Despite the high rates of infections and deaths, Donald Trump stated that the United States is coping with the pandemic very well. However, the use of payday loans given the paycheck courts also have a direct impact on the country’s economy. People increasingly began to turn to legal organizations where lenders offer acceptable terms when using payday loans.
Positive Trend in the Economy
One of the consequences of the pandemic for Trump is reversing the positive trend in the economy. The president mentioned it as the main achievement of his first term in the White House. Last summer, the United States recorded the longest cycle of GDP growth in history. It lasted over ten years, that is, began under President Barack Obama. The share of unemployment fell to its lowest level in 50 years last year, and American wages rose. In these terms, even a simple 200 dollar loan could positively affect the financial situation to the needs of every citizen.
Payday Loans As Additional Help
Americans increasingly began to resort to lending. Hence, their attitude towards payday loans is quite loyal, and if they need larger loans, they can often get a title loan. This specificity of acquiring additional funds does not have a negative impact on the US economy as a whole. Note that against the backdrop of the COVID-19 pandemic in the second quarter, the American economy fell by almost 33% at an annualized rate. This recession has canceled all economic growth since 2015 and became a new anti-record. Since then the US government began collecting such statistics.
Trump Announced the Possibility of a Second Wave of Cash Payments to Americans
The US authorities are seriously discussing the possibility of a second wave of lump-sum cash payments in the country as payday loans. At the same time, he stressed that he advocates payments directly from the federal government. The owner of the White House expressed dissatisfaction with the way the payday loans were made the first time. Then the money went first to the state authorities, and they themselves distributed it to the population. However, according to Trump, in some states, it took a very long time due to old technology.
Trump signed over $ 2 trillion into the Stimulus Act to tackle the impact of the coronavirus pandemic. The signed document provides for the payment of unemployment benefits, assistance to hospitals, assistance to business. Citizens became able to receive lump-sum payments of about $ 1.2 thousand per person.
Payday loans have played an important role here in their turn. Payday loans acquisition has practically entrenched the problem of lack of money in the United States.
Assistance to the Needy Citizens
The Government of Canada has taken immediate action to help Canadian businesses hit by the global COVID-19 pandemic. The Government intends to help employees keep their jobs and increase cash flow providing payday loans.
While some parts of the US economy are recovering, others continue to grapple with shrinking revenues, rising costs and uncertainty due to the COVID-19 pandemic. For this reason, the government plans to introduce new targeted support to help hard-hit businesses and other organizations experiencing falling revenues. The government plans to pass legislation to provide the support that will help these businesses survive the second wave of the virus. The government covers the costs so they can continue to serve their communities, and be prepared for a strong recovery, including payday loans.
What Does the Government Offer?
In addition to quick cash payments such as payday loans, a New Emergency Rental Subsidy in Canada is being provided. The main principle of payday loans is to provide easy and convenient support for eligible citizens affected by COVID-19. For example, the rental subsidy will be provided directly to tenants and property owners.
The new rental subsidy will support businesses, charities, and nonprofits. These have been hit by a drop in income by subsidizing a percentage of their expenses on a sliding scale up to a maximum percentage of eligible expenses.
An additional 25 percent Canadian rental subsidy for organizations temporarily along with payday loans refers to a mandatory public regulation issued by a designated public health authority, in addition to the 65 percent subsidy. This follows the commitment in the Speech from the Throne to provide direct financial support to businesses temporarily closed as a result of a local public decision.
An extension of the Canada Emergency Payroll Subsidy until June 2021, keep employees on pay and encourage employers to re-hire their workers. The subsidy will remain at the current subsidy level of a maximum of 65 percent of the eligible wage until December 19, 2020. The measure is part of the government’s commitment to create more than 1 million jobs and restore employment to its previous level.
The Enhanced Canada Emergency Account (CEBA) will enable businesses and non-profit organizations eligible for CEBA loans. Access payday loans up to $ 20,000 in addition to the original CEBA loan of $ 40,000. Half of this additional funding will be forgiven if paid by December 31, 2022. In addition, the CEBA application deadline has been extended to December 31, 2020. Proof of the business impact of COVID-19 will be required to access additional funding.