The federal government has approved the $2.2 trillion (that’s more than two million millions) Coronavirus Aid, Relief and Economic Security (CARES) Act which will help millions of people during this critical time.
As small firm architecture business owners, many of us may benefit from this historic legislation. Below are a few economic provisions that may apply to you.
To read and review the entire CARES Act text click here.
You may be 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.
You may receive additional unemployment payments if you lost your 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.
$10 billion for emergency small business loans.
The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses that qualify for the Economic Injury Disaster Loan to cover immediate operating costs.
There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan 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.
Listen to our friends over at Inside the Firm Podcast for their commentary on this section of the bill.
Freelancers and 1099s are covered for unemployment too!
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.
Deferred mortgage payments on your personal property.
Borrowers of federally-backed mortgage loans can request a loan deferment 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.
Additional COVID-19 information and resources for small firm architects.
We will continue to provide information to the EntreArchitect community as it becomes available. Visit our COVID-19 Economic Relief for Small Firm Architects resource page for more information.
Do you have more information to provide to the community? Post your thoughts, your links, and suggestions in the comments below. We will post relevant COVID-19 relief information to the resource page.
Stay safe. Stay healthy.