Helpful Tips for Using the Coronavirus Stimulus Package

It seems that most of us have no problem keeping up with breaking news in these “constrained” times. Businesses around the country are battling to stay open, and schools across the country may be shuttered for weeks, if not months, as a result of the current round of quarantines and shutdowns. In the wake of the worst jobless figures seen in a generation, retirement plans are adjusting to the market’s decline. The latest and largest authorised stimulus package in U.S. history, however, is also familiar to many of us – a light in the middle of all this gloom.

More than $2 trillion was budgeted for the stimulus plan to assist Americans in these difficult times. For the vast bulk of the population, this means a check for $1,200. However, the stimulus package offers aid in many other beneficial ways.

However, even while some individuals have the opportunity to study the 900-page measure in its entirety right now, most people don’t have the time to do so. To that end, we wanted to highlight some of the particular aspects of the CARES Act that would have an impact on you.

As a homeowner, small company owner, freelancer, or recently laid off, you may all profit from this program.

Our first concern is to keep our customers and employees safe during this unpredictable period. If you have any questions, please don’t hesitate to reach out to us. We, at the Foran Financial Group, are here to help.

Forbearance on a mortgage

Homeowners may request mortgage forbearance, or delay of their monthly mortgage payments for up to 12 months, under the CARES Act of 2009. If you’re eligible, you’ll get a minimum of a 180-day reprieve from making mortgage payments. It is necessary to meet a number of requirements. This is a government-backed mortgage, such as a USDA or FHA loan, and you must be enduring financial troubles due to the pandemic in order to apply. If the property has more than five, you may still qualify, but you will need to provide evidence of hardship.

If you have a jumbo mortgage, you may also be eligible. Nevertheless, your odds of being accepted aren’t as good as they would be with a standard mortgage loan. Even while the borrower will not be charged interest or penalties for the delay, the homeowner is still liable for making these payments, which will very certainly be added to the loan’s final balance later on down the line.

Call your mortgage servicer to find out about their forbearance policy first.

Relief for Contractors and Owners of Small Businesses

Entrepreneurs, small company owners, and freelancers may apply for up to $2 million in disaster aid through the Small Business Administration’s Economic Injury Disaster Loan (EIDL). To compensate for short-term income losses, the objective is to find a solution. Interest rates for small enterprises and organisations are set at 3.75 percent and 2.75 percent respectively. An average grant of up to $10,000 is awarded to those who apply for these loans. The most up-to-date and simplified application procedure may be found here.

There are no restrictions on who may apply for this loan, as long as they have less than 500 workers, and it is reported that everyone who applies will get a share of the $10,000 forgivable grant immediately, even if they aren’t accepted for the loan themselves.

The SBA Express Loan is still available. Low-interest rates and a loan amount of up to $25,000 are offered on this standard seven-year loan. Many of the stimulus loans and programs are geared toward helping small company owners meet expenses such as employee salaries, rent, insurance, and other essentials.

The SBA Express Loans are processed via banks, so you should contact your local branch to learn more about your alternatives.

The Paycheck Protection Program is another kind of loan that many individuals are unaware of (PPP). As long as you satisfy certain requirements, the PPP may be eligible for a grant of up to $10 million in low-interest loans. The whole loan amount may be granted for a pardon if it qualifies as a grant and does not need a repayment.

All the PPP does is help small firms pay their workers and rehire those who may have been laid off lately because of the Coronavirus outbreak. Contact your personal banker as soon as possible for additional guidance on how to proceed with these loans, which are handled and maintained by banks.

Benefits for Unemployed People

3.3 million Americans have applied for jobless benefits as of March 21, 2020. The previous record of 695,000 submissions was smashed. Up to 14 million people in the United States may be without work by the end of the summer. Full-time W2-covered positions that were lost due to no fault of their own are covered by standard unemployment insurance. The typical 26-week period was covered by the program, which compensated for 45 percent of missed income.

Part-time employees, freelancers, independent contractors, and people who have a job but have cut down on hours may be eligible for increased unemployment insurance benefits under the stimulus package. The weekly unemployment compensation is boosted by $600, and the payments are extended for an additional 13 weeks. What you get and how long it lasts will be determined by your prior earnings.

Deferrals of Taxes

The tax-filing date has been extended to July 15, 2020, adding three months to the usual April 15 deadline. No tax payments are due on your 2019 profits till now.

When it comes to taxes, everyone’s circumstance is unique, therefore it’s advisable to consult with your CPA or tax expert for advice and guidance.

Do Not Forget This

In light of the present budgetary constraints, loans and grants are being disbursed in a first-come, first-served fashion. In the midst of the commotion, we must try our best to keep our heads held high. If you want to succeed in life, even if you live in a little space, you can’t just sit back and do nothing. Foran Financial Group’s financial experts are available to answer any questions you may have about your investments.

Try to keep your cool. Aim for the long term. And don’t allow a turbulent stock market to get in the way of enjoying life.

If we’re going to get out of this quarantine unscathed, we need to look on the bright side.

As a Registered Investment Advisor (RIA) Member FINRA/SIPC, LPL Financial provides securities and advisory services.

Only residents of the states in which Foran Financial Group’s financial experts are fully registered or licenced may converse or do business with them. Any offers or acceptances from residents of other states are prohibited.

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