There has certainly been a lot of talk over the past few days about just who gets what after the passage and the signing of coronavirus economic relief plan last week. Many are now expecting a check from the government, while many others are wondering if they will get one. That’s been one of the bigger headlines, because hey, free money at a time when many people could really use it.
Even then, though, it can be a little confusing about just how much one will receive. It has also become so big that a lot of other benefits have received less notice. These include things like unemployment benefits, some student loan help, changes in how you can get money out of a retirement account, and a potential added tax deduction for charitable donations.
There is so much information that it can feel overwhelming, but pushing through it is worth it because when used correctly it can mean that many affected during these economic struggles can end up in similar (or even better) positions than they were before the crisis. This will take a little patience and a few difficult weeks, but that just means it is even more important to utilize the help that is being offered.
Just how this works can be different depending on your personal situation. The New York Times has a great Q&A about the stimulus package located here that answers many questions of different types.
Here is to hoping that you and those close to you are staying safe and well.
The funding for this program has been replenished as of 4/24. If you have not submitted an application, we recommend you work with a local community bank for better service, as the national banks seem to be overwhelmed.
During a time when many are not working and increasing numbers of businesses are thinking they may have to lay off employees, a government program for loans to maintain payroll during the current economic crisis is a novel and welcome move. The fact that some of the money borrowed could then be forgiven (depending on what you use the money on, especially if payroll) makes the program even more attractive.
The program is called the Paycheck Protection Program and was part of the $2.2 trillion coronavirus stimulus bill signed into law last week. In fact, $349 billion of that total was set aside for the PPP. If you want to know more about how this works, this article from Fortune gives a very good summary of the details.
Getting one of these loans will involve applying through an institution that already offers SBA loans (starting April 3). The best bet is to contact your current bank and inquire about the program.
Some other issues of note, if you are also planning on using the employee retention tax credit, you cannot do both that and get PPP loan forgiveness. And if you already applied for an EIDL loan, it is not an either-or proposition, you can also apply for a PPP loan and the EIDL is expected to be rolled into if that turns out to make sense for you.
For official information from the Senate on this, click here.
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