SPRINGFIELD, MA (WGGB/WSHM) -- The House passed the coronavirus stimulus bill today, so direct payments to Americans could begin processing as soon as April.
The goal of this bill is to breathe life back into the economy and into the bank accounts of workers.
We spoke with a local bank about how they are expected to play a role in carrying out the stimulus bill and an economist is also weighing in on how this could affect the economy.
“Things have just shut down, people are out of work, businesses are closed. It’s going to be deep, much deeper than it was in 2008,” said AIC economics professor John Rogers
Two-trillion dollars being poured into the U.S. economy isn't just a drop in the bucket, but these aren't just ordinary times.
Rogers said the economic outlook is ‘V-shaped’ in the wake of COVID-19. He said the stimulus bill could help boost the economy into an upswing if the curve of the coronavirus is flattened sufficiently.
"You go down fast, but then once this crisis starts to abate, the curve flattens, as they say, people get back to work. You could have some pretty positive things going on, which are low interest rates, low energy prices,” Rogers explained.
Western Mass News also spoke with Steve Lowell, the president of Monson Savings Bank.
Because the coronavirus stimulus bill contains $300 billion for small businesses, Lowell expects his bank will have to help some of that money get into the right hands.
“The SBA is going to be funneling a lot of money through us and those technicalities are still not published yet,” Lowell said.
Lowell said the bank has deposit insurance, meaning people's money will be secure once the one-time stimulus payments hit direct deposit.
“The thing, I think, that we want to avoid is people trying to hoard cash. It sets them up as potential victims of crime,” Lowell said.
To send the stimulus payments to the right place, the government will use the direct deposit information listed on your 2019 returns or your 2018 returns if you haven't filed yet this year.
However, for those who have moved away or changed banks, Lowell said they are prepared if a payment if it goes to a closed account
“If it came into an account that was closed, we would return it to the IRS and they would have to hunt down the person,” Lowell said.
The government will also mail checks if they don't have direct deposit information for you. You can fill out a change of address form on the IRS’s website.