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

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Shree Ramkrishna Exports
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-Negative

This past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Bernadette Mack
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive Director

She will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.

Counterfeit Pandora jewelry in bags and boxes
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry Network

Working with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Elie Hannoush
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73

He is remembered for his successful entrepreneurship, generosity, and dedication to his family.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

Morgan Keefe
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education Scholarship

This year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.

The Jewelry Book
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry

“The Jewelry Book” comes out this September.

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Cashier handing Rocksbox bag to customer
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers Downsizes

Rocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.

×

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