COVID-19 Update: CARES Act Summary

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Anyone in the world will tell you that we are definitely living in times of uncertainty. COVID-19 of 2020 has ravaged the world causing mass layoffs, business closures, and financial strain. Furthermore, social distancing guidelines (Link) enacted by President Donald J. Trump has drastically changed the way individuals communicate, work, and interact. If you are feeling overwhelmed and afraid, trust I understand as we are all in this together.

In the midst of the chaos, the United States Congress has passed H.R 748, also known as the CARES Act, designed to alleviate the financial burden caused directly by COVID-19 on individuals, businesses, and the healthcare system.

In this blog, I have summarized the CARES Act as it relates to middle and lower-class working individuals, small business owners, and hospitals. If you are an individual, middle-age, or an older adult looking for a reference on what to expect as it relates to your health, business, and/or finances; hopefully you will find this blog particularly helpful. Without further ado, let’s dive into this content.

Brief Background of the CARES Act

On Friday, March 27, 2020, President Donald J. Trump signed the H.R. 748, The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law, which is the biggest economic relief package in American history. The bill will provide a total of $2.2-$6.2 trillion to help stimulate individuals, businesses, and organizations that have been directly impacted by COVID-19.

COVID-19 is one of only 8 pandemics that the world has experienced since the 1900s. As per the date of this blog, the U.S. has reported 140,904 cases of COVID-19, and 2,405 deaths.

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The following information will highlight the CARES Act for individuals, small businesses, and the overall healthcare system.

Individual/Family Relief

African American Family smiling wile stting on a couch. Used to display CARES ACT benefits for families/individuals.

As mentioned above, $300 billion in (tax-free) aid will be sent as a direct payment to American Citizens making less than $99,000 individually and $198,000 for married couples filing jointly.

Individuals who made less than $75,000 on either 2018 or 2019 tax return (depending on the latest one received by the IRS), head of households who made less than $112,500, and married couples who made less than $150,000 will receive the FULL amount as listed below:

Individuals: $1200
Married couples: $2400 ($1200 for each adult)
Head of household will receive $1200
Head of household and married couples with children will receive $500 for each child.

Individuals who made between $75,000 and $99,000 and married couples who made between $150,000 and $198,000 will receive a PORTION of the full amount. For every $100 amount that an individual/married couple makes over the limit, they will receive $5 less.

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For example: For an individual who has made $85,000 on their 2019 tax return, or 2018 (if still have not filed 2019’s return), this individual will receive $700.

Individuals making over $99,000, and married couples making over $198,000, unfortunately, will not receive a stimulus check.

Unemployment Relief

Unemployed Multicultural man distressed.

I must say that the CARES Act was very generous on workers who have either been laid-off or furloughed as a direct result of COVID-19, so much so that people of congress have called this “unemployment on steroids.” Approximately $250 billion will be allocated to extending unemployment benefits. This amount, however, is subject to change based on how many people apply for unemployment benefits.

The bill aimed to pay 100% of the salary for those individuals who are laid-off or furloughed as a direct result of COVID-19, for up to 4 months.

The state will provide regular unemployment benefits to those individuals who qualify. However, as a result of the CARES Act, individuals will receive an additional $600 per week for 4 months on top of what the state offers for unemployment.

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Also, unemployment benefits have been extended from 26 weeks to an additional 13 weeks, for a total of 39 weeks of unemployment benefits.

This bill also extended unemployment benefits to include freelancers and those who are self-employed.

Small Business Relief

Young Caucasian woman working in a restaurant. Small Business Owner

This portion will outline the CARES Act stimulus plan as it relates to small businesses; companies with 500 or fewer employees. The stimulus package has delegated $350 billion in loans to small businesses. Below is just a brief summary of the aid package to small businesses, I encourage those who have small businesses to visit https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources for additional information.

Forgivable Loans: The Paycheck Protection Program authorizes $349 billion toward job retention and other expenses as it aims to protect millions of Americans who are employed by small businesses.

Eligible businesses may qualify to receive up to $10 million-plus an additional 25%. These loans can be deferred for up to 6 months. If businesses maintain their current workforce for 8 weeks after receiving the loan, these loans may be forgiven provided small businesses use the loans for:

Rent/Mortgage
Utilities
Payroll

Small Business Grants: Small businesses in all 50 states qualify for an Economic Injury Disaster Loan in the amount of $10,000. This loan is to help provide assistance to small businesses that are experiencing a loss of revenue as a result of COVID-19. The small business grants are forgivable.

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Small Business Debt Relief: The Small Business Association (SBA) will cover the cost (principal and interest) of businesses currently using 7(a) loans for up to 6 months. The SBA will also cover the cost of 7 (a) loans for small businesses that receive the loan prior to September 27, 2020.

Hospital/Healthcare Relief

Multiple male and female hospital workers standing with gowns, masks, and gloves.

According to President Donald J. Trump’s remarks (Link), $100 billion will be used to directly support doctors, nurses, and hospitals. This fund will be used for necessities such as supplies, hospital personnel training, and Medicare reimbursements.

$45 billion will be allocated to the Disaster Relief Fund local, state, and tribal leaders. And $27 billion will be used for public health response efforts as well as creating vaccines and other treatments to address COVID-19. $16 billion will go toward helping to build stockpiles of necessary supplies such as ventilators and masks.

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In addition, patients who are suspected to have acquired COVID-19 can receive testing at no additional cost. Other healthcare industries that will be receiving assistance include Veteran’s Healthcare, Telehealth, and the Centers for Disease Control and Prevention (CDC).

ALLEY TIPS:

Telehealth has been extended to include Physical Therapy in addition to Occupational Therapy services. If you are in need of therapy, contact your insurance company on how you can complete your sessions via telehealth.

In addition, many insurance companies are now covering the cost of COVID-19 treatments as part of their insurance plan. Please talk with your healthcare insurance provider to receive information on additional benefits.

In closing, we can all help to stop the spread of COVID-19 by following The President’s Coronavirus Guidelines for America (Link). In addition, I have written a blog that can be found at https://rehaballey.com/coronavirus-flu-virus-viruses-and-how-older-adults-can-protect-themselves/ highlighting facts about the coronavirus, the flu virus, and viruses in general as well as standard precautions to prevent the spread of these viruses as outlined by the World Health Organization (WHO), and the CDC.

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Hopefully, this article briefly summarizes the CARES Act and helps to provide some relief to you, knowing that there are options for financial assistance during these hard times. So stay safe, be healthy, and as always GOD BLESS YOUR ENDEAVORS!!