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

Edina Kiss Popsicle Pendant and Karina Choudhrie Ice Cream Charm
TrendsJul 31, 2026
These Pieces of the Week Are Sweet

Edina Kiss’ “Popsicle” pendant and Karina Choudhrie’s “Ice Cream” charm satisfy that summer craving for a sweet piece of jewelry.

Macy’s Herald Square store sign
MajorsJul 31, 2026
Macy’s Iconic Red Shopping Bag Sign Torn Down

The massive billboard has been in the same spot on the department store’s Herald Square flagship store for decades.

Gemfields emeralds
SourcingJul 31, 2026
Gemfields’ H1 Revenue Jumps 72%

The miner’s ruby and emerald auctions brought in a combined $102.9 million.

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.

Stock image of a polished diamond being held by tweezers
SourcingJul 30, 2026
De Beers Sale in ‘Final, Most Challenging’ Phase, Anglo CEO Says

The goal is for the De Beers sale to be finished by the second half of 2026, with the subsequent approvals process expected to take a year.

Weekly QuizJul 30, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Hands pushing shopping cart
SurveysJul 30, 2026
Consumer Confidence Slips in July

Survey respondents were concerned about the rising prices of food and groceries as well as unemployment.

Paola De Luca Presents Trendvision Book
Events & AwardsJul 30, 2026
Vicenzaoro Releases 2026 Education Lineup

The trade show, slated for Sept. 4-8 in Vicenza, Italy, will feature sessions on trends, AI, gemology, and manufacturing.

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.

Jewels by Grace Hillsborough Show
Events & AwardsJul 30, 2026
Hillsborough Show Moves to New Location for 2026

The public shopping event featuring art, jewelry, watches, and rare collectibles, will take place in Santa Clara, California, this fall.

Endiama Commercial Director Elton Escrivão at the 2026 African Mining Indaba
EditorsJul 29, 2026
Q&A: The Past and Future of Angola’s Diamond Industry

Endiama Commercial Director Elton Escrivão knows people have a lot of misperceptions about Angola. He wants to change that.

Kevin Reilly PGI USA
MajorsJul 29, 2026
Kevin Reilly Retires After 39 Years in the Jewelry Industry

Reilly has been with PGI USA for the last 20 years, leading partnership development and professional education.

Pomellato Mandala Chromia necklace
FinancialsJul 29, 2026
Kering’s H1 Jewelry Sales Up 14%

Boucheron reached record sales while Pomellato found success in its signature collections.

United Flags of Fashion Arkansas Flag By Lauren Harwell Godfrey
Events & AwardsJul 29, 2026
Lauren Harwell Godfrey Designs a Flag for Arkansas

She was one of more than 120 American designers who created flags for the “United Flags of Fashion” project led by CFDA and Vogue.

The Retail Smiths partner and National Jeweler columnist Peter Smith 
ColumnistsJul 28, 2026
Peter Smith: Why Your Job Postings May Be Working Against You

Smith reveals the method The Retail Smiths use to help retailers and vendors write better job postings.

Tiffany & Co butterfly necklace
FinancialsJul 28, 2026
Tiffany & Co., Bulgari Lead the Way for LVMH in H1

LVMH’s jewelry and watch brands outperformed the company’s other divisions in an environment the company described as “disrupted.”

Lionheart Sacred Heart Charm Necklace
CollectionsJul 28, 2026
Lionheart’s New Collection Unites Spiritual Iconography

“Sacred Heart” features symbols like crosses, angel wings, the Star of David, and the evil eye as a representation of coexistence.

Events & AwardsJul 28, 2026
The Edge Funding 2 Scholarships Via 24 Karat Club SEUS

The scholarships will go to early-career professionals looking to study gemology, bench work and jewelry design, or store operations.

Mikimoto L'éclat high jewelry brooch
SurveysJul 27, 2026
Jewelry Leads Luxury Market Amid Stabilization, Bain Says

Bain & Company delved into the trends shaping the luxury market, the impact of AI, and more in its recent study.

Harvard Rubies Exhibit The Soul of Flame II Brooch by Austy Lee
SourcingJul 27, 2026
‘Rubies’ Goes on Display at Harvard Museum

The exhibition reveals the gemology, geology, and cultural history of the iconic red gemstone.

Jorge Adeler Gods & Heroes coin pendant
TrendsJul 24, 2026
Amanda’s Style File: Ode to ‘The Odyssey’

From coin pendants to diamond shields, these old world-inspired jewels are the perfect accessory for an epic journey.

Courtney Leidy Amethyst Silk Cord Pendant
TrendsJul 24, 2026
Courtney Leidy’s Silk Cord Pendants Center Unexpected Pairings

Our Piece of the Week pairs a checkerboard-cut amethyst with an ivy green silk cord.

NJ Article image.png
PodcastsJul 23, 2026
Episode 7: Reinhold Jewelers on the Power of Relationships

Mildred Marcano Abrams and Yael Reinhold join the podcast to talk community connections, holiday plans, and preserving Reinhold’s legacy.

Trucks at De Beers’ Orapa mine in Botswana
SourcingJul 23, 2026
De Beers’ Production Jumps 88 Percent in Q2

Production also was up in the first half of 2026 but is expected to “substantially” decrease in H2 as two key mines undergo maintenance.

Silvia Furmanovich Enchapado en Tamo Wooden Wheat Straw Sun Earrings
CollectionsJul 23, 2026
Silvia Furmanovich’s New Collection Travels Back to the 1920s

“Art Deco” fuses ancestral techniques, rare materials, and modern perspectives as a tribute to the optimism and curiosity of the movement.

Sissy’s Log Cabin Saracen Casino
IndependentsJul 23, 2026
Sissy's Log Cabin Opens Casino Store

The jeweler’s newest store is inside Arkansas’ Saracen Casino Resort.

Kate Spade New York watches
WatchesJul 23, 2026
Movado Inks Licensing Deal With Kate Spade New York

The watch company will design, manufacture, and distribute Kate Spade New York watches.

Stock photo of loose polished diamonds
Policies & IssuesJul 22, 2026
Trump to Put 50% Tariff on Canadian Goods

The higher tax is set to go into effect in August and will apply to loose polished diamonds as well as precious and base metals jewelry.

×

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