• CARES ACT Update

    The CARES Act was passed at the federal level on March 27, 2020, and legislators and other are working on its implementation. You can also see the full list of COVID-19 resources here.
     
    Paycheck Protection Program - Federal Loan
    $350 billion to small businesses / 100% federally guaranteed loans to small businesses who maintain their payrolls during the COVID-19 crisis to be used for payroll, mortgage interest, and other qualified expenses. Loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
     
    Eligible businesses:
    o  A small business with fewer than 500 employees
    o  A small business that otherwise meets the SBA’s size standard
    o  A 501(c)(3) with fewer than 500 employees
    o  An individual who operates as a sole proprietor
    o  An individual who operates as an independent contractor
    o  An individual who is self-employed who regularly carries on any trade or business
    o  A Tribal business concern that meets the SBA size standard
    o  A 501(c)(19) Veterans Organization that meets the SBA size standard
     
    Most likely, all current financial institutions that offer SBA Loans will be selected to implement the ACT.
     
     
    Changes/expansions to the SBA Economic Industry Disaster Loans (EIDLs)
    EIDLs are now also available to Tribal businesses, cooperatives, and ESOPs with fewer than 500 employees. They are also available to all non-profit organizations, including 501(c)(6)s, and to individuals operating as sole proprietors or independent contractors.
    Borrowers can apply for a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.
    For more information: Small Business Development Center at Salem State U'ty: Kaitlin Muldoon: kmuldoon@salemstate.edu.
     
    Payments for Individuals
    ·      Individuals who make less than $75,000 a year will receive direct payments of $1,200 per individual ($2,400 joint return)
    ·      Plus $500 per child
    ·      This will phase out for incomes above $75,000 ($150,000 joint filings).
     
    Extra Unemployment Benefits
    ·      An additional $600 per week in unemployment from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
    ·      Unemployment insurance has been expanded to last 39 weeks.
     
    Health Insurance Coverage
    ·      All private insurance plans must cover COVID-19 treatments and vaccine

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