President Trump has signed the $2.2 Trillion Coronavirus Stimulus Bill/CARES Act into law.
Here are some of the things that will do:
- Stimulus checks, up to $1,200 per adult and $500 per child as described in this post. Those will be sent out within the next 3 weeks.
- Unemployed benefits of $600 per week for up to 4 months, on top of state benefits. Also extends unemployment payments from 26 to 39 weeks. These will not only cover regular employees, but also gig economy and other self-employed workers who lose work due to coronavirus! This will run through 12/31/20.
- Many banks, credit cards, and companies are allowing payment deferrals without interest or penalties for consumers who ask for them. The new law won’t allow negative marks on your credit report due to taking advantage of these programs.
- Small businesses can apply for an emergency grant of up to $10,000.
- The SBA will distribute $350 billion in forgivable loans, up to $10MM per small business equal to 250% of an employer’s average monthly payroll, on favorable terms with no collateral needed. To qualify, a company must make a good faith certification that they need the loan based on current economic conditions. The entire principal of the loan can be forgiven based on keeping employees on payroll through the end of June and the forgiven amount will not be considered income. If you receive the $10,000 grant you would have that amount deducted from your loan forgiveness.
- Businesses with existing SBA loans can defer paying for up to 6 months without interest or penalties.
- Businesses with a 50% quarterly drop in gross receipts compared to past years can get a refundable tax credit for half the wages paid to employees, up to $10,000/employee as long as they keep paying wages and health benefits. Small businesses that take advantage of this will not be eligible for the SBA forgivable loans.
- Suspend federal student loan payments through September 30 without interest or penalties. Employers can also provide up to $5,250 in tax-free student loan repayment benefits.
- Employers and self-employed individuals can defer the 6.2% social security tax with half of the deferred amount owed by 12/31/21 and half by 12/31/22.
- Additional funding for food stamps, child nutrition, and food banks.
- $100 billion payments to hospitals for lost revenue and additional payments for treating patients with coronavirus.
- $16 billion for equipment like ventilators and masks.
- $500 billion of loans for businesses and state and local governments.
- Airlines will get bailed out in exchange for limits on stock buyback for the next year, executive compensation, and retaining employees and airports served.
- Money for the national guard, farmers, schools, distilleries making hand sanitizer, defense, post office, and research for developing coronavirus medicine and vaccines.
Which of these items will you benefit from?