COVID-19 has taken an enormous toll on Americans, both personally and financially. As people deal with the effects of the disease or from the loss of a loved one, people also face increased stress due to losing jobs or businesses they have built over a lifetime. Well, help is available to many companies and individuals. Fortunately, this guide to COVID-19 economic disaster relief might help you find the financial support you need.
The CARES Act
President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27, 2020. But even if you have heard of the CARES Act, you may not know some of the details that could spell relief for you.
Programs created under the CARES Act are designed to provide
“fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for our American industries.”
Economic disaster relief provided through the CARES Act may take the form of:
- Economic Impact Payments – The federal government made direct payments of up to $1,200 to people whose income was less than $99,000. Parents also received $500 per child under age 17.
- The Paycheck Protection Program – Small businesses, eligible nonprofits, veterans’ organizations, and some tribal businesses could qualify for loans. However, companies were expected to use the money toward payroll and certain qualified expenses. The primary purpose, though, is to help workers stay employed as a form of economic disaster relief.
- The Employee Retention Credit – The Internal Revenue Service (IRS) may issue credits to employers for wages they paid or incurred from March 13, 2020, through December 31, 2020.
- The Coronavirus Relief Fund – This $150 billion fund provides support to state, local, and tribal governments impacted by the coronavirus pandemic.
As with most government programs, you may need to qualify for receiving some of the economic disaster relief offered under the CARES Act.
EIDL Loans and the SBA
Another result of the CARES Act affects programs already provided by the Small Business Administration (SBA).
For example, the Economic Injury Disaster Loan Program (EIDL) has been in place for years. EIDL loans are low interest and designed to provide economic disaster relief to people who live or own business in areas covered by disaster declarations.
The CARES Act expanded the scope of the EIDL program, allowing more resources to flow to qualified individuals and companies. In addition to the EIDL loan, the SBA also offers businesses EIDL Advances of up to $1,000 per employee.
Combining Economic Disaster Relief
It’s important to note that some of the relief programs overlap or affect each other. For example:
- You can get a PPP loan and an EIDL loan, but you must use the funds for different purposes.
- EIDL Advances may be deducted from PPP loan forgiveness amounts.
As we head into recovery, it pays to explore all your options for economic disaster relief.
Call to Discuss Your Legal Needs
If you are interested in the matters discussed in this blog, be sure to call us for a free consultation or leave a comment.
At the Dailey Law Firm, P.C., our team of skilled lawyers and professionals provide sound and current legal representation that you need. Call us at 844-342-5353 to set up a free consultation or use the Contact Form on our website. Additionally, there’s no fee for personal injury cases unless we win.
We represent clients throughout the entire United States. You can reach us online or visit one of our offices in Detroit, Michigan; Chicago, Illinois; or Valparaiso, Indiana.