Economic Impact Payments: The economic impact payments will start in the month of April 2020 and will be distributed automatically, with no action required for most people. Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
COVID-19 Tax Relief: The IRS extended the payment deadline for taxes to July 15, 2020. The deadline to file your taxes is still April 15, 2020. If you can’t file by April 15, 2020, you can request a six-month extension.
Paycheck Protection Program: The $2 trillion stimulus package includes $350 billion in small business loans and $500 billion in loans for distressed companies. These small business loans — known as the Paycheck Protection Program — is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.
Small Business Loan through US Small Business Administration: These loans are administered by the small business administration and are available for up to $2 million in states where an economic disaster has been declared. The interest rate is 3.75% for businesses and 2.75% for nonprofits. The term of the loan varies by applicant but could be up to 30 years.
Unemployment Benefits: The federal government is allowing new options for states to amend their laws to provide unemployment insurance benefits related to COVID-19. New federal law allows states to extend benefits to self-employed and gig workers, and to provide an extra $600 per week as well as an additional 13 weeks of benefits. Check your state and eligibility at this site.
Workshare Program: Workshare programs let businesses temporarily reduce the hours of their employees, instead of laying them off during economic downturns. Check your state’s website to find what options are available to you.