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

20251124_MNQ social media etiquette header.jpg
Recorded WebinarsNov 24, 2025
Watch: Top Tips for Social Media Etiquette

Social media experts spoke about protecting brand reputation through behaving mindfully online.

Breitling house of brands
WatchesNov 24, 2025
Breitling Reveals Plans for Gallet, Universal Genève

In 2026, the three will come together as “House of Brands,” with Gallet sold in Breitling stores and Universal Genève sold separately.

Cynthia Erivo in Muse’s Have a Heart x Cynthia Erivo Collection
CollectionsNov 24, 2025
Muse Debuts a Wicked 'Have a Heart x Cynthia Erivo' Sequel

The second drop, which includes more Elphaba-inspired pieces from additional designers, will continue to benefit nonprofit Dreams of Hope.

Recipients Collage 2025 - NJ (1872 x 1050 px) (1872 x 1052 px).png
Brought to you by
Impacting Tomorrow Today

How Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.

J.R. Dunn Jewelers employees
IndependentsNov 24, 2025
J.R. Dunn Jewelers Names New President

Second-generation jeweler Sean Dunn has taken on the role.

Weekly QuizNov 20, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Amber Pepper
MajorsNov 21, 2025
Natural Diamond Council Names New CEO

Amber Pepper’s main focus will be on digital innovation and engaging younger consumers.

Origin De Beers Group logo
SourcingNov 21, 2025
De Beers’ Branded, Traceable Diamonds Roll Out to 19 Retailers

Called “Origin by De Beers Group,” the loose, polished diamonds are being sold in a total of 30 stores in the United States and Canada.

roseco-catalog.png
Brought to you by
Roseco Releases New Full-Line Catalog

Roseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.

Melissa Kaye Rocky Infinity Emerald Necklace
CollectionsNov 21, 2025
Piece of the Week: Melissa Kaye’s ‘Rocky Infinity’ Necklace

The lariat necklace features a 4.88-carat oval-cut Zambian emerald in 18-karat yellow gold.

Phillips auction of The Vanderbilt Sapphire brooch
AuctionsNov 20, 2025
Vanderbilt Jewels Shine at Phillips Sale, Pink Diamond Withdrawn

A 43-carat sapphire brooch from the Vanderbilt collection was the top lot of the Geneva sale.

Rebecca Rau Jewels Green Flame Necklace
CollectionsNov 20, 2025
Rebecca Rau Jewels Debuts With ‘Then & Now’ Collection

Rau is a fourth-generation art and antique dealer from M.S. Rau gallery whose first jewelry collection merges artifacts with modern design.

La Joux-Perret manufacturing facility in La Chaux-de-Fonds, Switzerland
WatchesNov 20, 2025
LVMH Takes Minority Stake in Citizen Group-Owned Movement Maker

La Joux-Perret is based in La Chaux-de-Fonds, Switzerland, and makes solar quartz as well as mechanical watch movements.

Julia Griffith
GradingNov 20, 2025
Julia Griffith Joins SSEF as Head of Education

She previously taught at Gem-A and is the founder of The Gem Academy.

Helena Bonham Carter in Larkspur & Hawk Once Upon a Time Campaign
CollectionsNov 19, 2025
Larkspur & Hawk Celebrates 25 Years With Helena Bonham Carter Campaign

The British actress and her daughter modeled pieces from the brand’s new “Palette” capsule for its “Once Upon a Time” holiday campaign.

Google reviews on a phone screen and a laptop
TechnologyNov 19, 2025
Google Has a New Form for Reporting ‘Review Bombing’ Attacks

Plus, the tech giant shares the steps retailers should take if they believe they’re a victim of a review extortion scam.

Shaftel Diamonds logo and jeweler’s bench
IndependentsNov 19, 2025
Houston Jeweler Keith Shaftel Retires, Next Generation Steps In

Danny and Gaby Shaftel are now Shaftel Diamonds’ CEO and chief operating officer, respectively.

Midas chain mini studs
TrendsNov 19, 2025
Midas Chain Releases 2025 Holiday Style Guide

The jewelry manufacturer’s seasonal offering features its new “Melodie” bangles, as well as mini stud earrings and layering pieces.

Jewelry from NYC Jewelry Week 2024
Events & AwardsNov 18, 2025
NYC Jewelry Week 2025: 12 Must-See Events

With more than 140 activations taking place in New York City now through Nov. 23, these 12 events are can’t-miss moments.

Lugano Diamonds Greenwich Connecticut store
MajorsNov 18, 2025
Lugano Diamonds Files for Bankruptcy, Looking for Buyer

The Chapter 11 filing follows the resignation of CEO Moti Ferder, who stepped down after an investigation into the company’s finances.

Kathleen Ryan Dreamhouse Bad Fruit sculpture
Events & AwardsNov 18, 2025
A Giant, Bejeweled Moldy Berry Is on Display in LA

The artwork is part of an exhibition featuring works by Kathleen Ryan, an artist known for her gemstone-studded rotting fruit sculptures.

Rough diamonds from the Gahcho Kué mine in Canada
SourcingNov 18, 2025
Another Diamond Company CEO Steps Down

Mark Wall, president and CEO of Canadian mining company Mountain Province Diamonds, will vacate his position next month.

Suspects in murder of father and son jewelers in Chicago
CrimeNov 17, 2025
Police Searching for 2 Suspects in Murder of Father, Son Jewelers

Faustino Alamo Dominguez and his son, 25-year-old Luis Angel Alamo, were gunned down following an armed robbery at their jewelry store.

Jeffrey Bennett
GradingNov 17, 2025
IGI Announces New President of North America

Tiffany & Co. veteran Jeffrey Bennett has stepped into the role.

Robbins Brothers Pasadena store exterior
MajorsNov 17, 2025
Look Inside Robbins Brothers Fine Jewelers’ New Pasadena Flagship

The showroom is located in a historic 1920s building in the Playhouse District.

Napoleon Bonaparte diamond brooch
AuctionsNov 14, 2025
Napoleon’s Diamond Brooch Blows Away Auction Estimates

A buyer paid $4.4 million for the piece, which Napoleon wore on his hat for special occasions and left behind when he fled Waterloo.

Buccellati Étoilée earrings
FinancialsNov 14, 2025
Richemont’s Q2 Jewelry Sales Up 12%

Plus, how tariffs and the rising price of gold are affecting its watch and jewelry brands.

Silvia Furmanovich x Mellerio Butterflies in Flight Jewelry Box
CollectionsNov 14, 2025
Piece of the Week: Silvia Furmanovich’s ‘Butterflies in Flight’ Jewelry Box

Furmanovich designed the box to hold Mellerio’s “Color Queen,” a high jewelry collection consisting of 10 rings.

×

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