Federal Stimulus Package


What is the federal stimulus bill and how could it impact me?

The $2 trillion relief bill will send money directly to Americans, greatly expand unemployment coverage and make a number of other changes including student debt relief and paid sick leave. After intense negotiations, the House and Senate passed and the President has signed the $2 trillion plus package to help American families and businesses make it through the coronavirus pandemic. The package is the biggest economic rescue package in modern American history. 

Individuals

Stimulus Checks

What it does
  • Provides funds for individuals
  • $1,200 per adult, $500 per child under 17

Who is eligible?

  • All residents with a work-eligible social security number and an adjusted gross income of $75,000 or less

More info: https://www.kiplinger.com/tool/taxes/T023-S001-stimulus-check-calculator-2020/index.php

Unemployment Insurance

What it does
  • Makes available an additional $600 per week for up to four months
  • Unemployment will be available up to 39 weeks

Who is eligible?

  • Unemployment is expanded to independent contactors and self-employed individuals
  • Those who are unable to work due to COVID-related issues or being furloughed, but have not been laid off are eligible

More info: https://www.dol.gov/general/topic/unemployment-insurance

Paid Family Leave

What it does
  • Provides paid family leave at 2/3s pay (max of $200) for up to 12 weeks

Who is eligible?

  • Employees of small to mid-sized businesses (fewer than 500 employees)
  • Someone taking care of a family member or child who is at home due to school closures

More info: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

Paid Sick Leave

What it does

  • Provides up to 80 hours of sick leave (regular compensation up to $511/day)

Who is eligible?

  • Employees of small to mid-sized businesses (fewer than 500 employees)
  • Individuals who are unable to work because they are on medical quarantine or have been told to self-isolate

More info: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

Mortgage and Renter Relief

What it does
  • Borrower may request forbearance on payments for up to six months
  • Interest will still accrue, but penalties, extra interest or additional fees cannot be added
  • No foreclosures or evictions from properties with federally0backed mortgages can occur during this time

Who is eligible?

  • Borrowers of federally-backed home loans (Fannie Mae and Freddie Mac)

More info: https://www.fhfa.gov/Homeownersbuyer/MortgageAssistance/Pages/Coronavirus-Assistance-Information.aspx

Student Loan Relief

What it does
  • Borrowers may request forbearance interest on federal student loans from April-September 2020
  • Borrowers may request forbearance on payments on federal student loans from April-September 2020
  • Garnishing of wages or tax refunds will stop during the same period.
  • Requires private collection agencies to stop pursuing defaulted borrowers during this period.

Who is eligible?

  • Borrowers of federally-backed student loans

More info: https://studentaid.gov/announcements-events/coronavirus

Retirement Plans Withdrawals

What it does
  • Qualified and related distributions up to $100,000 will be allowed without early withdrawal penalties

Who is eligible?

  • Retirement plan owners who have been impacted by COVID-19

 

Small Businesses

Emergency Grants

Who is eligible?
Business owners with fewer than 500 employees may use this to provide sick leave, keep up with payroll or pay other debts.

More info: https://www.sba.gov/funding-programs/disaster-assistance

Small Business Interruption Loans

What is it?
  • Funds may be used for payroll support, staff salaries, rent, utilities and other debt obligations

Who is eligible?

  • Businesses with fewer than 500 employees
  • Must have been affected by COVID-19 (supply, staffing issues, decrease in sales/customers)

More info: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

Small Business Administration Economic Injury Disaster Loan Program

Who is eligible?
Small businesses and non-profits affected by the coronavirus who are in the presidential- and SBA-declared disaster area. Loans are up to $2,000,000, with 2.75% interest rate for non-profits and 3.75% for small businesses.

More info: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources