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

Karl Getschel and Bob Yanega of Smyth Jewelers
IndependentsAug 14, 2026
Smyth Jewelers to Open Fourth Location

The family-owned jeweler will open a new showroom in Bel Air, Maryland, this fall.

Stock image of a gavel
CrimeAug 14, 2026
Wife of Man Convicted in Jeweler’s Murder Sentenced for Conspiracy

Amanda Ileana Hernandez is married to Carlos Hernandez, one of two men in prison for the 2024 murder of Michigan jeweler Hussein Murray.

Paul Morelli Wavey Vine Earrings
TrendsAug 14, 2026
Paul Morelli’s Latest ‘Wavey Vine’ Earrings Embrace Color

The reimagined jewel, our Piece of the Week, trades the diamonds in the original 1998 design for blue, pink, yellow, and green sapphires.

1872-x-1052-July-ad (1).png
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying Events

Retailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.

Cover.jpg
Supplier BulletinAug 13, 2026
Your Piece Could Be the One Editors Talk About

Sponsored by American Gem Trade Association

Weekly QuizAug 13, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Two Pandora Talisman pendants
FinancialsAug 13, 2026
Pandora’s ‘Talisman’ Collection Shines, Lab-Grown Diamond Sales Fall

In the United States, second-quarter sales were flat amid soft consumer sentiment and lower in-store traffic.

Cuckoo Cuckoo Cadbury Conundrum egg
AuctionsAug 13, 2026
This Gold Cadbury ‘Conundrum’ Egg Set a World Auction Record

The 22-karat gold egg, sold at Batemans Auctioneers in the U.K., was part of a 1980s treasure hunt ad campaign for Cadbury Creme Eggs.

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.

Picture of 2,488 carat rough diamond next to tweezers, a golf ball, and a loupe
SourcingAug 13, 2026
2,488-Carat Diamond, Largest Found in Botswana, Has a New Owner

Lucara Diamond Corp., which recovered the “Motswedi” diamond from the Karowe mine, sold the stone for an undisclosed amount.

John Hardy Heishi Collection Campaign Imagery
CollectionsAug 13, 2026
John Hardy Infuses ‘Icon,’ ‘Heishi’ Collections with Color

The expanded collections now feature hand-cut gemstones like topaz, tanzanite, chrysoprase, chalcedony, smoky quartz, and fire opal.

Jean Dousset Westfield Valley Fair
Lab-GrownAug 13, 2026
Jean Dousset Opens Third Store

The lab-grown diamond jewelry brand’s newest boutique is in Westfield Valley Fair in Santa Clara, California.

Legacy emerald
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’

The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.

Surveillance image of jewelry thieves
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap Scheme

Two suspects offered to trade the woman a “winning” lottery ticket for her jewelry.

The Finsch Diamond Mine in South Africa, owned by Petra Diamonds Ltd.
SourcingAug 12, 2026
Another Diamond Mine Poised to Close

Finsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.

Stock image of gavel, handcuffs, and law books
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of Boss

Michel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.

Beth Miller Frederick Goldman
MajorsAug 12, 2026
Frederick Goldman Names New SVP of Sales

Longtime industry executive Beth Miller has taken on the role.

Verdura unicorn brooch
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction

The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.

Jamie Cygielman
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, Banter

Jamie Cygielman will take on the role on Aug. 24.

Richard Moore
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69

Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsAug 11, 2026
Creative Connecting: How to Sell Colored Gemstones to Gen Z

Duvall O’Steen and Jen Cullen Williams share the best ways to display, present, and explain colored gemstones to younger customers.

NAJA logo
Events & AwardsAug 11, 2026
NAJA Announces Lineup For 2026 Fall Virtual Conference

The mid-year conference for jewelry and watch appraisers will take place Sept. 5-6 on Zoom.

Honest Hands Workbench Ring Builder
TechnologyAug 10, 2026
Colorado Jeweler Launches Customization Tool He Built Himself

Honest Hands Ring Co. Founder Benjamin Bosworth shared his thoughts on jewelry technology and why AI can never replace the human element.

QVC Group logo
MajorsAug 10, 2026
QVC Exits Chapter 11 Bankruptcy, Names New Interim CEO

QVC Group President and CEO David Rawlinson is temporarily being replaced by a familiar face, former QVC CEO Mike George.

State Property Lorenz Station Bracelet
CollectionsAug 10, 2026
State Property Puts a Ripple in the ‘The Voyager’ Collection

The brand also added two one-of-a-kind brown diamond pieces to the “Sanssouci” series of its “Gardens” collection.

Ostbye receiving Vendor of the Year trophy at 2026 IJO show
MajorsAug 10, 2026
And IJO’s 2026 Vendor of the Year Is …

Ostbye took home top vendor honors at the Independent Jewelers Organization’s show, held last month in Kentucky.

1872-x-1052-July-ad (2).png
Supplier BulletinAug 07, 2026
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying Events

Sponsored by Stratus Estate Buyers

Blue Nile President Pamela Cloud
MajorsAug 07, 2026
Retail Veteran Pam Cloud Appointed President of Blue Nile

Cloud, who will officially join Blue Nile on Monday, spent 26 years at Tiffany & Co. and founded jewelry brand Roseate.

×

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