CARES Act – What This Means for You and Your Family

In some encouraging news, the federal government just passed the largest ever stimulus package in our nation’s history, a $2.2 Trillion fund called the Coronavirus, Aid, Relief, Economic, Security (CARES)Act. To read the entire 800-page legislation would be a daunting task, so we put together a brief summary for you of what this means to you and your family.

For Homeowners

Under the new plan, any federally-backed mortgage allows (or may allow) you to suspend payments for up to 12 months. This is without fees, interest, penalties or reporting to creditors. Additionally, foreclosures and evictions will be suspended for at least 60 days. Whether your mortgage IS or IS NOT federally-backed, contact your loan servicer to find out what options are available to you.

Stimulus Payments

Most adults will get a one-time $1,200 payment with married couples receiving a payment plus $500 per child. However, this depends entirely on income. You will qualify if you are a single adult with an adjusted gross income of $75,000 or less, or you are a married couple with no children earning $150,000 or less, or you are a head of household and earned $112,500 or less.

Unemployment Benefits

States will continue to pay unemployment benefits, but you should be eligible for an extra $600 per week. This extra payment will last four months. They are also expanding those qualified to include partly unemployed or those who cannot work for coronavirus-related reasons.

Student Loans

Until September 30th, there will be automatic payment suspensions for any federal student loan. This will occur without accruing interest during the suspension period. Check with your loan servicer.

Small Businesses

Out of the $2 trillion stimulus package, $370 billion is allocated to small businesses. Backed by the SBA (Small Business Association), this bill will allow banks to lend directly to businesses. Small businesses may also qualify for up to $10,000 to cover immediate operating costs. This is outlined in the Economic Injury Disaster Loan.

For more information: The NY Times wrote an excellent article summarizing the details of the bill.

Read Now: F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Plan