Congress passes and the President signs a record economic stimulus law. Freshly pulled from the government acronym generator, The Coronavirus Aid, Relief, and Economic Security Act, otherwise know as CARES.
It’s 883 pages of bedtime reading material that maybe we didn’t have to pass to see what’s in it…but we’ll likely pass out before we read everything in it.
This is your Sports Center version…just the highlights. We already tackled your payments. How much you’re getting, when and where, in another video. We looked at retirement plan distributions and found the 10%, 59.5 years age penalty on the disabled list. Meantime, Required Minimum Distributions were put on waivers for 2020. Be sure to check those videos for details.
Today we’re digging into the best of the rest.
When your finances are down a set and a break, the priorities are keeping a roof over your head, food on the table, and the lights on. Not a lot of love for student loans. But that’s Ok because payments and interest on federal student loans are suspended until September 30th.
You can still make payments if you choose, but you don’t have to. You do have to contact your loan provider to implement the suspension.
We saw the huge jump in unemployment claims to more than 3-million. And it’s likely to go higher until we work through this crisis.
Good news for those making claims. The usual one-week waiting period is eliminated.
The CARES Act also bumps up payment amounts by $600 per week. That’s up to $600 on top of the usual amount states pay which averages less than $400 a week nationwide.
And folks who otherwise wouldn’t be eligible for unemployment compensation, like the self-employed, are eligible for up to 39-weeks of assistance.
And there are some relief provisions for small business owners. The Paycheck Protection Program offers a partially forgivable loan through the Small Business Administration. To qualify, businesses must have fewer than 500 employees and certify they need the loan due to conditions caused by the virus.
Loans may be made up to $10-million and 10-years…with a maximum interest rate of 4%. Keeping folks employed and on payroll is the goal.
There’s a lot to dissect, analyze, and apply in nearly 900 pages. Be sure to watch my other recaps on payments and distributions.
Unless I happen to be your financial advisor, don’t take specific advice from some guy on a website or social media who doesn’t know your unique situation.
Stay healthy my friends.