The Senate and the House have passed an additional $484 billion relief package aimed at refilling the exhausted small business loan program and providing help for hospitals to fund more coronavirus testing. The measure passed the Senate on Tuesday and heads to President Donald Trump for his signature after it was approved by the House. Trump has expressed support for the legislation and is expected to quickly sign it.
The nearly half-a-trillion-dollar relief package will provide $310 billion for the small business loan program, $60 billion for the Small Business Administration disaster relief fund, $75 billion for hospitals, and $25 billion for testing. Economists and health researchers have stated the $25 billion is only a fraction of the cost necessary for accurate testing measures. The previous small-business loan program of $2.2 trillion ran out quickly due to the flood of applications of US businesses just trying to survive the global pandemic.
Included in the relief package is a mandate that requires the Trump administration to establish a national strategy to help states outline their own plans for testing. This is a step in the larger plan to reopen the national economy as safely as possible. Although the package has a mandate for the Trump administration to develop a national strategy, this package does not allocate funds to states to help with reopening measures.
The biggest source of money for most states is sales taxes but with the economy essentially shut down, states are really feeling the hurt. Additionally, states’ second-biggest revenue source is personal income tax which started falling in March, when millions of Americans lost their paychecks and tax withholdings stopped. Adding to states’ money troubles, the tax filing deadline was postponed until July 15 which means states are not seeing the income-tax money. All these combined means each state is feeling the pinch and is more than eager to reopen. Senate Majority Leader Mitch McConnell has suggested that rather than looking to the federal government for help, states should consider filing for bankruptcy although that currently is not a legal possibility for states.
The additional relief package comes on the heels of updated unemployment numbers which claims an additional 4.4 million Americans filed for unemployment last week. In the last five weeks, a total of 26 million Americans filed for unemployment. Prior to the massive US economic shutdown on March 13, 7.1 million Americans were unemployed which leaves the US at a current unemployment rate of 20.6%— the highest level since 1934 which was 21.7%. Additionally, oil prices plunged to a negative $37.63 per barrel earlier this week signifying there is almost no market for oil currently and sellers must pay to store crude oil supplies. The plunge symbolizes the abrupt decline in global demand for oil as the pandemic discourages auto, air, and other travel. However, more recently US oil prices have slightly bounced back with a 25% surge due to tensions in the Middle East.
It can be difficult to make sense of all the new legislation passed in the wake of COVID-19. Contact us to help you navigate through this pandemic and check out our COVID-19 Resources page for more information.
Houston, TX (August 10, 2020) - Calvetti Ferguson has again been recognized as a Top 200 CPA firm in the US by INSIDE Public Accounting and as an IPA 200 fastest-growing firm. This recognition surpasses the firm’s rankings last year as an IPA 300 firm. Read more about Calvetti Ferguson’s 2019 rankings. This is the third year in a row Calvetti Ferguson has made the Top 400 list, and it is the fourth year the firm has been named a fastest growing-firm.
Jason Ferguson, Managing Partner stated “We are honored to be recognized by this ranking and even more excited to have climbed the listing this year. This again is a testament to our team’s hard work and dedication." He adds “As we continue to grow, we strive to provide value to our clients, develop our team members, and make a positive impact on our communities.”
Click here to view the 2020 IPA rankings.
About IPA rankings
The one-of-a-kind IPA 400, recognizing the top U.S.-based accounting firms, is the most comprehensive list of North American public accounting firms available. IPA annually ranks the largest public accounting firms in the U.S. based on participating firm’s net revenues – from the multi-billion-dollar U.S.-based Big 4 to the $5 million firm. Ranking data is captured through IPA’s annual practice management survey and analysis of firms. IPA is the survey leader in data collection for the profession, with more of the largest 500 firms participating than any other survey today and a 92% return rate of participating firms.
About Calvetti Ferguson
Calvetti Ferguson is one of the largest independent accounting and advisory firms based in Texas. We have offices in Houston, Dallas, Fort Worth, and San Antonio. As trusted business advisors to privately held and public companies, private equity funds, family offices, and high-net-worth individuals, we provide assurance, tax, advisory, accounting and technology risk services. We advise beyond accounting to eliminate hurdles, identify opportunities, and ensure the best for our clients and their businesses.
Recognized by Forbes as one of America’s Top Recommended Tax and Accounting Firms, Calvetti Ferguson is also an INSIDE Public Accounting Top 200 and Fastest Growing Firm. Calvetti Ferguson is an independent member firm of PrimeGlobal, the fourth largest association of independent accounting firms with approximately 300 member firms in over 90 countries.
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