Arkansas Secretary of Commerce Mike Preston says unemployment claims are backed up, but state officials are working to process those claims.
Preston added that the state government will be guaranteeing loans of up to $250,000 for Arkansan businesses, which he said are also being harshly affected by the outbreak of the novel coronavirus.
Preston said he does not expect employment numbers to get better soon.
Rob Robinson, chairman of the Arkansas Bankers Association, said the interiors of state banks are safe, as is the money inside them.
Interest rates for loans would be no more than 4%, are non-recourse and will not require a personal guarantee, according to Robinson.
Robinson said the banks will be able to use the tools in the recently signed $2.2 trillion stimulus “to help their customers right now.”
U.S. Rep. French Hill gave more details about the stimulus, called the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act.
For individuals who make less than $75,000 per year, the U.S. Treasury will be issuing $1,200 per adult and $500 per child for each family, according to Hill.
The Little Rock Republican said the bill will also allow people to use money from a 401(k) plan without paying a 10% penalty for doing so, and that it waives the required minimum distribution for retirement plan for seniors.
Payroll taxes are deferred for 2020, according to Hill.
He said small business with outstanding loans will be eligible to have the Small Business Administration pay the principal and interest payments for those loans.
“Your federal delegation is at your side to do two things: kill this virus and get this economy back to full capacity,” Hill said. “We’re your partner. Count on us, and we’re here to help you.”
Arkansas Gov. Asa Hutchinson asked Arkansans to not give up on work, encouraging them to look for jobs despite recent layoffs and current unemployment benefits.
Elsewhere, Department of Health Secretary Nate Smith has announced that Baxter County and Johnston County have both reported cases of covid-19. Of those infected, 61% are women, according to Smith.
There are 24 people in Arkansas who have recovered from the virus.
Smith urged people traveling from “hot spots” with high case amounts to self-quarantine for 14 days to prevent more.