Treasury Secretary Steven Mnuchin explains some of details about how the CAREs Act provides financial relief for small businesses (0 to 500 employees). Mnuchin explains how the primary part of the relief bill will support approximately 50% of those impacted.
.
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.
National Economic Council Director Larry Kudlow appears on Fox News with Maria Bartiromo to discuss the critical decisions to balance health risks for Americans with the need to keep the U.S. economy primed to reignite.
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]
.
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 White House holds a COVID-19 task force briefing today to provide updates and take questions from the media pool at 5:00pm ET. [Livestream Links Below]
A month ago CTH pointed out the short-sighted approach when federal, state and local government dictates began enforcing restaurant closings. By shutting down 50% of the total food supply output, the retail food supply chain was simply overwhelmed.
Since then some state governors recognized the issue their decisions made within the total U.S. food supply network; and subsequently modified their state rules permitting restaurants to sell their bulk food ingredients to retail consumers. This was a smart move by some state and local officials. Here’s one example of how it is working:
Miami – […] Unlike many restaurants, which are trying to stay afloat delivering and offering take out after governments ordered dining rooms closed to stem the spread of the coronavirus, Threefold Cafe is busier than ever.
Oh, this is almost too much winning. Almost… President Trump has appointed White House Manufacturing Advisor Peter Navarro to lead all U.S. coordination of the Defense Production Act. Just like that… presto… Navarro becomes a bazillion times more powerful than CoC President Tom Donohue. Delicious.
WASHNGTON – President Trump announced Friday he is appointing his trade adviser Peter Navarro to serve as his national Defense Production Act policy coordinator after using the act to force General Motors to begin making ventilators to treat coronavirus patients.
“He’s a tremendous guy and he will do a fantastic job,” the president said during a press briefing with his coronavirus taskforce at the White House. He said Navarro will serve as the national Defense Production Act coordinator for the federal government. (link)
Peter Navarro has been a long-term China hawk warning about the risk of U.S. multinationals doing critical supply-chain manufacturing overseas. Navarro, working closely with U.S. Trade Representative Robert Lighthizer, has been the tip of the spear in the execution of America First policy and jobs.
This appointment, and these additional responsibilities, is a recognition for his efforts.
Earlier today President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in the oval office. [Video and Transcript Below]
.
[Transcript] – THE PRESIDENT: Well, thank you all very much. This is a very important day. I’ll sign the single-biggest economic relief package in American history and, I must say, or any other package, by the way. It’s twice as large as any relief ever signed. It’s $2.2 billion, but it actually goes up to 6.2 — potentially — billion dollars — trillion dollars. So you’re talking about 6.2 trillion-dollar bill. Nothing like that. And this will deliver urgently needed relief to our nation’s families, workers, and businesses. And that’s what this is all about.
And it got a 96 to nothing. And, I don’t know, what was the number in Congress?
Democrats and resistance media writ large have been demanding that President Trump invoke the Defense Production Act to force companies to make equipment for the fight against the coronavirus. Until today, most companies voluntarily adjusted their manufacturing systems and networks to assist; so forced compliance was not needed.
However, General Motors now states an inability to meet their prior commitments for the manufacture of ventilators:
Now it really gets interesting… The CEO of GM is Mary Barra, considered a hero amid the political circles of democrats; and considered a potential pick for vice-president on a Democrat ticket. Despite her generally weak leadership, democrats adore her resistance bona-fides.
The axiom: “be careful what you wish for” applies big time, because President Trump has just triggered the Defense Production Act to force General Motors to comply with their initial promise. By playing games, again; CEO Mary Barra put herself in the crosshairs of the Trump administration.
