I did some research on the Coronavirus Relief Bill that was passed this week and I wanted to share my findings. The following information comes from NPR.org.
A $2 trillion coronavirus response bill was passed by the Senate to provide relief for individuals and businesses during the economic freeze in America. Senate Majority Leader Mitch McConnell, R-Ky., describes the legislation as the CARES Act and advised the following:
“No economic policy can fully end the hardship so long as the public health requires that we put so much of our commerce on ice.”
“This isn’t even a stimulus package. It is emergency relief. Emergency relief. That’s what this is.”
The seven groups impacted by the bill include individuals, small businesses, big corporations, hospitals and public health, federal safety net, state and local governments, and education.
- Cash payments estimating to a total of $300 billion will be issued to individuals and families. Individuals earning less than $75,000 will receive a one-time payment of $1,200; married couples will receive individual checks; families will receive $500 per child. And these payments are based on your 2018 and 2019 tax filings.
- Unemployment payments of $260 billion will be issued out. The bill adds $600 per week from the federal government on top of the base amount received from the state. 13 weeks of unemployment insurance will also be added.
- Freelancers and contractors who’ve lost their job will be able to apply for unemployment; the deadline for filing 2019 tax returns has been extended to July 15 and those expecting a return will receive them; employers will be able to provide up to $5,250 in tax-free student loan repayment benefits; all insurance plans will cover COVID-19 treatments, vaccines, and tests.
- $10 billion for grants up to $10,000 will be for emergency funds for small businesses, $350 billion will be for loans up to $10 million per business, and $17 billion will cover 6 months of payments for SBA loans.
- The bill will set aside $500 billion in loans for big corporations, and it will also establish a fully refundable tax credit to help keep employees on the payroll; 50 percent of payroll will be covered on the first $10,000 of compensation, including health benefits.
- $100 billion will be given to hospitals responding to COVID-19. $1.32 billion will be given to community centers, $11 billion will be for diagnostics, treatments, and vaccines, $80 million will be for the Food and Drug Administration, $4.3 billion will be for the Center for Disease Control and Prevention, $20 billion will be for veterans, and $16 billion will be for the Strategic National Stockpile.
- $8.8 billion will be given to schools for meals for students, $15.5 billion will go to the Supplemental Nutrition Assistance Program, $450 million will go to food banks.
State and Local Governments
- $339.8 billion will go to state and local governments.
- All loan and interest payments will be deferred through September 30. and all unused work-study funds can be turned into supplemental grants
To check out the full breakdown, click here. If you have any additional information, feel free to comment below.
Until Next Time…