ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
Policies & IssuesApr 24, 2020
House Passes $484B in Small Business, Hospital Funding
The new bill includes an additional $310 billion for the Paycheck Protection Program, which ran out of funding last week.
The U.S. House of Representatives passed an additional $484B in funding for small businesses and hospitals Thursday evening. (Image courtesy of Wikimedia Commons/Martin Falbisoner)
Washington—President Donald Trump is expected to sign off on $484 billion in funding Friday afternoon that will prop up small businesses and hospitals struggling amid the coronavirus pandemic.
The new bill includes an additional $310 billion for the Paycheck Protection Program, which offers loans to businesses with 500 or fewer employees that may be forgiven if used on payroll.
The program, approved by Congress and signed into law by the president last month, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides aid to keep businesses afloat during the coronavirus pandemic.
The PPP ran out of its previous $350 billion in available funding after applications poured in.
The rollout of the program was rocky, as banks and small businesses dealt with system crashes and a lack of direction from the federal government.
As the well ran dry and frustration mounted, reports that big business had been benefiting from PPP added fuel to the fire.
More than 100 publicly traded companies received millions in coronavirus aid earmarked for small businesses.
The text of the law allowed for any business classified under an “accommodation and food services” code that “employs not more than 500 employees per physical location” to qualify, which opened the door for big restaurant chains like Shake Shack and Ruth’s Chris Steak House to receive loans.
“The intent of this money was not for big public companies that have access to capital,” said Treasury Secretary Steven Mnuchin at a White House briefing Tuesday.
In response to backlash, Shake Shack returned the $10 million it had received while Ruth’s Chris Steak House gave back its $20 million.
The Small Business Administration issued new guidance Thursday to deter big businesses from applying for the renewed funding and put pressure on more big businesses to return the money.
“It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification,” said the SBA.
Of the new $310 billion in funds, $60 billion will go to small lenders, set aside in response to Democrats blocking a $250 billion funding bill earlier this month that they felt did not include adequate funding for community-based financial institutions, which they said would benefit minorities, veterans, and rural Americans.
When applying for the first round of PPP loans,
Editors' Picks
Sponsored by
those who had existing relationships with banking institutions were said to be prioritized.
In a recent Jewelers of America-led webinar, Dentons partner Randy Nuckolls noted it may speed up the process if retailers use their regular banks to apply.
Of the $60 billion for small lenders, $30 billion has been set aside for loans made by federally insured lenders with assets between $10 billion and $50 billion. The other $30 billion will go to loans made by community financial institutions, as well as small federally insured banks and credit unions with assets under $10 billion.
It has not been announced when the money will become available, but a source told CNN that once the bill is signed into law, it could take an additional day before the Small Business Administration can reopen the program.
The money could run out in less than 10 days due to the large backlog of applications, according to the CNN report.
The SBA will also receive $60 billion to put toward its Economic Injury Disaster Loan grants.
The SBA had offered a new emergency grant allowing a business that has applied for a disaster loan to get an immediate advance of up to $10,000, which can be used for payroll purposes.
The bill also includes $75 billion in grants to hospitals tending to COVID-19 patients. An additional $25 billion will go toward boosting coronavirus testing.
The House also approved putting in place a Democratic-majority select subcommittee to oversee the Trump administration’s use of $500 billion in funding for corporations, states, and municipalities hit hard by the coronavirus pandemic.
Trump lauded the passing of the bill at a White House briefing Thursday.
“At a time when many Americans are enduring significant economic challenges, this bill will help small businesses to keep millions of workers on the payroll,” the president said.
More than 26 million people have filed for unemployment insurance over the most recent five-week period, per government data released Thursday.
In response to the coronavirus pandemic, the government has allocated around $2.4 trillion across four relief bills, according to the Congressional Budget Office.
In a recent Jewelers of America-led webinar, Dentons partner Randy Nuckolls noted it may speed up the process if retailers use their regular banks to apply.
Of the $60 billion for small lenders, $30 billion has been set aside for loans made by federally insured lenders with assets between $10 billion and $50 billion. The other $30 billion will go to loans made by community financial institutions, as well as small federally insured banks and credit unions with assets under $10 billion.
It has not been announced when the money will become available, but a source told CNN that once the bill is signed into law, it could take an additional day before the Small Business Administration can reopen the program.
The money could run out in less than 10 days due to the large backlog of applications, according to the CNN report.
The SBA will also receive $60 billion to put toward its Economic Injury Disaster Loan grants.
The SBA had offered a new emergency grant allowing a business that has applied for a disaster loan to get an immediate advance of up to $10,000, which can be used for payroll purposes.
The bill also includes $75 billion in grants to hospitals tending to COVID-19 patients. An additional $25 billion will go toward boosting coronavirus testing.
The House also approved putting in place a Democratic-majority select subcommittee to oversee the Trump administration’s use of $500 billion in funding for corporations, states, and municipalities hit hard by the coronavirus pandemic.
Trump lauded the passing of the bill at a White House briefing Thursday.
“At a time when many Americans are enduring significant economic challenges, this bill will help small businesses to keep millions of workers on the payroll,” the president said.
More than 26 million people have filed for unemployment insurance over the most recent five-week period, per government data released Thursday.
In response to the coronavirus pandemic, the government has allocated around $2.4 trillion across four relief bills, according to the Congressional Budget Office.
More on Policies & Issues
The Latest
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
Weekly QuizMay 09, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
SourcingMay 14, 2024
Anglo American Confirms It Is Looking to Sell De Beers The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
MajorsMay 14, 2024
Platinum Born Taps ‘Born Leaders’ for New CampaignThe ad aims to position platinum jewelry as ideal for everyday wear.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
MajorsMay 09, 2024
Watches of Switzerland Pays $130M for Roberto Coin Inc.The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
Supplier BulletinMay 08, 2024
Fusing Past and Present at the Las Vegas Antique Jewelry & Watch ShowSponsored by the Las Vegas Antique Jewelry and Watch Show
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
