On 17th of April 2020, Under CARES ACT which is also known as Coronavirus Aid, Relief, and Economic Security Act, US announced its biggest ever financial aid to overcome and stabilize the economy with the unprecedented band-aid which is currently suffering from COVID-19 pandemic. The stimulus package is double the amount that was passed in the 2009 financial crisis.
To give the economy a spurting restart US government focused more on individuals/families. As Americans are staying at home, which has directly reduced usage of vehicles, in turn, it has directly affected the ethanol producers due to a reduction in demand for fuel represented by Renewable Fuels Association (RFA). Several industries have been hard hit by this pandemic, they witness the highest plunged in share price in history, the US government decided to inject financial aid to affecting industries including Cargo, commercial, and airlines.
Below are the important facts;
30% of the share package is distributed to Individuals/Families which is approx. $603.7B; 25% of share package for Large Corporations which is approx. $500B;19% for the small business which is approx. $377B;17% for State & Local government which is approx. $339.8B and $179.5B which is 9% of the package will be distributed to Public Services.
Apart from the above USDA (United States Department of Agriculture) trying to cover and provide fund support to “small farmers as wells as larger farmers”. Funding for the immediate aid programmed will be pulled together from various streams. It is anticipated that going forward additional support of aid will be required.
-by Niyati Bhagat