Senate to Vote on COVID-19 Relief Bill, Allocating Money to Businesses
Senators will vote again March 25 on whether to pass the $2 trillion bipartisan package to help stimulate the U.S. economy. While the Senate will vote on this bill, the House of Representatives likely will not act on it until March 26, according to a recent article in Reuters. While the full package has not been announced to the public, most of the focus is on businesses in the U.S.
Receiving payments from customers has been increasingly difficult for credit managers with the COVID-19 pandemic disrupting cash flow from most industries while simultaneously overwhelming industries that produce essential supplies (medical gear, sanitation products, etc.). Credit managers have reported extending terms and allowing for more flexibility with payments, but this flexibility may be more of a short-term fix.
The bill allocates about $500 billion to "hard-hit" industries, according to Reuters, in addition to $350 billion in small-business loans and $100 billion to hospitals and other health care-related industries. Credit managers should be aware of how much may be allocated to their customers, depending on where they fall in the categories outlined by the bill.
—Christie Citranglo, editorial associate