The National Association of Broadcasters welcomed the historic federal stimulus package, and has posted a list of key provisions of interest to broadcast businesses.
“NAB is grateful to Congress and the White House for passage of the coronavirus relief package today,” said President/CEO Gordon Smith in a statement. “Allowing businesses with fewer than 500 employees to gain access to forgivable Small Business Administration loans will go a long way towards keeping many broadcasters and local businesses afloat during these difficult times.”
Smith said the devastation to local businesses “and to local broadcasters who support those businesses to drive commerce in hometowns across America” is unprecedented. He said NAB plans to advocate for further relief for broadcasters.
Examples of details called out by NAB in its summary of relevant provisions:
- The Small Business Administration Loan Program will support loans of up to 250 percent of average monthly payroll, up to $10 million. This effort is targeted at small businesses, nonprofits and veteran organizations with up to 500 employees; self-employed and “gig economy” individuals; and other specific industry sectors. The loans are to available immediately through SBA-certified lenders (banks, credit unions, etc.).
- Corporate tax changes will allow employers to defer payroll taxes incurred through the end of 2020, with half to be repaid by the end of 2021. There will be Treasury loans for “distressed industries” from a $454 billion pool. This is designed to target entities that might not otherwise be able to secure lending.
- The Treasury Department is being asked to implement a program that provides low-interest financing to lenders that make direct loans to eligible businesses and non-profit organizations where uncertainty of economic conditions makes loan necessary to support ongoing operations. Funds will be used to retain at least 90 percent of workforce until Sep. 30, 2020, with other requirements.
- Other points include enhanced unemployment insurance payments; an additional $600 per week for every person applying for unemployment benefits, over and above normal state benefits; and an employee retention tax credit program.
Find the full list here.