Channel Should ‘Act Today’ To Get Its Share of Coronavirus Stimulus: RSM US Economist

‘The most important thing if you’re out there and you’re in need, you need to go now [and apply], it’s on a first come, first serve basis. So do not hesitate, act today,’ says RSM US Chief Economist Joe Brusuelas.

For small businesses in need of financial assistance amid the COVID-19 pandemic, the U.S. Department of Treasury has authorized up to $349 billion toward job retention and other expenses through the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act signed into law on Friday, March 27.

In an interview with CRNtv, RSM US Chief Economist Joe Brusuelas, who worked with the Trump administration to draft the bill, told CRN: “We’re having a very difficult time getting this out the door, it’s been a tough couple of days. We see lots of commitment in terms of loans, say roughly around $80 [billion] of the $350 billion, allegedly though the end of Monday had been committed but yet we’re not seeing money get out the door.”

Which is why he said, “If you need money now, you need to [apply] and get it.”

So, here’s what you need to know:

What can you tell us about the CARES Act Stimulus Package?

“Well I think it’s a pretty broad and aggressive first step and I want to reiterate that it’s just really the first step in what’s going to be a number of fiscal aid packages, and then eventually a fiscal stimulus once the economy is reopened,” said Brusuelas. “So far, we’ve put forward about $2.39 trillion in fiscal aid over three separate bills that’s roughly equivalent to 11.4 percent of GDP. The signature portion of this is the $350 billion dedicated towards providing direct and hopefully quick assistance to the small business community or firms with less than 500 employees.”

How will it help small businesses like solution providers in the industry?

“We’re now well into this and the idea is to use existing knowledge that banks traditionally dealing with small firms to assist the Small Business Administration (SBA) in getting the aid out as quickly as we can essentially to provide forgivable bridge finance to small firms,” Brusuelas told CRN. “The idea here is is that they get the capital in order to plug the hole caused by the decision to shut down the economy in many areas of the country to address the public health crisis this is what we call ‘self-distancing,’ and as long as these firms do not fire their staff and keep them on staff a good portion of this will be forgivable.”

What options are available for solution providers to find their business?

“Right now just with the SBA [there’s] the 7(a) and 7(b); the 7(a) is SBA’s catastrophe program [Economic Injury Disaster Loan Assistance]. If you need money now you need to go there and get it. Don’t wait, just go do it. Second, the 7(b) is the Paycheck Protection Program that is the $350 billion, some of it potentially forgivable to facilitate bridging the chasm of the crisis.”

As for interest rates, what can business owners expect?

“Well, they’re going to cap everything at four percent for the SBA program in terms of the financing,” said Brusuelas.

How is eligibility determined?

“The major requirement is right now you have to have less than 500 employees in any one given spot. You could be a non-profit, you could be a for-profit, the eligibility is pretty wide. So it’s just a matter of getting it done that’s the most important thing if you’re out there and you’re in need, you need to go now, it’s on a first come, first serve basis. So do not hesitate, act today.”

To learn more on how you can apply, visit CRNtv.