With all the loans, checks and constantly changing plans happening around all of us right now, we are going to put it all in one place. This blog post has updates on stimulus checks, unemployment, the Paycheck Protection Program, and Economic Injury Disaster Loan.
Let’s start with the Paycheck Protection Program:
The SBA is currently unable to accept new applications for this program but for the business owners that have already applied, this loan was made to provide an incentive to keep their employees on payroll. The SBA will forgive loans if all employees are still on payroll for eight weeks and the money is used for payroll, rent, mortgage, or utilities.
Processing the loan applications began April 3, 2020, and be available through June 30, 2020.
Who can apply? Here is a picture from the SBA website:
The loan will be fully forgiven if the funds are used for the items listed above and they will also be deferred for 6 months. Forgiveness is based on maintaining employee numbers and salary levels. Forgiveness will be reduced if the headcount of employees declines or salaries/wages decrease. The loan has a maturity of 2 years and an interest rate of 1%.
Click here to read more info and get some knowledge on another program called Enhanced Debt Relief.
Next is the Economic Injury Disaster Loan:
The SBA is unable to accept new applications at this time, but applicants will be processed on a first-come, first-serve basis. This loan is for small businesses suffering substantial economic injury as a result of COVID-19. The SBA is issuing this loan under its own authority.
This loan may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid in the current environment. For small businesses, the interest rate is 3.75% and for non-profits, it’s 2.75%.
Small businesses in the entire US are eligible to apply for this low-interest loan.
As you have seen, most adults will get $1,200, some less and some more. For every qualifying child under age 16 will be an additional $500.
To see the status of your check, you can go to the I.R.S. website.
Getting the full $1,200 will depend on your income. Single adults with Social Security numbers who have an adjusted gross income of $75,000 or less will get the full amount. Married couples with no children earning $150,000 or less will receive $2,400. And taxpayers filing as head of household will get the full payment if they have an income of $112,500 or less. Single people earning $99,000 or married couples who have no children earning $198,000 don’t qualify. And finally, you also don’t qualify if you are a family with two children whose income is higher than $218,000.
Look at your 2019 income to see where you fall. If you haven’t done your tax return, you can use your 2018 return. And if you haven’t filed that yet, you can use your 2019 Social Security statement showing your income.
College students and dependents don’t qualify for this stimulus check.
Checks have already started going out, so if you qualify be on the lookout for your direct deposit!
People who are unemployed, partly unemployed or cannot work will most likely receive benefits. Depending on your state will depend on how much you receive. Eligible workers will get an extra $600 a week on top of the state benefit. Self-employed people are newly eligible for unemployment benefits for up to 39 weeks through this time and will also be eligible for the extra $600.
Part-time workers are also eligible for benefits but it will depend on your state as it does for full-time workers. Part-time employees are also able to get the extra $600.
If COVID-19 is affecting you or your family and resulting in unemployment or partial unemployment, you will be covered.
The Federal Government has already waived 2 months of payments and interest for many federal student loans.
This article from the New York Times goes into more detail about stimulus checks, unemployment benefits, and student loans. It also covers retirement accounts and charitable contributions.
Hopefully, this sums up a lot of aspects that we are all trying to keep track of right now! Stay safe!