First and foremost, we hope you are healthy and safe!
As we’re all dealing with the effects of COVID-19 on our lives, We want to share encouraging news: the government has approved the $2.2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people in this critical time. Perhaps even you.
This sweeping legislation is unprecedented in the history of our nation and provides significant economic assistance to address the impact of COVID-19.
The CARES Act is over 800 pages long, but here are some of the economic provisions most relevant for you.
If you’re eligible for a cash payment
Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.
If you or someone you know has lost a job
States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
If you’re a small business owner
The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses who qualify for the Economic Injury Disaster Loan to cover immediate operating costs.
The Small Business Administration has rolled out the Paycheck Protection Program applications and guidelines. This program is a $350 billion program to provide loans of up to $10 million per business. Certain portions of that loan will be forgiven used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.
If you’re a freelancer or independent contractor
Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program that provides unemployment coverage through the end of the year to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits.
If you’re a property/homeowner
Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days.
Multi-family borrowers may request a similar forbearance for up to 30 days.
In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period.
If you would like to learn more about all the contents in the CARES Act,
please see this article.
CARES Act rent relief: https://www.investopedia.com/renters-how-to-get-covid-19-rent-relief-4800858
CARES Act mortgage relief: https://www.investopedia.com/how-to-get-mortgage-relief-4800539
Special interview for Kristen Wong, owner of Seasons Estate Planning:
Do You Have a Guardian Picked Out for Your Child?
We are prepared to be 100% virtual to take care of you and all of our clients as we navigate through this new normal by holding virtual open houses and home tours, video neighborhood walk-abouts, hosting market update coffee breaks to help clients stay informed and providing helpful tips and key information as the realities shift, and hosting Zoom meetings with interviews that will help guide us all through these challenging times.
Stay well, stay safe, stay positive. We’re going to get through this.
Please do not hesitate to reach out should you have any questions,
or if you would like to chat.
Stay safe and healthy.
All the best,
The Real Estate Dads
David Fein & Adam Rosal