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COVID-19 $2.2 Trillion Stimulus Bill: What It Means For you
The Senate and House have just passed a sweeping Bill to help Americans amid the Coronavirus (COVID-19) pandemic. The basic details of the Bill and how it can affect you and your family are as follows:
– Direct Payments to Americans- Dependent on income level.
Up to $1,200 for individuals
Up to $2,400 for couples
An additional $500 per child
– $500 Billion for corporations
– $350 Billion for small businesses
– $150 Billion for state & local stimulus funds
– $100 Billion for hospitals
– Expanded unemployment insurance for those that typically don’t qualify.
Things You Should Know
Under the plan, people making up to $75,000 a year are expected to receive checks for $1,200. Couples making up to $150,000 would receive $2,400, with an additional $500 per child. The new agreement removed the phased-in provision that would have excluded lower-income Americans from receiving the full benefit.
The payments would decrease for those making more than $75,000, with an income cap of $99,000 per individual or $198,000 for couples.
The bill is also expected to include roughly $100 billion in assistance for hospitals; $350 billion in assistance to small businesses; $500 billion in aid for corporations, including airline companies and cruise lines, that have been hurt by the outbreak; and about $150 billion for state and local stimulus funds.
Unemployment insurance
Unemployment insurance would also be significantly bolstered for four months by increasing payments and extending the benefit to those who typically do not qualify, such as gig economy workers, furloughed employees and freelancers. Specifically, the bill would increase the maximum unemployment benefit that a state gives to a person by $600 per week and according to Schumer, “ensures that laid-off workers, on average, will receive their full pay for four months.”
Unemployment Insurance Expanded Benefits
Provides for benefits of $600 per week through June 30, 2020, which is fully funded by the federal government.
Pandemic Unemployment Assistance Program
The Pandemic Unemployment Assistance Program provides up to 39 weeks of Unemployment Insurance benefits to people not otherwise eligible for regular unemployment compensation (including self-employed and those who have exhausted their regular benefits).
Small Business Assistance Program
Furthermore, the government is stepping in to help small businesses which are the lifeblood of the American economy, particularly responsible for the employment of many countless millions of Americans. The Federal Government through the Small Business Administration (SBA) will be providing the following:
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A $350 billion forgivable loan program designed to ensure that small businesses do not lay off employees
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A 50% refundable payroll tax credit on worker wages will further incentivize businesses, including ones with fewer than 500 employees, to retain workers
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Looser net operating loss-reduction rules that will allow businesses to offset more
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A delay in employer-side payroll taxes for Social Security until 2021 and 2022
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Sole proprietors and other self-employed workers could be eligible for the expanded unemployment-insurance benefits the bill provides
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A portion of the $425 billion in funds appropriated for the Federal Reserve’s credit facilities will target small businesses
The SBA, under the stimulus package, will also oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees. See below for details:
Under the CARES Act, qualifying businesses include:
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Businesses with up to 500 employees or which meet the applicable size standard for the industry as provided by SBA’s existing regulations
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Businesses in the accommodation and food services industries with more than one physical location but no more than 500 employees at each location
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Nonprofit organizations
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Eligible independent contractors and sole proprietors.
Businesses can receive loans up to $10 million, based on how much the company paid its employees between Jan. 1 and Feb. 29. The loans will carry an interest rate of up to 4%. The bill provides for an expedited origination process.
If the business uses the loan funds for the approved purposes and maintains the average size of its full-time workforce based on when it received the loan, the principal of the loan will be forgiven, meaning the company will only need to pay back the interest accrued.
As of Monday, March 30, 2020 the Federal Government with the assistance of the SBA has streamlined the process for applying for these loans. If you need assistance for your small business you should go to: https://www.chamberofcommerce.org/guide-to-ppp-loans or for a disaster loan go to: https://covid19relief.sba.gov/#/
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Companies may borrow up to 2.5 times their payroll, or up to $10 million.
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The government will pay off the loan balance so long as the companies either do not lay off workers or rehire ones they’ve already let go.
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8 weeks for payroll plus 25% for overhead
Federal Student Loans
The stimulus package enacted by Congress gives almost all federal student loan borrowers a six-month break from payments (only students holding private loans are not eligible, however, your loan provider may provide assistance, contact your bank). Student loans are an enormous source of stress for people of all income levels and this program helps to give the borrower peace of mind that a default on the student loan will not happen during these next six months. Additionally, if you still have income coming in and continue to make payments you will be able to pay down those loans faster as your interest rate is effectively 0% until September 30, 2020.
Details: You can stop making payments on most federal student loans (private loans excluded) for six months — from April through September — and no new interest will accrue. Essentially you will have the same balance on the loan in April as in September if you did not make any payments for those six months. Student loan debt hasn’t been eliminated, but the interest and penalties have ceased for the next six months.
The US Department of Education website requests that you contact your loan service provider for more details, additionally, most loan servicers have provided information regarding student loans on their websites. Below are the four largest and most used federal student loan servicers in the country:
www.nelnet.com
www.navient.com
https://myfedloan.org/
https://mygreatlakes.org/
New Jersey assistance to Homeowners and Renters
On Saturday, March 28, 2020, New Jersey Gov. Phil Murphy announced housing protections, including a 90-day grace period for mortgage payments and reasserted his March 19, 2020 Order for 60-day eviction and foreclosure moratorium for residents of the state (https://www.njleg.state.nj.us/2020/Bills/A4000/3859_I1.HTM), during his daily coronavirus press briefing.
Individuals or families with mortgages, who can show that they have been affected by Covid-19 through the loss of employment, can hold off on paying for 90 days without penalty, as was announced by the governor in order to aid all those effected by the COVID-19 outbreak. All homeowners or renters in New Jersey who have had financial hardship due to Covid-19 should contact their lender to inform them of an issue (documentation must be shown in order to qualify).
Credit Card and Car Payments
Every aspect of life has been upended and falling behind on car payments or your credit card can come with the incessant creditor calls demanding payment of money that right now should only be used to weather this current storm.
Thankfully, some banks and car companies are deferring payments for a period of time ensuring that their customers do not default on their loans. It is important that you reach out to your bank and your car loan servicer to discuss options if you are currently unable to make payments. Some options include delayed payments, payment assistance, or forbearance.
Additionally, the three major credit bureaus, Transunion, Experian, and Equifax have all taken steps to ensure that consumers’ credit is not drastically affected by this current financial crisis. Banks and lenders are to notify the credit bureaus if your account was placed in a special program for payment during this time, as this should not affect your credit score. You should periodically check your credit report to monitor any changes which can be done at www.AnnualCreditReport.com.
Many are nervous about their health and finances because of uncertainty and our natural desire to be in “control.” The Bianchi Law Group is providing essential data for those things that you can control and that can be of help to you and your families.
If we can be of assistance, please do not hesitate to contact us at 862-210-8570 or contact us.
Valuable Links During the Crisis
Below is a list of resources for anyone in need of assistance in New Jersey during this crisis:
The NJ Poison Control Center and 211 have partnered with the State to provide information to the public on COVID-19:
-Call: 2-1-1 for general questions regarding Covid-19
-Call (24/7): 1-800-962-1253 for medical question related to Covid-19
-Text: NJCOVID to 898-211
-Visit https://covid19.nj.gov/ or nj.gov/health for additional information
– New Jersey Foreclosure/Eviction: https://www.njhousing.gov/
– Mental Health resources; 1-866-202-HELP (4357) for free, confidential support from
NJ Mental Health Cares
– SBA loans; https://disasterloan.sba.gov/ela/
– NJ Department of Health – https://www.nj.gov/health/cd/topics/ncov.shtml
– Legal- www.bianchilawgroup.com; www.njcourts.gov
– Unemployment Resources NJ; https://myunemployment.nj.gov/
– Small Business – Google is offering $340 million in ad credits to small and mid-size businesses with active Google ad accounts as part of an $800 million coronavirus response package, the company announced. https://smallbusiness.withgoogle.com/news/resources-for-smbs-impacted-by-coronavirus/?utm_source=google&utm_medium=ep&utm_campaign=bar_coronavirus&subid=us-en-ha-awa-bk-c-200!o3~Cj0KCQjwyPbzBRDsARIsAFh15JbYpZAhSZQEky258L8H4sDgfxs8hFPVTRwAFnuwMoKwpWkImgIUYJ8aAqqJEALw_wcB~76351054006~kwd-94527731~6466339383~427684707068#!/
Note: This is information is not legal advice. It is as best as we can determine at this point. Things are changing rapidly, so please make sure to do you own due diligence for your particular situation.
We at the Bianchi Law Group are here to answer any questions you may have.
Be safe,
Bob Bianchi
Dave Bruno
No aspect of this attorney advertisement has been approved by the Supreme Court of New Jersey.
