The government has approved the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people in this critical time. Perhaps even you. This sweeping legislation is unprecedented in the history of our nation and provides significant economic assistance to address the impact of COVID-19. It's over 800 pages long, but here are some of the economic provisions most relevant for you.
What this means for you and your loved ones
You're likely eligible for a cash payment
One-time cash payments of up to $1,200 are based on a sliding scale dependent on income. Most individuals earning less than $75,000 can expect the full amount. A married couple would each receive a check and families receive $500 per child. That means a family of four earning less than $150,000 can expect $3,400.
If you or someone you know has lost a job States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
If you're a small business owner
The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.
There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.
If you're a freelancer or independent contractor Typically, self-employed people, freelancers and contractors can't apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program representing $600 per week through the end of the year helping people who lose work as a direct result of the public health emergency.
If you're a property/homeowner Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days.
Multi-family borrowers may request a similar forbearance for up to 30 days. In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period.
If you would like to learn more about all the contents in the CARES Act, check out this article.
Please don't hesitate to reach out if you have any questions, or if you would like to chat.
Stay safe and healthy my friends.
xo
Kate
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