She didn’t directly mention the Paycheck Protection Program – by far the largest loan program in the agency’s nearly 70-year history – but acknowledged the turmoil many companies are experiencing.
The second stimulus
Answers to your questions about the stimulus calculation
Updated December 30, 2020
The economic aid package will issue payments of $ 600 and distribute federal unemployment benefits of $ 300 for a minimum of 10 weeks. Find out more about the measure and what’s in it for you. For more information on how to get help, please visit our hub.
- Do I get another incentive payment? Individual adults with adjusted gross income on their 2019 tax return of up to $ 75,000 per year will receive a payment of $ 600, and a couple (or someone whose spouse died in 2020) who earns up to $ 150,000 per year receives twice this amount. There is also a payment of $ 600 for each child for families who meet these income requirements. Individuals filing taxes with head of household status and earning up to $ 112,500 will also receive $ 600 plus the additional amount for children. People with incomes just above this level will receive a partial payment that decreases by $ 5 for every $ 100 of income.
- When could my payment arrive? The finance department said on December 29 that it had started making direct deposits and would be mailing checks the next day. However, it will take a while for everyone to receive their money.
- Does the agreement concern unemployment insurance? Legislators agreed to extend the length of time people can receive unemployment benefits and restart an additional federal benefit that is on top of the usual state benefits. But instead of $ 600 a week it would be $ 300. That will last until March 14th.
- I am behind on my rent or expect to be soon. Do I get relief? The deal calls for $ 25 billion to be distributed by state and local governments to help backward tenants. In order to receive support, households must meet various conditions: the household income (for 2020) must not exceed 80 percent of the area median income; At least one household member must be at risk of homelessness or residential instability. and individuals must be eligible for unemployment benefits or face direct or indirect financial difficulties due to the pandemic. The agreement states that priority will be given to support for lower-income families who have been unemployed for three months or more.
“So many small businesses across the country have been devastated by the pandemic and economic crisis,” Ms. Guzman said. “As is so often the case, there has been a disproportionate impact on our black-owned businesses.”
Most of the program’s financiers, including some of the country’s largest banks, plan to resume lending. Bank of America, JP Morgan Chase, Cross River Bank and Wells Fargo, which together have issued more than a million loans, have announced that they will file applications as soon as the SBA gives them the green light.
Bankers said their borrowers are asking for a second loan.
“We believe we will likely face a very harsh winter before the vaccine becomes more widely available and we expect demand to be quite high,” said John Asbury, general manager of Atlantic Union Bank in Richmond, Virginia. the first iteration of the program extended more than 11,000 loans.
The aid loans, which are supported by the government but issued by banks, are to be granted as long as the borrowers use most of the money to pay their workers. The rare offer of essentially free money has been a lifeline for entrepreneurs grappling with the forced shutdowns from the pandemic and other economic shocks.
Holly Schaffner, the owner of Mrs. Turbo’s Cookies, an Ohio bakery, received two PPP loans totaling $ 48,000 for her two businesses. Before the pandemic, it had 20 employees; In March, when the crisis hit and it had to be temporarily closed, its employees dropped to six. Their sales fell by up to 70 percent in a few months last year.
The relief loans enabled her to reinstate several people she had fired. “If it hadn’t been for that money, I wouldn’t be sure I would have had the revenue to do a paycheck,” she said. “It was incredibly helpful.”