New Orleans economists break down newest financial relief package

On Friday, President Donald Trump signed off on the newest financial relief package totaling more than $480 billion to combat the impacts from the coronavirus outbreak.

According to Greater New Orleans, Inc. President Michael Hecht, $310 billion will be for the Paycheck Protection Program (PPP), and $60 billion for small lenders and community banks.

Hecht said the time is now for small business owners who weren’t able to take advantage of the first relief package, part of the CARES Act, in March.

“The average loan size was about $185,000…which indicates that it was going to small to mid-size businesses upfront,” says Hecht. “It was not just Ruth’s Chris and Shake Shacks who were getting it. But those were the businesses that were able to act fastest because they had relationships with the SBA, or they had a tighter relationship.”

“At the end of the day, I think that everybody who needs funding will get it,” Hecht adds. “It’s going to take successive tranches, and unfortunately, the political reality is that each funding round is politically going to be that much more difficult up in DC.”

You can see a full breakdown of the relief packages on their website here.

Another $75 billion in the relief package will go towards hospitals, $25 billion for COVID-19 testing, and another $60 billion for emergency disaster loans.

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