The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a $2 trillion stimulus relief package that was signed into law by President Trump on March 26, 2020. The bill provides financial relief for individuals across the United States who are facing economic hardship due to the coronavirus pandemic. These are the details of the stimulus relief bill and what you can expect from it.
Who Will Get Direct Payments?
The most publicized detail of the stimulus relief package is direct payments to taxpayers. According to the details of the bill, this is what you can expect in terms of financial assistance in the form of cash payments:
- Single individuals who make $75,000 or less will receive a $1,200 payment
- Married couples who make $150,000 or less will receive a $2,400 payment
- Payments of an additional $500 will be made for every child or legal dependent
- Individuals and married couples who make above the threshold will also receive payments of reduced amounts
All direct payments will be made to taxpayers via the banking information on record with the IRS. So, if you receive your tax refund as a direct deposit, your relief payment will also be paid via direct deposit. Payments are expected to begin Friday, April 17.
Who Gets Extended Unemployment Insurance?
In addition to payments, the government has also enhanced unemployment benefits in light of the pandemic. Under the stimulus package, any person on unemployment will receive an additional $600 per week for four months. In addition, this will also help individuals who are not usually eligible for unemployment, such as independent contractors and the self-employed.
Who is Eligible for Small Business Loans?
Small business owners and those who are employed by small businesses are among the most heavily impacted by COVID-19. To assist small businesses and stimulate the economy, the government is offering loans of up to $10 million. Any business with fewer than 500 employees is eligible to apply. Loans provide assistance for payroll costs for employees making up to $100,000 per year. This portion of the stimulus package was designed to encourage small businesses to maintain their employees during this time.
In addition to small business assistance, the stimulus bill also provides relief to mid-sized and large businesses. Businesses that might benefit from this assistance include airlines and major corporations.
Who Qualifies for Mortgage Forbearance?
Any person who loses their job typically worries first about their mortgage payment and their home. A major component of the stimulus relief bill is mortgage forbearance. To qualify, you must apply with your lender. Once granted, you will not have to make payments for 180 days. If you’re still facing financial difficulty at the end of the 180-day term, you can apply for an additional 180 days of forbearance.
Does the Bill Offer Student Debt Relief?
Student loan debt is an issue for more than 40 million adults in the United States. The average student loan borrower has approximately $30k in debt. The CARES Act automatically places all federal student loans in forbearance from March-September 2020. During this time, no interest will accrue. Borrowers should check with their lenders to ensure their student loans meet the requirements for forbearance. If you have a student loan that is not eligible for forbearance, such as a private student loan, it’s in your best interest to check with your lender about alternative repayment plans.
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