Tag Archives: Pandemic

Small U.S. businesses were already struggling. Then coronavirus hit

By Jonnelle Marte

(Reuters) – Many small businesses were struggling with funding shortfalls and financial challenges even before the coronavirus pandemic hit, leaving them with little cash on hand to weather the slowdown caused by the virus, according to data released by the Federal Reserve on Tuesday.

Many small firms, particularly the smallest businesses and those owned by black and Hispanic entrepreneurs, also lack traditional banking relationships, which could make it more difficult for them to receive financial assistance during the crisis.

“Small businesses nationwide now face unprecedented challenges as the country grapples with the significant economic and social effects of the COVID-19 pandemic,” Claire Kramer Mills, assistant vice president at the New York Fed, said in a statement.

The majority of small employers reported growing revenue last year and more than a third even expanded their staffs, according to the 2019 survey report of more than 5,500 small firms issued by the 12 Federal Reserve Banks.

However, two-thirds of the businesses said they faced financial challenges last year, according to the report, which focused on businesses with fewer than 500 employees.

In a supplemental brief, researchers at the New York Federal Reserve assessed the ability for small businesses to cope with a substantial hit to revenue, categorizing firms according to their financial health – a metric based on their profitability, credit scores and earnings. Among the “healthy” firms, only about 20% had enough cash saved to continue operating as normal after losing two months’ worth of revenue.

Most small businesses surveyed by the Fed said they would have to shrink their staffs, delay payments or scale down operations after taking such a hit. Many firms would need to go into debt or turn to personal funds to close the gap.

That hypothetical scenario – two months without revenue – posed to businesses owners at the end of last year is now a reality for many firms, which closed down or substantially reduced their operations because of nationwide efforts to contain the spread of the coronavirus.

A new $349 billion small business bailout fund launched last week to shore up businesses with fewer than 500 employees got off to somewhat rocky roll out last week after some banks grappled with unclear rules and inconsistent government infrastructure. Some banks initially said they were prioritizing existing customers, putting some small business owners at a potential disadvantage for the first-come, first-served program.

Only 44% of small businesses had turned to a bank for a loan in the past five years and just 6% had turned to a credit union, according to the Fed survey. Businesses with more than $1 million in annual revenue and those with white owners were more likely to have used banks for funding, while smaller businesses and those with black or Hispanic owners were more likely to have used online lenders.

(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)

U.S. CDC reports 374,329 coronavirus cases, 12,064 deaths

(Reuters) – The U.S. Centers for Disease Control and Prevention (CDC) on Tuesday reported 374,329 cases of coronavirus, an increase of 43,438 cases from its previous count, and said that the number of deaths had risen by 3,154 to 12,064.

The CDC reported its tally of cases of the respiratory illness known as COVID-19, caused by a new coronavirus, as of 4 pm ET on April 6 compared to its count a day ago.

The CDC figures do not necessarily reflect cases reported by individual states.

(Reporting by Vishwadha Chander in Bengaluru; Editing by Aditya Soni)

CVS ramps up drive-through coronavirus testing sites with faster kits

CVS ramps up drive-through coronavirus testing sites with faster kits
By Michael Erman

(Reuters) – CVS Health Corp , called on by the Trump administration last month to help test Americans for infections from the new coronavirus, said it was launching two offsite testing locations with Abbott Laboratories’ faster diagnostic kit and would be able to handle 1,000 tests per day.

Testing for COVID-19, the serious respiratory illness cased by the new coronavirus, has been held back by a lack of test kits and other equipment. While more than 300,000 people in America have tested positive for the new coronavirus, officials believe a shortage of kits has undercounted cases.

Testing, including at drive-through sites like these, is also seen as a key component for U.S. workers and restarting the economy as most states have ordered many non-essential businesses to close.

Executives from Walmart In, Walgreens Boots Alliance Inc  and Target Corp also said in March as part of the government announcement that they would start this testing.

In recent weeks, CVS and Walgreens had said that they each had a pilot site running.

CVS’ two new drive-through COVID-19 testing sites in Georgia and Rhode Island will use the new Abbott tests, which can work in 15 minutes, and that up to four more locations to follow.

“We want to get some experience under our belt with these sites and understand exactly sort of what the volume looks like,” CVS Chief Medical Officer Troy Brennan said in an interview.

Brennan said the company expects to announce a third testing site in a different state on Tuesday and could launch up to three more sites afterward.

Brennan said it was changing the pilot model it had tested – a single-lane drive-through in the parking lot of one of its stores. The new testing sites will be located at Georgia Tech university and the other will be in the parking lot of a casino in Rhode Island.

CVS will supply personnel from its MinuteClinic unit to oversee the testing. The states will provide security and protective equipment.

The testing is currently available at no cost to patients and is being paid for by the federal government, CVS said.

Walgreens said last week on a conference call with analysts that it had a pilot running in Chicago that was doing about 150 tests a day under the direction of the government. Target said in March that because CVS handled the pharmacy operations in its stores, it would partner with them to bring any sites online.

(Reporting by Michael Erman and Caroline Humer; Editing by Nick Zieminski and Alistair Bell)

Florida, Nevada may be hit hardest by coronavirus economic shock: study

By Howard Schneider

WASHINGTON (Reuters) – Florida beaches remained packed with partying college students as the coronavirus crisis gathered force, and the Republican governor was slow to impose social distancing in a tourist-dependent economy.

That may come back to haunt the U.S. state – and not just in the form of a sky-rocketing case load. According to a newly released study by Oxford Economics, Florida is among the states most vulnerable to the economic shock being caused by the pandemic. (https://reut.rs/34cmzs3)

Oxford ranked the 50 U.S states and Washington D.C. using 10 measures its economists felt could make a local economy more vulnerable, including the share of the population over 65, dependence on retail sales, and the importance of the tourist industry.

Maine, with its proportionately older population and comparatively large number of people who are self-employed or work in small businesses, is considered the most vulnerable state economy, according to Oxford. Nevada, with its massive casino-based tourism industry, was second, while rural Vermont was third.

Florida is the only heavily populated state near the top of the list, with a comparatively large share of its 21 million residents over the age of 65, and an economy that is relatively dependent on retail sales and tourism.

The state’s COVID-19 case load topped 10,000 last week and it is adding a thousand cases a day. Governor Ron DeSantis imposed a statewide “stay at home” order that took effect Friday, weeks after some U.S. states.

“We see what’s going on in New York now, we see that people are dying,” Rick Scott, the Florida senator, told Fox News Channel on Saturday. “People are taking this very seriously now.”

States such as New York and California that have so far had the heaviest COVID-19 case loads may actually be among the more economically resilient, the Oxford team found.

“Lockdown and containment measures are the key determinants of first-round economic impacts of the coronavirus, but structural economic vulnerabilities determine the severity of second-round impacts,” Oxford lead economist Oren Klachkin wrote. Long-term results could depend on the strength of local government budgets and health systems.

Economists are struggling to get a grip on the potential aftermath of the crisis as it continues to deepen. Companies cut more than 700,000 jobs from their payrolls in March, a likely understated measure of rapidly rising unemployment: More than 6 million people filed for unemployment benefits in the week ended March 28 alone.

President Donald Trump initially downplayed the dangers of the virus and did not quickly recommend nationwide health orders. Local governments, which vary widely in their finances and ability to cope, had different initial responses to the threat, a fact that could shape the ultimate outcome of the crisis nationally.

The situation has produced a quick flowering of research on pandemic economics, with most studies finding that stricter health measures taken early on lead to deeper, but shorter, economic downturns and faster recoveries.

There are political as well as economic implications.

Florida, for example, is an important battleground state in the U.S. electoral system, and the perceived success or failure of efforts to control the virus and support local businesses and households could influence Trump’s reelection chances.

IHS Markit U.S. regional economist Karl Kuykendall also ranked Florida among the more vulnerable states, using a different methodology focused on estimated declines in employment and economic output. The state may lose about 8% of its jobs by the end of the year, he calculated.

The manufacturing heavy “rust belt” states from Pennsylvania to Michigan, also politically important constituencies that swung the 2016 race for Trump, are in line to take similarly heavy hits to employment, Kuykendall estimated.

Personal finance site WalletHub.com used a broader set of metrics, including work from home capacity and local financial strength, for another ranking.

Florida is in the middle of that pack because of its comparatively few small businesses and stronger state finances, WalletHub found. It said Louisiana was most “exposed,” with Maine and Nevada also high on the list. Among the more populous states, Pennsylvania and Illinois were in WalletHub’s top 10.

None of the studies accounted for the help coming to households, businesses and local governments from the $2.3 trillion emergency rescue package approved by Congress in late March, or the wide set of programs established by the Federal Reserve.

The combined aim of those efforts is to offset the economic impact of the virus. Officials are focused now on whether the aid can reach where it is needed fast enough to matter.

(Reporting by Howard Schneider: Editing by Heather Timmons and Daniel Wallis)

Allstate to return $600 million in auto premiums to customers as pandemic cuts driving

By Suzanne Barlyn

(Reuters) – U.S. insurer Allstate Corp  said on Monday that it would return more than $600 million in auto insurance premiums to customers as many Americans stay home and drive less due to “shelter-in-place” orders to curb the coronavirus outbreak.

Most customers will receive a “payback” of 15% of their monthly premium in April and May, the company said.

A smaller U.S. auto insurer, American Family Insurance in Madison, Wisconsin, also said on Monday that it would return a total of $200 million to auto insurance customers beginning in mid-April. Customers will receive $50 per vehicle covered by their policies, the company said.

“There are very few silver linings out there, but auto insurance companies are definitely one of them,” said Piper Sandler analyst Paul Newsome about coronavirus.

Fewer accidents generally lead to a lower claim frequency and Newsome expects insurance companies with large auto portfolios, such as Progressive Corp <PGR.N>, Travelers Companies Inc <TRV.N> and Allstate, to post good first quarter results.

The payments show how coronavirus could provide a silver lining for at least one industry – auto insurance companies – as more drivers stay off the roads.

Allstate’s payback, which will apply to 18 million policies issued by Allstate and its Esurance and Encompass units, follows a data analysis by the insurer of 23 million cars that showed driving mileage being down between 35% and 50% in most states, Allstate Chief Executive Officer Tom Wilson said during a call with reporters on Monday.

The analysis, based partly on data that Allstate collects from tracking products that some customers agree to use in exchange for discounts, and other sources,

Allstate’s data showed no difference between states that had “shelter in place” orders in effect and those that did not, Wilson said.

Still, some people who are still on the roads are driving faster on what are now less densely traveled roads, which could lead to more serious accidents, Wilson said.

Next Insurance, a commercial insurer in Palo Alto, California that covers small businesses also on Monday said that it would discount April commercial auto premiums by 25% because “stay at home” orders have reduced the insurers’ risks.

(Reporting by Suzanne Barlyn; Additional reporting by Tina Bellon; Editing by Steve Orlofsky and Marguerita Choy)

Your COVID-19 questions, answered

There is a lot of misinformation circulating about the coronavirus, so we took to Instagram, Twitter and Reddit to see what questions have been bugging you, our readers.Below are answers from several healthcare experts who have been following the outbreak. Please note that there is much we still don’t know about the new virus, and you should reach out to your own healthcare provider with any personal health concerns.

LIVING UNDER LOCKDOWN

What are good ways to maintain your mental health?

I would recommend the following:

1. Maintain a normal schedule if possible

2. Exercise (go for walk or run, do an online video)

3. Maintain social connections via FaceTime, Skype or phone calls

4. Limit time spent on the Internet and connected to the news

5. Have “virtual” dates with family and friends.

— Dr. Krutika Kuppalli, infectious disease researcher

Here’s how it’s affecting young minds  and how millennials are adjusting to isolation.

How long will the U.S. really have to be on lockdown to successfully flatten the curve?

We’re still learning on a daily basis what the case count looks like in the U.S. We also need to consider that there could be a resurgence of cases once public health measures are loosened up.

— Dr. Krutika Kuppalli, infectious disease researcher

I defer to the epidemiologists here, but National Institute of Allergy and Infectious Diseases Director Anthony Fauci recently said that he’s confident in a range of four to six weeks to 3 months.

— Dr. Angela Rasmussen, virologist at Columbia University

Do I actually need to wear a mask?

The WHO advises that if you’re healthy, you need to wear a mask only when caring for an infected person or if you’re coughing, sneezing or showing symptoms. More here

TRANSMISSION

Is it fair to assume every American will be exposed to the coronavirus this year?

No, which is one of the reasons we have these current public health measures in place. We are trying to prevent further onward transmission of the disease.

— Dr. Krutika Kuppalli, infectious disease researcher

Almost 100,000 cases have been reported in the U.S. and its territories, according to a Reuters tally of state and local government sources, mapped .

Is the coronavirus airborne in normal settings and if so, for how long?

According to our knowledge, it does not stay in the air in normal settings. Most evidence directs us to droplet transmission. Airborne precautions are required only for healthcare workers when undertaking aerosol producing procedures such as bronchoscopy/intubation.

— Dr. Muge Cevik, infectious diseases researcher at the University of St. Andrews

Is there potential exposure in elevators?

Coronavirus guidelines by the CDC are based on the fact that the virus is transmitted primarily via respiratory droplets, like a cough or sneeze. In droplet form, it’s airborne for a few seconds, but is only able to travel a short distance. In elevators, social distancing measures should be implemented with a max number of people inside at a time.

— Infectious Diseases Society of America

How worried should we be about fomite transmission?

We are still learning about fomite transmission. We know from an article in the New England Journal of Medicine that the virus is viable up to four hours on copper, 24 hours on cardboard, and two to three days on plastic and stainless steel.

— Dr. Krutika Kuppalli, infectious disease researcher

Can you spread the virus if you’re asymptomatic?

Yes, but it isn’t the main driver of transmission. This is also why it is extremely important to ensure you have washed hands before touching your face.

— Dr. Krutika Kuppalli, infectious disease researcher

What’s the typical timeline of symptoms?

From the time of exposure to symptoms it may take on average three to six days, which may be longer/shorter in some patients. Typically it starts with fever, dry cough, myalgia and flu-like illness, then progresses to shortness of breath and pneumonia in some patients.

— Dr. Muge Cevik, infectious diseases researcher at the University of St. Andrews

Is it possible that an infected person only has a mild cold before recovering?

Yes. The most common symptoms a person will have are fever, dry cough and muscle aches/fatigue.

— Dr. Krutika Kuppalli, infectious disease researcher

Should people be more concerned about eye protection?

We certainly use face shields to protect our eyes when in contact with patients.

— Dr. Isaac Bogoch, infectious disease researcher and scientist

Does getting vaccines increase your risk?

Getting any vaccines would not increase your risk for COVID-19. We’re recommending getting needed vaccines. We want people to get their influenza vaccines so they don’t end up with the flu and in the hospital.

— Dr. Krutika Kuppalli, infectious disease researcher

Do people have a natural immunity to this virus?

I am not aware of “natural immunity” since it is a new virus. We might find as serology testing is rolled out that people have been exposed and developed antibodies without having symptoms.

— Dr. Krutika Kuppalli, infectious disease researcher

Is it possible to get reinfected?

We’re not sure how immunity works or how long it lasts. The best guess is that people who are infected are likely to be protected over the short-to-medium term. We don’t know about longer yet.

— Dr. Eric Rubin, editor-in-chief, New England Journal of Medicine

There are a handful of cases of possible “reinfection” in recovered patients. But most scientists believe those are more likely to have been relapses.

TREATMENT

Is there a team working on an antibody test for the virus? If so, when might it be ready?

There are teams working on serological tests. Rolling out on a population scale will be an essential part of the long-term answer, but we need to get through the next month.

— Bill Hanage, associate professor at the Harvard T. H. Chan School of Public Health

When will a vaccine be ready?

Vaccine trials may take as long as 12 months. There are multiple clinical trials looking at different treatment options, but we currently don’t know whether this combination is effective and safe for patients.

— Dr. Muge Cevik, infectious diseases researcher at the University of St. Andrews

Scientists in Singapore are trying to fast-track the process.

What impact will warmer weather have on the spread?

I have yet to see convincing evidence on this, one way or the other. We are all hoping transmission will slow down with warmer weather in the northern hemisphere, and that warmer countries will be spared the worst. Not enough data yet to conclude.

— Dr. Suerie Moon, director of research at the Global Health Centre

Here’s what we know about seasonal features of disease outbreaks.

I’ve seen several news sources report that experts from Johns Hopkins and other medical colleges are saying the virus can become less deadly as it spreads. Can you explain this phenomenon?

Yes, one theory for why many viruses become weaker over time is that viruses that kill their host don’t get very far. This pattern of weakening is seen with flu viruses, and many others, but not all. We’re not there yet with the current outbreak. Whether it’s weaker three or 10 years from now doesn’t change anything about today’s situation.

— Christine Soares, medical editor at Reuters

(Reporting by Lauren Young, Jenna Zucker, Beatrix Lockwood, Nancy Lapid, Christine Soares)

Factbox: Latest on the spread of the coronavirus around the world

(Reuters) – Global cases of the new coronavirus have passed 1 million and more than 64,000 people have died, a Reuters tally showed on Sunday, in a pandemic that has hammered the world economy.

DEATHS AND INFECTIONS

* Reuters tally of reported cases and deaths.

* For an interactive graphic tracking the global spread, open here.

* U.S.-focused tracker with state-by-state and county map, open here.

EUROPE

* Parisians have been warned not to succumb to the tempting sunny spring weather and to remain indoors to help fight the spread of the coronavirus that has killed 7,560 in France.

* Italy’s health minister outlined plans on Sunday for broader testing and beefed-up health services as part of a package of measures that would follow a future easing of the country’s lockdown.

* Britain will have to impose further restrictions on outdoor exercise if people flout lockdown rules, Health Secretary Matt Hancock said.

* Queen Elizabeth will call on Britons to take on the challenge and disruption caused by the outbreak with good-humored resolve when she makes an extremely rare address to rally the nation on Sunday.

* The rate of new infections and deaths in Spain slowed again on Sunday as the country, suffering from one of the world’s worst outbreaks of the pandemic, began its fourth week under a near-total lockdown.

* Pope Francis marked a surreal Palm Sunday in an empty St. Peter’s Basilica, urging people living through the pandemic not to be so concerned with what they lack but how they can ease the suffering of others.

AMERICAS

* President Donald Trump told Americans to brace for a big spike in coronavirus fatalities in the coming days, as the country faces what he called the toughest two weeks of the pandemic.

* More than 306,000 people have tested positive in the United States and over 8,300 have died, according to a Reuters tally.

* The number of crew on the USS Theodore Roosevelt aircraft carrier who have tested positive for the coronavirus has risen 13% in the past 24 hours to 155, the Navy said on Saturday, in the wake of the firing of the carrier’s captain.

* Brazil’s lower house of Congress approved a constitutional amendment for a “war budget” to separate coronavirus-related spending from the government’s main budget and shield the economy as the country surpassed 10,000 confirmed cases.

ASIA

* Mainland China reported 30 new coronavirus cases on Saturday, up from 19 a day earlier as the number of cases involving travelers from abroad as well as local transmissions increased, highlighting the difficulty in stamping out the outbreak.

* India is restricting the export of most diagnostic testing kits, as coronavirus cases topped 3,350 on Sunday. The country has imposed a three-week nationwide lockdown to slow the spread of the disease.

* Australian health officials said they were cautiously optimistic about the slowing spread of the coronavirus but warned social distancing restrictions are to stay in place for months.

MIDDLE EAST AND AFRICA

* Dubai imposed a two-week lockdown and Saudi Arabia sealed off parts of the Red Sea city of Jeddah as Gulf states tightened measures in big cities to contain the spread of the coronavirus.

* Egyptian President Abdel Fattah al-Sisi postponed the launch of mega-projects including the Grand Egyptian Museum and moving civil servants to a planned new capital city to 2021 from 2020 due to the coronavirus outbreak, the presidency said.

ECONOMIC FALLOUT

* The job losses suffered in March as the U.S. economy shut down were widespread but still were disproportionately felt in a handful of employment sectors and by women, the young and the less educated.

* The pandemic has brought the global economy to a standstill and plunged the world into a recession that will be “way worse” than the global financial crisis a decade ago, the head of the International Monetary Fund said on Friday.

* Global stock markets sank on Friday following more signs that the pandemic would take a massive toll on economic growth. [MKTS/GLOB]

(Compiled by Frances Kerry)

Why is New Orleans’ coronavirus death rate nearly three times New York’s? Obesity is a factor

By Brad Brooks

(Reuters) – The coronavirus has been a far deadlier threat in New Orleans than the rest of the United States, with a per-capita death rate almost three times that of New York City. Doctors, public health officials and available data say the Big Easy’s high levels of obesity and related ailments may be part of the problem.

“We’re just sicker,” said Rebekah Gee, who until January was the health secretary for Louisiana and now heads Louisiana State University’s healthcare services division. “We already had tremendous healthcare disparities before this pandemic – one can only imagine they are being amplified now.”

Along with New York and Seattle, New Orleans has emerged as one of the early U.S. hot spots for the coronavirus, making it a national test case for how to control and treat the disease it causes. Chief among the concerns raised by doctors working in the Louisiana city is the death rate, which is close to three times that of New York and over four times that of Seattle, based on publicly reported data.

New Orleans residents suffer from obesity, diabetes and hypertension at rates higher than the national average, conditions that doctors and public health officials say can make patients more vulnerable to COVID-19, the highly contagious respiratory disease caused by the coronavirus.

Some 97% of those killed by COVID-19 in Louisiana had a pre-existing condition, according to the state health department. Diabetes was seen in 40% of the deaths, obesity in 25%, chronic kidney disease in 23% and cardiac problems in 21%.

Orleans Parish, which encompasses the city, reported 115 deaths as of Wednesday, giving it 29.5 coronavirus deaths per 100,000 people. That rate for New York City was at 10.8 on Wednesday.

New Orleans could be a harbinger for the potential toll the pandemic could take in other parts of the South and Midwest that also have high rates of obesity, diabetes, and hypertension.

A host of other factors could contribute to New Orleans’ high death rate from COVID-19, ranging from access to healthcare and hospital quality, to the prevalence of other conditions, including lung disease, health officials say.

But they also note that it is clear that obesity-related conditions are playing a role in the deaths. That could be a warning sign for the United States at large, where chronic obesity is more common than in other developed countries, they said.

Hospitals are reporting cases across the generations -mothers and daughters, fathers and sons – being intubated and cared for in the same intensive care units, said Tracey Moffatt, the chief nursing officer at Ochsner Health, the largest healthcare provider in Louisiana. The prevalence of obesity, diabetes, hypertension and heart disease in New Orleans and Louisiana plays into that, she said.

Those family members often suffered from the same medical conditions before becoming sick, leaving them similarly vulnerable to the coronavirus despite their age gaps.

“We had a case where a mom was already in the ICU and the daughter, who was obese, came in,” she said. “The daughter asked staff to wheel her by her mom’s room so she could say goodbye before she herself was intubated. We knew the mother was going to pass away.”

Both patients suffered from obesity.

‘MORE VULNERABLE’

The Centers for Disease Control and Prevention this week released for the first time a report showing that 78% of COVID-19 patients in ICUs in the United States had an underlying health condition, including diabetes, cardiovascular disease and chronic lung disease.

The CDC report was based on a sample of under 6% of reported coronavirus infections, but doctors in Louisiana said it was consistent with what they are seeing, and it is in line with what other countries like Italy and China have faced.

Those percentages, said Dr. Joseph Kanter, an emergency department doctor and the top public health official in New Orleans, are likely similar in cities across the United States.

“What we worry about here is that we have more people in our communities with those conditions,” he said. “We’re more vulnerable than other communities, and the number of deaths we’ve seen illustrates that.”

The New Orleans metropolitan statistical area ranks among the worst in the United States for the percentage of residents with diabetes, high blood pressure and obesity, a Reuters analysis of CDC data shows. An estimated 39% have high blood pressure, 36% are obese and about 15% have diabetes.

Nationally, the median is 32% with high blood pressure, 31% obese and 11% with diabetes.

“The burden of disease in Louisiana and the Deep South is higher than in the rest of the country,” said Gee. “Invariably that means that the South is going to be hard hit by this.”

(This story corrects headline, paragraphs 1 and 3 to reflect actual death toll of Orleans Parish of 115 deaths; Inserts new paragraph 6 with breakdown of figures.)

(Reporting by Brad Brooks in Austin, Texas, additional reporting by Ryan McNeill in London; Editing by Scott Malone, Rosalba O’Brien and Dan Grebler)

What’s in the $2.3 trillion U.S. coronavirus rescue package

(Reuters) – U.S. President Donald Trump signed the largest federal stimulus package in history into law on March 27 to help cope with the economic downturn inflicted by the coronavirus pandemic and shore up medical providers on the front lines of the outbreak.

Here are major elements of the plan, which is estimated to cost roughly $2.3 trillion. Cost estimates are provided by congressional committees and the Committee for a Responsible Federal Budget, a nonpartisan policy group.

DIRECT PAYMENTS TO AMERICANS

Direct payments of up to $1,200 each to millions of Americans, with additional payments of $500 per child. Payments would be phased out for those earning more than $75,000 a year. Those earning more than $99,000 would not be eligible.

Estimated cost: $292 billion

ENHANCED UNEMPLOYMENT AID

Payments for jobless workers would increase by $600 per week. Laid-off workers would get those payments for up to four months. Regular benefits, which typically run out after six months in most states, would be extended for an additional 13 weeks.

Self-employed workers, independent contractors and those who typically don’t qualify for unemployment benefits would be eligible. The government would also partially make up wages for workers whose hours are scaled back, in an effort to encourage employers to avoid layoffs.

Estimated cost: $260 billion

SMALL BUSINESS LOANS AND GRANTS

Loans for businesses that have fewer than 500 employees could be partially forgiven if they are used for employee salaries, rent, mortgage interest and utility costs. The bill also includes emergency grants for small business.

Estimated cost: $377 billion.

AID TO AIRLINES, LARGE BUSINESSES

The bill sets up a fund to support a new Federal Reserve program that offers up to $4.5 trillion in loans to businesses, states and cities that can’t get financing through other means.

Companies tapping the fund would not be able to engage in stock buybacks and would have to retain at least 90% of their employees through the end of September. They would not be able to boost executive pay by more than $425,000 annually, and those earning more than $3 million a year would see their salaries reduced.

The fund would be overseen by an inspector general and a congressional oversight board. The Treasury secretary would have to disclose transactions.

Businesses owned by President Donald Trump, other administration officials or Congress members, or their family members, would not be eligible for assistance.

Loans are set aside for airlines, air cargo carriers, airline contractors and “businesses important to maintaining national security,” widely understood to be Boeing Co.

Total cost: $500 billion

GRANTS FOR AIRLINES

Airlines, air cargo carries and airline contractors also could get grants to cover payroll costs. They would have to maintain service and staffing levels, and would not be able to buy back stock or pay dividends. The U.S. government could get stock or other equity in return. Executive pay above $425,000 a year would be frozen for two years, and those who earn more than $3 million annually would see their salaries reduced.

Total cost: $32 billion

HOSPITALS AND PUBLIC HEALTH

– $100 billion for hospitals and other elements of the healthcare system

– $16 billion for ventilators, masks and other medical supplies

– $11 billion for vaccines and other medical preparedness

– $10 billion for the U.S. Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA) and other health agencies

– $20 billion for veterans and military health systems

– $20 billion for the Medicare health program for seniors

STATES, EDUCATION, TRANSPORTATION

– $150 billion for state, local and Native American tribal governments

– $45 billion in disaster relief

– $32 billion for education

– $25 billion for mass-transit systems

– $10 billion in borrowing authority for the U.S. Postal Service

– $1 billion for the Amtrak passenger rail service

– $10 billion for airports

– $4 billion to suspend airline ticket, cargo and fuel taxes

TAX CUTS

– A refundable 50 percent payroll tax credit for businesses affected by the coronavirus, to encourage employee retention. Employers would also be able to defer payment of those taxes if necessary. Cost: $67 billion

– Loosened tax deductions for interest and operating losses. Cost: $210 billion

– Loosened rules for retirement funds, allowing people to withdraw money early or postpone withdrawals from accounts such as Individual Retirement Accounts (IRAs) that have been hurt by turbulence in financial markets. Cost: $8 billion

– Allows people to use tax-advantaged savings accounts to buy menstrual medical products. Cost: $9 billion

– Tax write-offs to encourage charitable deductions and encourage employers to help pay off student loans. Cost: $3 billion

– Waive tax on distilled spirits used to make hand sanitizer

INCREASED SAFETY NET SPENDING

– $25 billion more for food stamps and child nutrition

– $12 billion more for housing programs

– $5 billion more for child and family services

OTHER ELEMENTS

– Temporary ban on foreclosures and evictions for people who rely on federal housing and mortgage programs

– Defer payments and interest on federal student loans

(Reporting by Andy Sullivan; Editing by Scott Malone, Peter Cooney, Steve Orlofsky, Jonathan Oatis and Sonya Hepinstall)

Chinese scientists seeking potential COVID-19 treatment find ‘effective’ antibodies

By Martin Quin Pollard

BEIJING (Reuters) – A team of Chinese scientists has isolated several antibodies that it says are “extremely effective” at blocking the ability of the new coronavirus to enter cells, which eventually could be helpful in treating or preventing COVID-19.

There is currently no proven effective treatment for the disease, which originated in China and is spreading across the world in a pandemic that has infected more than 850,000 and killed 42,000.

Zhang Linqi at Tsinghua University in Beijing said a drug made with antibodies like the ones his team have found could be used more effectively than the current approaches, including what he called “borderline” treatment such as plasma.

Plasma contains antibodies but is restricted by blood type.

In early January, Zhang’s team and a group at the 3rd People’s Hospital in Shenzhen began analysing antibodies from blood taken from recovered COVID-19 patients, isolating 206 monoclonal antibodies which showed what he described as a “strong” ability to bind with the virus’ proteins.

They then conducted another test to see if they could actually prevent the virus from entering cells, he told Reuters in an interview.

Among the first 20 or so antibodies tested, four were able to block viral entry and of those, two were “exceedingly good” at doing so, Zhang said.

The team is now focused on identifying the most powerful antibodies and possibly combining them to mitigate the risk of the new coronavirus mutating.

If all goes well, interested developers could mass produce them for testing, first on animals and eventually on humans.

The group has partnered with a Sino-U.S. biotech firm, Brii Biosciences, in an effort “to advance multiple candidates for prophylactic and therapeutic intervention”, according to a statement by Brii.

“The importance of antibodies has been proven in the world of medicine for decades now,” Zhang said. “They can be used to treat cancer, autoimmune diseases and infectious diseases.”

The antibodies are not a vaccine but could potentially be given to at-risk people with the aim of preventing them from contracting COVID-19.

Normally it takes around two years for a drug even to get close to approval for use on patients, but the COVID-19 pandemic means things are moving faster, he said, with steps that would previously be taken sequentially now being done in parallel.

Zhang, who posted the findings online, hopes the antibodies can be tested on humans in six months. If they are found to be effective in trials, actual use for treatment would take longer.

Other experts urge caution.

“There’s a number of steps which will now need to be followed before it could be used as a treatment for coronavirus patients,” Hong Kong University infectious disease specialist Ben Cowling said when the finding was described to him by Reuters.

“But it’s really exciting to find these potential treatments, and then have a chance to test them out. Because if we can find more candidates, then eventually we’ll have better treatment,” Cowling said.

(Additional reporting by Roxanne Liu; Editing by Kim Coghill; Editing by Tony Munroe, Kate Kelland and Kim Coghill)