On Friday, March 27, 2020, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2.2 trillion stimulus package, designed to alleviate the impact of the Covid-19 epidemic on individuals and businesses.
While the CARES Act provides substantial benefits to small- and, in some cases, mid-sized businesses which will be discussed at length in another Legal Alert, individuals struggling during this pandemic should be mindful of the following provisions of the CARES Act to take advantage of:
Direct Payments to Taxpayers
Single individuals with an adjusted gross income of $75,000 or less will get a one-time payment of $1,200. Married couples with no children earning $150,000 or less will receive a total of $2,400. Those with children will get an and an additional $500 per each child. The payment will scale down by income, phasing out entirely at $99,000 for single individuals and $198,000 for married couples without children.
Extension of Unemployment Compensation Benefits
Individuals who are not working, working part-time, or are too sick to work will get $600 per week for four (4) months from the federal government in addition to the state benefits they will receive. In addition, the federal government will cover an additional 13 weeks of extended benefits beyond that of the states.
Significantly, this benefit will cover those who do not meet the definition of “employee” such as independent contractors, gig workers, and self-employed individuals.
Student Loan Payments
There will be automatic payment suspensions until September 30, 2020 for any student loan held by the federal government.
Foreclosures and Evictions
Individuals and entities with mortgage loans affected by the virus can obtain forbearance on their federally backed mortgages for up to 60 days, with a possible extension of 4 more periods of 30 days. Servicers of federally backed mortgages are barred from beginning any foreclosure proceedings for 60 days. Fees, penalties and additional interest cannot be charged for delayed payments.
As for individuals and entitles with federally backed mortgage loans on multifamily properties, they can receive 30 days of forbearance with up to 2 additional 30-day periods available. In exchange, they may not evict tenants for failure to pay rent for 120 days and may not charge penalties or fees for nonpayment of rent.
If you have a question about any options available to you under the CARES Act, please email us at firstname.lastname@example.org and, in the email, provide your name and contact information and an attorney at Nochumson P.C. will respond accordingly.