EconomyTop News

U.S. business group calls for large-company loans to prevent layoffs

2 Mins read
imageEconomy9 hours ago (Mar 20, 2020 06:30PM ET)

WASHINGTON (Reuters) – The U.S. Chamber of Commerce on Friday called for a new federal bridge loan program to help larger companies with over 500 employees keep workers on their payrolls as they struggle with falling demand due to the coronavirus.

The proposal, which would not have a specific dollar cap, would be for a fourth round of coronavirus rescue funding, in addition to a $1 trillion package that would provide payments to individuals, aid to small and mid-size businesses and loans to airlines and other selected industries hard-hit by the virus.

That package, still under negotiation in Congress, “fails to take care of the 68 million American workers that are employed by enterprises with more than 500 employees,” the chamber said in a statement.

The influential business lobby group said the program should be for large companies that have seen a revenue loss of 10% or more due to the virus outbreak for a maximum amount covering three months of payroll and healthcare expenses.

Employers who lose 25% of their revenues but maintain 90% of their employees at existing pay levels through December 2020 could have 10% of the five-year loan forgiven, according the proposal, as an incentive to retain staff.

“It is a loan, not a bailout,” said Neil Bradley, the chamber’s chief policy officer.

He told a conference call that the group does not want to put a specific dollar cap on the program because the demand is unknown, and the goal is to keep more people on company payrolls and off government-paid unemployment compensation.

“Our primary principle remains clear and firm: No family and no business should go bankrupt because of the financial hardships caused by the coronavirus,” Bradley said.

U.S. business group calls for large-company loans to prevent layoffs

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data. 

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Design Solutions

Related posts
Market OverviewTop News

India's Foreign Ministry asks some officials to quarantine after two positive for virus

2 Mins read
World7 hours ago (May 29, 2020 02:10PM ET) By Aditya Kalra NEW DELHI (Reuters) – At least two people working at India’s…
Market OverviewTop News

New York City on track to reopen on June 8, five upstate regions ready to enter phase two: Cuomo

2 Mins read
World7 hours ago (May 29, 2020 02:15PM ET) (C) Reuters. New York Governor Cuomo holds a briefing on the coronavirus response at…
Market OverviewTop News

IMF says Bosnia's failure to disburse IMF emergency aid is unprecedented

2 Mins read
World8 hours ago (May 29, 2020 01:55PM ET) By Daria Sito-Sucic SARAJEVO (Reuters) – Five weeks after the International Monetary Fund gave…
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Leave a Reply

Your email address will not be published. Required fields are marked *