What the CARES ACT Means for You

March 27, 2020 — Source: Compass

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As we're all dealing with the effects of COVID-19 on our lives, I want to share encouraging news: 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. 

The CARES Act is 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

 

If you're eligible for a cash payment 

Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $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, 

please see this article.

 

Please do not hesitate to reach out should you have any questions, or if you would like to chat.

 

Stay safe and healthy.

All the best,

Rebeca Hoffman