What the CARES Act Means for You
If you hadn’t heard, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 27th. The $2.2 trillion relief package will provide much needed aid to families and businesses affected by COVID-19. So what does this mean for you exactly? Check out some of the highlights below. For a more in depth look at what’s in this relief law, check out this article from The Balance.
Stimulus Checks Depending on your income reported on your taxes, you may be eligible for up to $1,200 per adult, plus an additional $500 per child. This tax-free money will either be directed deposited (if you have previously provided direct-deposit info to the IRS) or sent in the mail as a check. You can check the IRS website for updates.
Small Business Owner Relief
The Paycheck Protection Program in the CARES Act offers loans to small businesses that can be forgiven when used to maintain payroll through June. For additional details from the U.S. Chamber of Commerce, click here.
Enhanced Unemployment Insurance
The CARES Act extends the unemployment insurance for eligible workers at the state level. An additional $600 a week will compliment existing state benefits. Check out this article from Fortune.com for additional unemployment information. The bill also creates a temporary Pandemic Unemployment Assistance program for freelancers and self-employed people who lose work due to the crisis.
If the impact of the coronavirus is affecting your ability to pay your mortgage, you may be able to get some relief. If you have a federally backed loan (guaranteed or insured by the Federal Housing Administration, Department of Veterans, Department of Agriculture or purchased or securitized by Fannie Mai or Freddie Mac), then you can request to delay your mortgage payments for a temporary period. During this time, according to the Federal Housing Finance Agency, “You won’t incur late fees. You won’t have delinquencies reported to the credit bureaus. Foreclosure and other legal proceedings will be suspended.”