The federal government is actively working on an economic stimulus package that will provide trillions of dollars to relief to the American economy. As of March 25, the legislation has passed the Senate and is being debated in the House of Representatives. Reports from the House of Representatives indicate that a bill will be ready to present for the President’s signature very soon.
Direct payments of $1,200 to most individuals making up to $75,000 per year, or $2,400 for couples making up to $150,000 per year. Each dependent child increases the payment by an additional $500. The payment amount decreases for individuals with income above $75,000 and payments end for those with income above $99,000.
Expanded unemployment benefits that boost the maximum benefit by $600 per week and provide laid-off workers their full pay for four months. This will likely extend to independent contractors and self-employed people.
STATE GOVERNMENTS & HOSPITALS
$130 billion for hospitals and $150 billion for state and local governments.
LARGE BUSINESS LOANS
$500 billion for loans for larger industries, including $25 billion for airlines, $4 billion for carriers, $3 billion for aviation contractors, and $17 billion for critical national security businesses.
SMALL BUSINESS LOANS
$367 billion in loans for small businesses. These loans will be for businesses with less than 500 employees and can be used for payroll, mortgage, rent, utilities, and debt payments. The amount of the loan will be the sum of the average monthly payments of:
Mortgage and rent payments
Interest payments on debt for the one-year period before the loan date multiplied by four.
These loans may be forgiven, meaning the business will never have to pay the government back, if several conditions are met:
You have the same average number of employees per month from March 1, 2020, to December 31, 2020, as you had from March 1, 2019, to December 31, 2019.
You do not reduce compensation more than 25% of total salary and wages paid during the most recent full quarter before the period from March 1, 2020, to December 31, 2020, for any employee who did not receive annualized pay of more than $100,000 in 2019.