09 Apr Millions of Americans Look For Relief Within the CARES Act
The CARES Act acronym has a lot of meaning by design. One of the goals of the Conronavirus Aid, Relief and Economic Security Act is to reduce the COVID-19 pandemic’s damage to the United States (U. S.) economy. A few of its key provisions are below:
Pandemic Unemployment Assistance (PUA). Generally, federal PUA benefits extend to individuals who do not normally qualify for regular unemployment benefits such as gig economy workers, self-employed and independent contractors. The Federal Pandemic Unemployment Compensation program provides for an additional $600 per week to individuals who are receiving regular unemployment compensation ending on or before July 31, 2020. (Source www.dol.gov) Contact your state’s department of labor to understand how it will implement the CARES Act. (See H. R. 748 CARES Act Section 2102, 2104 and 2107)
Economic Impact Payment (EIP). Generally, eligible U. S. citizens and residents are to receive recovery rebates (also referred to as stimulus checks). Per irs.gov, eligible individuals will receive $1, 200 and up to an additional $500 for each qualifying child. High income earners are subject to phase-out rules. For more information, review the Internal Revenue Service’s Economic Impact Payment Information Center on its official website. (See H. R. 748 CARES Act Section 2201)
Emergency EIDL grants (EIDL). Per sba.gov, this loan will provide economic relief to qualified small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue. For more information on the EIDL advance program, review the U. S. Small Business Administration’s official website. (See H. R. 748 – CARES Act Section 1110)
Paycheck Protection Program (PPP). Per sba.gov, this is an SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Generally, SBA will forgive loans if all employee retention criteria are met and the funds are used for eligible expenses. Check with your bank to determine if they will participate in the PPP. For more information on the PPP, review the U. S. Small Business Administration’s official website. (See H. R. 748 – CARES Act Section 1102 Section 1106)
The CARES Act was signed by the president of the U. S. on Friday, March 27, 2020. Typically, legislation such as the CARES Act has requirements, processes, etc. to receive the benefits (if any) therein. This legislation is voluminous and has several other key provisions to assist renters, students, schools, etc. Take on the task to become familiar with the specifics of the above provisions and/or work with a professional such as a Certified Public Accountant. Best wishes!
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