The Federal Stimulus Bill Key Benefits

03/27/2020

This is the largest economic relief bill in the history of the United States and is being implemented in response to the covid-19 pandemic. It is designed to provide relief for individuals, workers, businesses and the health care system. One of its key provisions is one time direct payments to individuals.

Direct Payments & Eligibility

The amount of the payment is up to $1200 for individual adults, $2400 per couple and an additional $500 per qualifying child. A qualifying child is generally any dependent of a taxpayer who is under the age of 17. The payment will not be taxed as income. Initial reporting holds that checks begin sending in 3 weeks. There is nothing that you need to do to receive the payment..

Eligibility is based on income and full the payment will be made for those with and adjusted gross income under $75,000. Individuals are ineligible if their adjusted gross income is above $99,000. For those whose income falls between those two values, the amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold. Income will generally be determined using 2018 or 2019 tax filings.

Small Businesses

Payroll Protection Program

Under the bill, the Small Business Administration will oversee the Paycheck Protection Program which distributes 350 billion to businesses with fewer than 500 employees. These loans are intended to help maintain the workforce. A business can receive up to 10 million and with interest up to 4%. If a business receiving a loan maintains the average size of its workforce, it will only need to pay back the accrued interest and the principal effectively becomes a grant.

The US Chamber of Commerce has assembled a guide for applying under the Payroll Protection Program.

Economic Injury Disaster Loans

These loans are available to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19). An EIDL provides up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The funds can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%

Applications can be made online at disasterloan.sba.gov/ela . Assistance can also be obtained by calling 1‐800‐659‐2955.

Unemployed Workers

The bill provides for an extra $600 a week on top of their state benefits for up to four months for those who receive unemployment. A new pandemic unemployment assistance program would expand eligibility to those who are unemployed, partially unemployed or unable to work because of the virus and don't qualify for traditional benefits. This would include independent contractors, the self-employed and gig economy workers. To apply for unemployment benefits in Illinois and obtain further information visit: www2.illinois.gov/ides

Students

Students, who have federally held student loans, will have their payments suspended until September 30th, 2020. No interest will accrue during this period.


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