Community Convo - Get Stimulated
Late last week, the $2 Trillion Coronavirus Stimulus Package was released. Included are stimulus payments for individuals and families, as well as specific loan programs that the government is enacting to help stabilize the economy and ensure that there are no lapses in our rent and mortgage payments, food, medical, and other personal expenses. We know that this is an uncertain time for us all, so we’d like to share some of the ways that these programs can help us all to feel a little more secure.
The first commercial loan program offered in the stimulus package is the COVID-19 Economic Injury Disaster Loan (EIDL), which allows small business owners to apply for an advance of up to $10,000, with the goal to provide economic relief to businesses that are experiencing loss of revenue due to the Coronavirus pandemic. Funds are expected to be available within three days of successfully applying, and do not have to be repaid if used towards rent, payroll, and utilities. The link to apply for the EIDL loan is https://covid19relief.sba.gov/#/
The second commercial loan that is offered is the Paycheck Protection Program. This loan guarantees an amount of 2.5 times your average monthly payroll, and if that money is used to pay your employees, rent, and utilities, it becomes a grant - the amount of the loan that is used specifically towards payroll, mortgage interest, rent, and utilities would be forgiven. This plan is retroactive till February 15, 2020 to help bring any employees who may have been laid off back onto your payroll.
These forgivable loans are available immediately through local lenders, so the sooner you apply through your bank, the faster you can start receiving assistance. It is recommended to use your current bank that you have a previously established relationship with for the easiest and most expedient way to get funding.
For individuals and families, a one time stimulus payment is included in the new package. A payment of $1200 will go to individuals with a gross income of $75,000 or less. Married couples with a gross income of $150,000 or less will get $2400. For every qualifying child age 16 or under, the payment will be an additional $500. The payment amount decreases with higher incomes, and any individual making $99,000 and above, or married couples making $198,000 and above, will not get a stimulus payment. These payments are based on the individual's 2019 tax return and are expected to be direct deposited into most bank accounts within three weeks.
We understand that the past few weeks have been difficult and mentally exhausting. Between isolating ourselves, worrying about our families and careers, and feeling uncertain about the state of the world, it is indeed an overwhelming period of time for us all. We hope that the release of this stimulus package helps you to feel your own sense of stimulation, and find a little bit of hope and peace while we continue to weather the storm.
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