New $900 Billion Stimulus Package Could Offer More Relief to Toy Industry
December 22, 2020 | Congressional lawmakers introduced a new $900 billion COVID-19 stimulus relief bill, which will enhance federal unemployment benefits, add new Paycheck Protection funds for small businesses, extend unemployment benefits for families, and redistribute $429 billion in unused funds from the CARES Act for emergency lending programs run by the Federal Reserve. Although Treasury Secretary Mnuchin originally indicated the money could start flowing as soon as next week, this evening President Trump called for additional relief funding to be added before he will sign.
“This additional aid will prove critical to many of our members’ businesses as we enter the new year,” said Ed Desmond, executive vice president of external affairs at The Toy Association. “We are closely monitoring the final text of the bill and intend to provide additional guidance and resources as to how it may assist the toy community.”
As of this reporting, the key takeaways for those in the toy industry include:
- $284 billion to be put toward a second round of forgivable Paycheck Protection Program (PPP) loans, including $12 billion designated for minority-owned businesses
- Expansion and modifications to PPP eligibility
- An additional round of $600 stimulus checks for all Americans earning up to $75,000 per year (half the amount distributed under the CARES Act)
- A $300 federal unemployment supplement
- Plans to maintain pandemic-era programs that expanded unemployment insurance eligibility, which were set to expire on December 31, 2020
The Toy Association previously held a series of COVID-19-related business webinars and meetings with members that provided information on key provisions and tax benefits under the CARES Act as well as guidance on reopening businesses. Recordings of those sessions, along with additional COVID-19 business-related information, can be found in The Toy Association’s COVID-19 business toolkit.