Government Stimulus Package Brief Breakdown

Government Stimulus Overview and Requirements

The Government just passed a $2 trillion stimulus package. The stimulus package has a lot of layers that will affect a lot of people. Here is a brief breakdown of the different scenarios.

Stimulus Checks:

$1,200 for individuals, $2,400 for couples, $500 per child under the age of 17
The payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.
These figures are based on Adjusted Gross Income (AGI)
The money will be automatically deposited into your checking account if you E-Filed and had your refund or balance paid through your checking account. If not, they will mail the check using the address on your most recent filed tax return.
Income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 tax returns.
CNN article

Unemployment Insurance

For people who are unemployed and filed for unemployment insurance through their state will receive regular benefits.
The government will provide an additional $600 on top of the regular benefits, for four months.

Small Business

Company must have few than 500 employees.
Loans must be requested at SBA.gov.
Businesses can receive loans up to $10 million, based on how much the company paid its employees between Jan. 1 and Feb. 29. The loans will carry an interest rate that can be as high as 4%.
If the business uses the loan funds for the approved purposes and maintains the average size of its full-time workforce based on when it received the loan, the principal of the loan will be forgiven, meaning the company will only need to pay back the interest accrued.

Large Business Funds (these will not apply to anyone individually)

This includes $25 billion in grants for the passenger airlines; $25 billion in loans for passenger airlines; $17 billion for companies deemed critical to national security; and $425 billion for other businesses, cities and states, allocated through funding mechanisms set up by the Federal Reserve. The $17 billion for firms essential to national security was written largely to benefit the aerospace manufacturer Boeing.

If you believe this will affect you, please reach out to us and let us help!

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Mar 26, 2020