News – USA – White House adjusts rules to encourage more small business lending: live updates

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Coronavirus cases are falling and the vaccination surge is gaining momentum Is an economic upswing possible?


Aiming to steer more federal aid to the smallest and most vulnerable businesses, the Biden government is changing the rules of the paycheck protection program, increasing the amount sole proprietorships are entitled to, and imposing a 14-day credit freeze Companies with 20 years or more employees

The freeze will take effect on Wednesday, the Small Business Administration is due to announce on Monday

In December’s economic aid package, Congress allocated $ 284 billion to restart the aid program.Banks and other financiers who provide the government-backed loans have disbursed $ 134 billion to 1.8 million businesses since resumption of lending in the last month The money is said to be given if the recipients adhere to the program rules

Companies with up to 500 employees are generally eligible for the loans, although second-draw loans – available to those whose sales have dropped 25 percent or more in at least one quarter since the coronavirus pandemic began – are on companies with 300 or more restricted, fewer employees are restricted.The 14-day moratorium is designed to draw lenders’ attention to the smallest businesses, according to administrative officials who spoke to reporters at a press conference on Sunday on condition that they not be named

Most Small Businesses Are Sole Proprietors That Employ Only The Owner For such businesses, including sole proprietorships and independent contractors, a major barrier to raising aid has been a program rule whose loan size was based on the annual profit they had on their taxes This made unprofitable companies ineligible for aid and left thousands of applicants for tiny loans – some as low as $ 1

The new formula, which Small Business Administration officials said will be released soon, will instead focus on gross income.This calculation, performed before many expenses are subtracted, allows unprofitable businesses to opt for credit qualify

The agency is also amending some other program rules to expand the eligibility of those with recent convictions for non-fraudulent offenses can now apply, as can those who are in default or in default with The Agency Also updated their guidelines to clarify that business owners who are not US citizens but legal residents are eligible for loans

Stocks on Wall Street fell on Monday after European and Asian indices fell U.S. Government bond yields continued to rise as investors expected faster economic growth and inflation

Treasury 10-year bond yields rose 136 percent, their highest level in a year before retiring, the yield has risen 30 basis points for the past three weeks this month

The sharp rise in yields and inflation expectations in the markets has sparked a debate over whether the Federal Reserve will respond by pulling back some monetary stimulus and reducing the easy-money policies that have helped drive stock markets to keep going for much of the pandemic

“Investors are increasingly confident that the global V-shaped recovery is recovering so strongly that the emerging problem is not growth but inflation,” write analysts at ING Bank. “There are increasing parallels to similar events in the Drawn in 2013, “they wrote as traders panicked in a” tantrum “over the central bank’s easing of asset purchases, and yields soared

Fed policymakers have announced that they will look beyond a short-term spike in inflation and keep monetary policy loose, but not everyone is buying this news, especially as the Biden administration is pushing a $ 9 trillion economic aid package

“The bond market continues to wire an increasingly confident message about the global economy and skepticism about the Fed’s guidance,” JPMorgan Chase analysts wrote in a note over the weekend

Boeing stocks bounced back from early losses and rose slightly, the aircraft maker said 128 of its 777 jetliners worldwide should be grounded until inspected after an engine failure on a United Airlines flight over Colorado -Monthly ban of the 737 MAX emerged

Oil prices rose on Monday’s West Texas Intermediate futures, the US. The benchmark rose more than 2 percent to over $ 60 a barrel, following last week’s volatility when a winter storm disrupted Texas oil production
Natural gas futures for delivery in March fell 38 percent Natural gas price soared a week ago as the storm spiked demand for natural gas Natural gas is the largest source of electricity in Texas

The US. The economy remains stuck in a pandemic winter of closed storefronts, high unemployment, and sluggish employment growth.But on Wall Street and Washington, attention is shifting to a fascinating, if vague, prospect: a post-Covid boom

In the past few weeks, economists have begun to speak of an upswing that will lower unemployment, raise wages and potentially fuel years of stronger growth, Ben Casselman reports for The Times

There is evidence that the economy has turned a corner: retail sales have increased last month New jobless claims have been falling since early January but remain high Business investment measures have increased

Economists polled by the Federal Reserve Bank of Philadelphia earlier this month predicted that US. Output increases 45 percent this year, which would make it the best year since 1999. Goldman Sachs economists predict economic growth will be 68 percent this year and that the unemployment rate will drop to 4.1 percent by December, a level post-last Recession lasted eight years

The growing optimism is based on several factors Coronavirus cases are falling The vaccine rollout is gaining momentum And especially because of the trillion dollars in federal aid, the economy seems to have seen less structural damage last year – in the form of business failures, home foreclosures and Personal bankruptcies – to have survived, as many people feared last spring

Ultimately, consumers are sitting on a trillion dollar mountain of cash due to months of lockdown-induced savings and successive rounds of stimulus payments

“There will be this big boom when the pent-up demand comes through and the economy opens up,” said Ellen Zentner, Head of U.S. Economist for Morgan Stanley “There is a lot of purchasing power that we have transferred to households to fuel this pent-up demand”

It is the first day of the DealBook DC Policy Project where senior policy makers and business leaders meet to discuss priorities for the advancement of the country and the world Today, speakers consider the shape of economic recovery, how to do that Holds Power to Account, the Future of Travel and Where to Focus the Economic Fund Register here to attend for free from anywhere in the world

In addition to the $ 19 trillion economic aid plan that is running through Congress, the White House is raising the prospect of yet another major spending package focused on infrastructure. Although the economy is recovering faster than expected, it remains fragile and inconsistent This is the path navigated by Janet Yellen, the former chairman of the Federal Reserve who took office as Treasury Secretary last month

Letitia James has more high-profile cases and investigations on her plate today than most attorneys will manage in her lifetime The way she uses her power – from filing Amazon’s work safety lawsuit to exposing underreporting of deaths in nursing homes, investigation of former President Donald J Trump’s business relationships and many other measures also show how states can shape national politics

Last year was “the toughest year in Delta history,” according to Ed Bastian, the airline’s chief executive officer. The airline reported a loss of more than $ 12 billion when travel stalled during the pandemic economic impact of the pandemic, the aviation industry is at the center of health policy debates, e.g. B. whether masks are compulsory and coronavirus tests are required prior to travel

Since stepping down as Microsoft CEO in 2014, Steve Ballmer has been the team owner and founder of USAFacts, a non-profit group dedicated to presenting data about the United States in easy-to-read formats. Find out what the government is really doing with taxpayers’ money “and highlight the areas where spending can have the greatest effect.”
The House is expected to pass President Biden’s $ 1 9 trillion Stimulus Bill by the end of the week, likely in a party line vote that the Senate may take shortly thereafter

Federal Reserve Chairman Jay Powell testifies to Congress Tuesday and Wednesday and is likely to highlight the need for more economic stimulus

On Tuesday, HSBC is reporting profits, and the bank may also announce steps to move top executives from London to Hong Kong, the Financial Times reports

Other revenue highlights include Home Depot Tuesday, Nvidia Wednesday, Airbnb and Salesforce Thursday, and Berkshire Hathaway Saturday, though Warren Buffett’s widespread annual letter on the state of the economy, markets, and politics is expected

The price of Bitcoin set another record over the weekend and briefly rose above 58$ 000 and Elon Musk tweeted about it, cementing his status as one of the most prominent supporters of Crypto

Tesla will make more profits buying bitcoin than selling electric cars, according to a research report by Daniel Ives of Wedbush Securities, a few weeks ago the company said it bought $ 1.5 billion in bitcoin for diversification Its balance sheet Bitcoin’s rapid surge since then translates into a profit of around $ 1 billion, at least on paper That’s more than Tesla made from selling cars last year when it first made an annual profit (Tesla also made more of another tangential deal, selling renewable energy loans to other automakers)

Will more companies now follow Tesla’s lead? Such gaudy numbers could make finance chiefs think twice about the cash and low-yield bonds on their balance sheets

“It was clearly a good initial investment and a trend that we expect could affect other public companies in the next 12 to 18 months,” said Mr Ives wrote He believes that less than 5 percent of public companies will convert corporate funds into cryptocurrency, which would still be a huge leap

There is great skepticism about the Bitcoin rally, including from the President of the Federal Reserve Bank of Boston and the managing director of Citadel, Kenneth C. Griffin and even when he tweeted approvingly about cryptocurrencies, Mr. Musk noted that prices “seem high” last May he said the same thing about Tesla’s shares (“too high”) – they have risen more than 400 percent since then

The McKinsey & Company has become a hotspot for controversy in France after the public learned of millions of euros worth of contracts to plan vaccine distribution, ridiculed for being way too slow, Liz Alderman reports for the New York Times

The contracts – a total of 11 million euros3 million), of which 4 million euros went to McKinsey, were approved last week by a parliamentary committee The government of President Emmanuel Macron, which has been under fire for months for dealing with the Pandemic Stumbled, had to admit that she reached out to outside consulting firms for help managing the response

called on McKinsey to help determine the distribution channels for the Pfizer and Moderna vaccines, which must be kept at temperatures as low as minus 80 degrees Celsius during transport and storage. The company would compare France’s performance with other European countries McKinsey experts would also help coordinate a Vaccination Task Force made up of officials from a wide variety of agencies, with some decision-making chains involving up to 50 agencies

At the beginning of January France had vaccinated only “several thousand people” according to the health minister, compared with 230000 in Germany and more than 110000 in Italy

Further contracts for Accenture, the global information technology consultancy, to implement the campaign monitoring systems and for two French consultancies, Citwell and ILL, to assist with “logistical support and distribution of vaccines” ”

The government’s strategy focused on delivering the vaccines to 1000 distribution points in France, from where the cans would be sent in supercooled trucks to nursing homes, clinics and local mayor’s offices.In Germany, the program was simpler: the authorities decided to give the vaccine to 400 regional centers

France had a million doses of vaccine in hand by the first week of January, but the delay in getting them into people’s arms became public knowledge The pace has picked up recently, but according to a New York Times database, the 7th Given doses per 100 people, France still lags behind neighbors like Germany and Italy

Small Business, Joe Biden

News – US – White House Adjusts Rules to Promote More Small Business Lending: Live Updates

Source: https://www.nytimes.com/live/2021/02/22/business/stock-market-today