expense documents to their local bank where they already have a relationship. As long as the bank is in the FDIC network; and because the emergency funds are distributed based on a good faith relationship; the bank gives the business or individual immediate access to funds; the bank deposits in the business account. The FDIC guarantees the lender against any risk.

If the business does not continue payroll for the employees, the funds are considered a loan that must be repaid. However, if the business retains their employees (continues to keep current payroll); or -if needed- rehires any recent lay-offs using the funds provided; then the emergency loan becomes a grant the business will not have to repay. The system should be in place by this Friday.

The process is smart and can benefit the majority of Americans.  What Trump/Mnuchin has put into place is an incentive, a no cost way, for employers to continue paying their employees instead of the employees using unemployment compensation.

Companies with 0 to 500 employees can access the Treasury funds through their local bank or credit union (FDIC Lender).  As long as the company retains their employees, meaning continues to pay them, the loans do not have to be repaid.

This means small business employees get: (1) paid by their employer through July; and additionally, (2) those same employees are getting the coronavirus relief checks from the direct government assistance package [$1,200 per individual ($75k income) /$2,400 per couple ($150k income) plus $500 per child].  This should mitigate a great deal of financial hardship on U.S. workers.

Using the existing FDIC network to backstop and eliminate lender risk was a smart move and will speed up the process.

This entry was posted in Bailouts, Big Government, Coronavirus, Donald Trump, Economy, Legislation, media bias, President Trump, Uncategorized, US Treasury, USA. Bookmark the permalink.

45 Responses to Treasury Secretary Mnuchin -vs- The Always Insufferable Chris Wallace – The Coronavirus Relief Package…

  1. MaineCoon says:

    Secretary Mnuchin is one smart guy. He and POTUS are unbeatable in their action plans. Finally, a basic, simple plan that makes sense and by-passes all red tape.

    Well done.

    Liked by 21 people

    • The Phantom Stranger says:

      I’ve been deeply impressed by Mnuchin and his time serving the president.

      Liked by 9 people

      • bocephusrex says:

        I gotta say initially I couldn’t stand him and his tone-deaf Euro-trash wife, but I’ve become a fan-wish he’d lose the jet-black hair color though-

        Like

    • The Secretary has looked at his freshest, most alert and most self-confident during this very trying crisis. One can’t help noting that the breadth and scope of this relief package is staggering, and could only have been conceived and organized by truly exceptional people!

      Like

  2. Shacklesandchains says:

    I’d hate to judge this match up. There’d be no winner. Globalist Wallace versus fascist Mnuchin. Give trillions to Blackrock,Inc. to buy up companies that only toe the green new deal line. Larry Fink, who is one of the members of Blackroc,k hates oil, gas and coal. This means any corporation getting bought by big brother government will have to toe the carbon emissions tyranny of Agenda 2030 and the Paris Climate Treaty.

    Like

  3. Jus wundrin says:

    Good. Too bad there isn’t a way to erase the PORK!

    Liked by 1 person

    • thedoc00 says:

      The President could stall as the money is allocated but not yet obligated by the agency responsible. The agency responsible for handling the funds can be required to “write” a plan and then rewrite it. Easily delay obligation by weeks. .

      Like

      • thedoc00 says:

        After the delay ends, another delay as reprogramming permission is sought. There are legal budgetary procedures that can be legally used to use the money to actually due some good.

        Like

  4. Eric says:

    Gambling on a second term, but it’s really playing with house money. If he gets a second term (likely) he digs us out of the hole within a year. If not, doesn’t matter – they’ll lie and blame him anyway so what’s the loss?

    The hand that’s being played and what’s being wagered are insignificant – this is the last chance for the survival of the republic.

    Liked by 5 people

    • guidvce4 says:

      Trump. One way or another a winner. Again. Do the lefties see it? I kinda doubt it or they would not have agreed to the package. We’ll see. Fun to watch.

      Liked by 3 people

  5. bkrg2 says:

    What a rough day for team Trump – Chuck Toad, Fake Tapper, and Chrissy Wallace. 😦
    You couldnt pay me enought to sit through the interview circuit with those idiots.

    Liked by 1 person

  6. Parker Longbaugh says:

    This may be off topic but if you do use take out from a usually dine in restaurant now doing take out remember to tip your server. The poor girl where we pick up tonight was so appreciative of my tip it was obvious she had not been receiving them from other customers.

    Liked by 15 people

    • rvsueandcrew says:

      If ever there were a good reason to be off topic, this is it. On behalf of waiters and waitresses, thank you, Parker.

      Liked by 7 people

    • Lanna says:

      Great reminder, thank you. I don’t pick up from a dine in restaurant often, but I always tip when I do, always get a thank you and a mention of how few people tip for pickup. I have a friend who picks up a $6 sub sandwich almost weekly. Last week she paid with a $20 bill, told them to keep the change as a tip. All the girls working there came over to thank her, one in tears.

      Liked by 4 people

    • Cam says:

      Yes, please do go to restaurants and get take out! My daughter said her sandwich shop usually sells $1200 a day, and with just a few ours to go, had only sold $200… so these small businesses are going to need those loans he was talking about, and for us to continue supporting them as much as possible.

      Liked by 1 person

  7. Merkin Muffley says:

    Today Wallace asked some health guy the same question FIVE TIMES to get him to say Trump’s original goal of Easter was crazy. The guy never took the bait. But Trish Regan loses her job!

    Liked by 2 people

  8. Lanna says:

    Thanks, SD, this is much needed info. I have a relative and a friend who both have businesses and have scheduled meetings at their banks tomorrow, have passed on a link to this to them. Will make it easier for them I’m sure.

    Like

  9. spren says:

    I think the Fox channels (FNC and FBC) are in a death spiral. First, they fire Trish. Next we hear they are no longer television the Trump Press meetings in full. Charles Payne and Lou Dobbs on (permanent?) quarantine. Stuart Varney becoming squishy.

    Those evil spawn of Murdoch are really doing great, and with the extraordinary assistance from Paul Ryan (what were his qualifications to run a news network?) The Left despises everything about Fox and will never watch them. Meanwhile, the mental “giants” running the network are doing their best to alienate their loyal viewers. I didn’t think anyone was stupid enough to pull a Glenn Beck self-destruction, but Fox is doing its very best.

    Liked by 8 people

  10. Paul in Seattle says:

    This is game changer for a small business. Basically a paid vacation for all the workers that need to stay at home or work for a business that is ordered to shutdown. On the other side of this we need to go out of our way to support these same temporarily shutdown businesses. Imagine what a crooked Hilary would be doing, likely finding new ways to use this crisis to trash the Constitution, or Sleepy at the Switch Joe? If you want to know what divine providence looks like just look at our President.

    Liked by 2 people

  11. GB Bari says:

    Mnuchin continues to impress.

    Stays on message, doesn’t get sucked into speculation, and remains professional throughout the interview.

    Hugely positive member of President Trump’s Cabinet and Task Force.

    Liked by 9 people

  12. booger71 says:

    Since it looks like the economic shut down is going to be longer, I think it would have been better if the Average Joe or Jane would have had the option of borrowing 90 day or 180 day operating capital (housing, food, medicine, etc) at a reduced rate (3%) than getting a one time check that looks like it won’t show up till the end of April. Hundreds of thousands of people have already been out of a pay check for 3 weeks.

    Liked by 2 people

    • RePete says:

      The Paycheck Protection Program ensures the average Jose gets to keep they’re job. That way they don’t have to borrow money. The small business owners receive SBA backed loans straight from the bank they make deposits at. Can “borrow” up to %250 of 2/mo average business expenses and it will be forgive/Offset against your “loan.” So save your receipts. Plus we’ve all got an Obama check coming too! I’m buying more toilet paper!

      Liked by 3 people

    • Chip Doctor says:

      Booger71, I really fear the next 30 days. It isn’t hundreds of thousands that are paycheck to paycheck, it is millions, and likely more than 75% of Americans. While some can survive for a little while on credit cards, there are many millions that do not have one. These people are likely out of money and out of food. It won’t take long for the looting to begin.

      My friend in Guatemala says that their lockdown has been extended until at least Easter. The vast majority of Guatemalans do not have savings or credit cards. Nor can they expect checks from the gov’t to show up. They also do not have a healthcare system that can handle any kind of crisis like Italy or even NY. Guatemala is but one of over 150 affected countries that are going to have a disaster.

      I don’t know yet who is at the core of this. Likely cabal of globalists that include Soros and perhaps Bill Gates, working with China. But regardless of who, there needs to be a huge price paid for the utter destruction of so many lives here and around the world.

      I still trust President Trump to steer us through this mess…..but what a mess it is.

      Liked by 2 people

    • Jon Shipp says:

      Here is a novel idea, have some **** savings for emergencies.

      Like

  13. namberak says:

    The other day I walked through the room when Wallace was on and I made some comment about it and my wife said, ‘you really don’t like that guy do you?’ And what came out of my mouth was ‘he ought to have his lips sewed shut and be launched into orbit around the sun.’ I guess my dislike went deeper than I thought ….

    Liked by 4 people

  14. Do people get the direct cash if they’re still employed? Do employers fund that?

    Like

  15. simplewins says:

    I have a question regarding the money for small business. I and a partner have an llc that is classified as an S corp by the IRS. But we also take a salary through a payroll company. How could this help me? We aren’t taking a salary now because we are frozen. If anyone can help I would be appreciative.

    Like

    • Lisa says:

      You are eligible for a “payroll protection” loan if you have less than 500 employees, were in business on 2/15/2020 and have paid employees. That’s it. You provide paperwork from last years payroll, and that is used to come up with an monthly payroll amount. The loan is 2.5 times your monthly payroll, which allows you to pay salaries for 8 weeks. You can also use it for rent, utilities, and a few other things. For the loan to be forgiven, you apply and provide proof that you used the money to pay payroll. No personal guarantees, no collateral, 100% guaranteed by the federal government.
      Call your local banker, as soon as possible for more information. This is meant to be a very fast process, hopefully starting this week.
      Good luck and Godspeed

      Liked by 3 people

  16. Nashville says:

    How would this apply to all the folks that work cutting our hair?
    The guys and gals at salons and barber shops.
    They rent space at a shop and work as an independent contractor.
    Are they SOL ?

    Like

    • Patrick Leahy says:

      Salon owners are out luck
      Lost $50,000 last month. And counting

      Like

      • Nashville says:

        Question that until now I have never looked into.
        What does a salon charge the girl doing the work for a chair in your salon?
        Yes I understand your overhead costs, rent on building, upkeep etc…
        You are free of many overhead costs of most small businesses, unemployment, workman’s comp, etc…
        Interesting times.

        Like

        • Patrick Leahy says:

          Not true, we run our salon by the book, meaning everyone is W2. We are required to carry worker comp, liability etc. we are not free of anything, except our govt mandated complete shutdown of our income and livelihood…

          Like

    • Skeptical Cat says:

      My sister-in-law is a self-employed consultant. She runs her business as a one-owner c-corp. She pays herself draws because her income varies a lot from month to month so she said it didn’t make sense to hire a payroll company. Her sales have fallen off a cliff in the past month. It sounds like she’s SOL because she doesn’t run payroll if I’m reading this right.

      Like

    • Lisa says:

      No they are not out of luck. It applies to sole proprietors, self employed and 1099 employees. It will be administered via local banks. Contact your bank and they should be able to walk you through the process.

      Liked by 2 people

  17. I cannot stand to listed to Chrissy Wallace anymore. He tries SO HARD to turn everything into Trump’s fault.. I’m done, Fox should send him packing.

    Liked by 1 person

  18. Fools Gold says:

    Has anyone ever wanted to shoot their TV screen? In the middle of watching the Faux news big nose democrap today I had my clip and 45 in hand talking myself out of it. I have a wonderful family to think about. Ya know what I mean?

    Like

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