Policies & Issues

5 Things Retailers Should Know About the Stimulus Bill

Policies & IssuesApr 01, 2020

5 Things Retailers Should Know About the Stimulus Bill

The CARES Act will provide $2 trillion in aid to keep businesses afloat during the coronavirus pandemic.

20200401_Stimulus_Package.jpg
President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, into law Friday.

New York—The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law Friday by President Donald Trump, providing $2 trillion in aid.

The 880-page act lays out a variety of provisions aimed at keeping individuals and businesses afloat as the U.S. navigates the coronavirus pandemic.

Here are five measures that could benefit retailers.

Tax provisions may allow retailers to retain employees and offset costs.

Tax code can be a tricky subject, so National Jeweler consulted Major Gen. Tim Haake, an attorney in the Washington, D.C. office of international law firm Dentons with a background in taxation. Haake has a Master of Laws degree in taxation from Georgetown University Law Center.

He is also a principal at Haake & Associates, the consulting firm that lobbies in D.C. on behalf of Jewelers of America and its political action committee, JAPAC.

He said a major measure of the bill for retailers to keep in mind is the employee retention tax credit, which will make it easier for employers to hold onto their workers by providing a 50 percent refundable payroll tax credit.

Retailers are eligible if business has been fully or partially suspended as a result of a government order, or if the business has experienced a 50 percent decline in gross receipts.

Something jewelers in particular may want to take note of, said Haake, is the $15 billion in funds available to retailers that took on remodeling projects during 2018 and 2019, available in the form of tax refunds.

As a result of a glitch in the 2017 tax reform law, affected companies overpaid federal taxes over the past two years.

Collection of federal payroll taxes is delayed until 2021, with 50 percent due then and 50 percent in 2022.

Deductions for interest paid on business loans also have expanded.

In addition, net operating loss carryback has been restored for tax years 2018-2020, which means companies will be able to carry back losses to profitable years up to five years prior and obtain refunds.

Haake broke down the basics of how this works.

For example, let’s say a retailer is not making a profit as a result of the impact of the coronavirus, but did make a profit in the last five years.

The provision allows retailers to go back to a year in which they made a profit and paid a tax and receive a refund for some of the tax paid.

There are some technical exceptions if averaging

the five years, said Haake, but an accountant will know where to look and how to assist, which brings up a point National Jeweler columnist Sherry Smith made in her latest “On Data” article.

Jewelers should consult their corporate attorney, certified public account and payroll company (if they use one) to help them decode CARES.

It may seem complicated, but actually, the act was “crafted in a way to eliminate technicalities and get money out there quickly,” said Haake.

Access to loans for small businesses has been expanded.

The Small Business Administration (SBA) set up a $350 billion Paycheck Protection Program that offers forgivable loans to cover up to 250 percent of payroll for small businesses with 500 or fewer employees.

In addition, the Federal Reserve, backed by the Federal Reserve Act, has the power to buy debt or extend loans to businesses of all sizes in extenuating circumstances, with the approval of the Treasury.

The regulatory body will do just that, receiving $500 billion to support credit facilities and leveraging that to provide more than $4.5 trillion in support.

More details on Federal Reserve credit programs will be available in the coming days.

In addition, Economic Injury Disaster Loans from the SBA are available to businesses with fewer than 500 employees and, now, also to sole proprietors and Employee Stock Ownership Plans, a type of company that sets up an employee stock ownership trust.

There is also a new emergency grant available allowing a business that has applied for a disaster loan to get an immediate advance of up to $10,000, which can be used for payroll purposes.

The advance is not required to be repaid, even if the request for a loan is denied.

Unemployment benefits have been expanded.

The CARES Act expands unemployment benefits, including to those who are self-employed and to independent contractors.

Individuals qualify for unemployment if they are able or available to work, but cannot for reasons related to COVID-19.

Coronavirus-related reasons include school closures, caring for a sick family member, or if their place of employment is closed or can’t be reached, like if a stay-in-place order is in effect.

The coverage applies to those unable to work for coronavirus-related reasons beginning on or after Jan. 27 and ending on or before Dec. 31, 2020.

Individuals who qualify for unemployment will receive an additional $600 on top of the amount given by the state in which they reside.

The plan, known as the Federal Pandemic Unemployment Compensation program, will provide unemployment insurance for 39 weeks, an extension on the standard 26 weeks.

Payments will be made available from the first week of unemployment, eliminating the usual one-week delay.

Individuals will receive a one-time check.

Checks start at $1,200 and go up or down from there, depending on how much individuals earn and how many dependent children they have.

Individuals making $99,000 or above and couples making $198,000 and above who have no dependent children will not receive a check.

An individual’s income will be determined using 2019 tax returns or 2018 returns if the taxpayer hasn’t filed their 2019 taxes yet.

There are a number of calculators available online to help people determine how much they will get, like this one from H&R Block.

There are resources available to individuals and retailers in need of guidance.

The CARES Act is a lengthy one with a long list of provisions and complicated exceptions.

But, “life is complicated,” said Haake. “Rely on whoever has advised [you] over the years in terms of how to take advantage of these provisions.”

Jewelers of America, which owns National Jeweler, compiled a resource guide breaking down the provisions and highlighting especially important information.

“We’ve been trying to provide members and the industry with the best information we have on hand,” CEO David Bonaparte said in an interview with National Jeweler.

He encouraged jewelers to reach out to the industry’s trade organizations with any questions and, more importantly, to stay on top of things.

“Don’t shutter and wait for this to go away. Stay active in the marketplace,” he said, advising jewelers to keep in touch with customers and vendors, and their banks.

The National Retail Federation also provided an overview of the bill on its blog.

The Small Business Administration put together a list with guidance for small businesses and loan resources.

The SBA is reachable on a local level as well, with 68 district offices, and works alongside resource partners.

The SCORE Association is a nonprofit comprised of more than 13,000 business counselors volunteering to offer their services.

The Small Business Development Centers’ office is also available to support small businesses.

Women-owned small businesses can reach out to The Women’s Business Centers, and veterans can contact the Veterans Business Outreach Centers.

In addition, the Centers for Disease Control and Prevention has a guide available for businesses and employers.
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

London Diamond Bourse President Charlotte Rose
SourcingJul 02, 2026
London Diamond Bourse Elects First Female President

Charlotte Rose said her election is “a sign that this is an industry capable of change.”

Bracelets_1872_1052.jpg
Supplier BulletinJul 02, 2026
Elevating Retail Showcases with Today's Necklace & Bracelet Trends

Sponsored by Rio Grande Jewelry Supply

Oscar Heyman Flag Brooch
TrendsJul 02, 2026
Oscar Heyman’s Flag Brooch Celebrates America

The American jewelry house, founded by Latvian immigrants, has been creating American flag brooches since 1917.

Brought-To-By-Article-Top-Image.jpg
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center Stage

Colored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.

D. Geller & Son store mural
IndependentsJul 02, 2026
D. Geller & Son Partners with KSU Art Students on Store Mural

The artwork celebrates the Atlanta jeweler’s legacy and symbolizes its commitment to supporting local artists and its community.

Weekly QuizJul 01, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Hand taking jewelry out of jewelry box
Events & AwardsJul 02, 2026
Stratus Estate Buyers Offers Jewelers Turnkey Buying Events

Its team can evaluate jewelry and watches, as well as luxury handbags, artwork, and collectibles.

Hand holding a gas pump
SurveysJul 01, 2026
Consumer Confidence Ticks Up in June

Falling oil prices were a factor in the slight month-over-month improvement.

DCA-NJ-article-1872x1052-060826.jpg
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce Solutions

DCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.

Rio Grande Millgrain Wedding band and Round Diamond Engagement Ring
CollectionsJul 01, 2026
Rio Grande Launches First Finished Bridal Collection

The new offering comprises more than 120 bridal and engagement ring styles with natural and lab-grown diamonds.

Rockefeller Center Rink Rolex Clock
WatchesJul 01, 2026
Rolex Unveils Clock at Rockefeller Center

The clock is part of the celebration for the soon-to-open Rolex headquarters on New York City’s Fifth Avenue.

Kristen Cannon
IndependentsJul 01, 2026
Kristen Cannon of Valobra Master Jewelers Dies at 49

The public relations professional is remembered for her benevolent generosity and unwavering commitment to those around her.

G Shock Pokemon watch in Pokeball
WatchesJun 30, 2026
Pokémon Fans Will Want to Catch This New G-Shock Watch

The new watch commemorates Pokémon’s 30th anniversary.

Saks Fifth Avenue door sign
MajorsJun 30, 2026
Saks Global Emerges From Bankruptcy With New Name

The luxury retailer is now called Exemplar Luxury Group.

Jade Ruzzo Lady Collection Compact Mirror Necklace
CollectionsJun 30, 2026
Jade Ruzzo’s New Collection Embodies the Art of Being a Lady

The “Lady” collection is a new take on old beauty standards with gemstone-adorned hair pins and combs, a compact mirror necklace, and more.

Blue Nile Montana sapphire jewelry
SourcingJun 30, 2026
Blue Nile Introduces Montana Sapphire Collection

The new line is included in the e-tailer’s curation of jewelry celebrating America’s 250th anniversary.

American Gem Society
GradingJun 30, 2026
AGS Opens 2026 Recertification Exam

All active members who earned their credential or designation before Dec. 1, 2025, are required to recertify.

Briony Raymond Carousel Collection Campaign Imagery
CollectionsJun 29, 2026
Briony Raymond’s New Collection Is a ‘Carousel’ of Hard Stones

The new jewelry collection uses a colorful palette of onyx, malachite, tiger’s eye, mother-of-pearl, lapis, turquoise, and coral.

Lee Michaels Fine Jewelry Ridgeland Mississippi exterior
IndependentsJun 29, 2026
Look Inside Lee Michaels’ Revamped Mississippi Flagship

Lee Michaels Fine Jewelry is celebrating 30 years in the Ridgeland, Mississippi community.

Sean Milliner
GradingJun 29, 2026
National Rarities Announces New Gemology Manager

Sean Milliner has joined the company.

GIA London Canary Wharf campus
GradingJun 29, 2026
GIA to Open New London Campus

Classes will begin in August at GIA’s new Canary Wharf location.

Hogback diamond ring
AuctionsJun 26, 2026
‘Hogback’ Diamond Ring Finds a New Home

A ring set with “hogback” diamonds, an early stone cut dating to around the 16th century, sold for more than $20,000 at a U.K. auction.

Kris Averi Rainbow Prism Thorn Ring
CollectionsJun 26, 2026
Strength Is Sharpened Into Beauty in Kris Averi’s ‘Prism Thorn’ Ring

The rainbow version of the ring, our Piece of the Week, features angel-cut, octahedral lab-grown sapphires designed to be worn as armor.

A tray of Rembrandt charms
MajorsJun 26, 2026
Rembrandt Charms Debuts ‘Charms That Give Back’

The new initiative donates a portion of the proceeds from select charms to charitable causes.

Bernard James Knickerbockers Special Edition Aura Band
TrendsJun 26, 2026
Bernard James Celebrates Knicks’ Win with Ring

The Brooklyn-based jeweler created a limited-edition version of its “Aura” eternity band, set with gemstones in the team’s colors.

Brandee Dallow
SourcingJun 25, 2026
ICA Names Brandee Dallow as CEO

Dallow will lead the International Colored Gemstone Association, effective July 6.

SCAD Jewelers Mutual Studio exterior
EditorsJun 25, 2026
Out & About: How Jewelers Mutual, SCAD Are Tackling the Bench Jeweler Shortage

Senior Editor Lenore Fedow headed to Savannah to learn more about the 10-year, $10 million partnership between JM and the art school.

Mejuri Steel Collection Campaign Imagery
CollectionsJun 25, 2026
Mejuri Experiments With Steel

Its new capsule jewelry collection features gold-finished stainless steel pieces designed for a maximalist look without a luxury price tag.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy