from the Employment Law Practice Group

How Does the $2 Trillion Stimulus Package Help You and Your Business?

By
Ashley L. Toth

On Friday, March 27, 2020, President Trump signed into law the $2 trillion stimulus package known as Coronavirus Aid Relief and Economic Security Act (CARES), which is aimed to counter the economic and health impacts from COVID-19.  Here is how the Act impacts you:

Individuals:

Cash Payments, Which Are Estimated to Total $300 Billion

  • $1,200 checks (or direct deposit) to individuals earning less than $75,000.  The cash payments are based on either your 2018 or 2019 tax return. The checks start to phase down after that and disappear completely for individuals making more than $99,000 and couples making more than $198,000.
  • Married couples will each receive a check.
  • Families will receive a check for $500 per child.

Unemployment Compensation

  • The Act adds an additional 13 weeks of benefits to the total benefit period.
  • Eligible workers will receive an extra $600 per week for four months on top of the state unemployment compensation benefit.
  • The Act pushes states to waive the standard waiting period.  If the state waives the one-week waiting period, the federal government will cover the benefits for that week;
  • The Act creates the new temporary Pandemic Unemployment Assistance program, which provides benefits for workers, including the self-employed, independent contractors and partially-employed workers who cannot work due to the coronavirus. 

Tax Returns

  • Tax filing deadline has been extended to July 15.

Insurance Coverage

  • All private insurance plans must cover COVID-19 treatments and vaccine, and makes all coronavirus tests free.

Small Businesses (Fewer Than 500 Employees)

Payroll Grants/Forgivable Loans

  • $350 billion has been allocated for the Small Business Administration to provide forgivable loans of up to $10 million per business.  Any portion of the loan used for payroll (keeping employees on the books), rent, mortgage and existing debt will be forgiven.  Therefore, these forgivable loans are essentially grants for small businesses.

Emergency Operating Grants

  • $10 billion for grants up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs.

Relief for Existing Loans

  • $17 million to cover six months of payments for small businesses already using SBA loans.

 

 

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