Due to the pandemic, businesses around the United States are struggling to make ends meet, since most were closed down during lockdowns and social distancing orders. And the many more people who have lost jobs are also struggling.
This means that individuals are missing out on income, and those who own a business are seeing reduced revenue, opportunity, and trade. Wages are not being paid, and proper benefits are not being given to the workers. Fortunately, the government is offering free stimulus checks to individuals. Learn more about these checks below!
Many are applying for unemployment, shutting their businesses, and filing for bankruptcy. The government is offering a stimulus package to help in these times of need.
The CARES act is poised to provide an estimated $2.2 trillion to businesses and taxpayers within the U.S. This is the third phase of the biggest relief package that significantly surpasses what was provided in 2008 by the U.S. Congress. The CARES act gives critical aid in the form of direct payments to families and individuals, as well as larger packages to healthcare providers, businesses, and corporations that qualify.
The CARES act also offers assistance to businesses and individuals who do not meet the criteria for the packaged payments.
The Act offers relief for those who are not normally included in the unemployment benefits, such as part-time workers. Businesses that previously did not qualify for loans can apply with eased terms such as loan forgiveness programs. Basically, the key provisions for this act are to offer relief to businesses, individuals, and families in harsh economic periods as a result of the COVID-19 pandemic.
Here are the basic groups qualifying for stimulus money:
There are a few changes taking place compared to the first round of stimulus payments, such as extended unemployment benefits and changes to how you file your taxes and make your retirement contributions. The estimated cash payments are sitting at a total of $300 billion.
If you are earning less than the $75,000, then you most likely qualify for the $1,200 payment. Families are entitled to $500 per child. If you are a family of four and are earning less than $150,000, then you are looking at a $3,400 cash payment.
The focus for small businesses is offering grants and forgivable loan payments for those with under 500 employees. There have been changes made for expenses and deductions, so it is now easier for businesses to keep their employees employed and continue to keep their doors opened.
An estimated 500 billion has been set aside for big companies. Those corporations will be subject to public disclosures and will be required to pay the government back.