It’s early, but information concerning the Coronavirus Aid Bill that has made its way through the Senate are being released. This information and additional updates will be released throughout the day, however, here are a couple of important facets of the Bill that are being shared by the media:
- Checks for $1,200 for people making up to $75K per year would be sent out. Apparently, these checks are to be based on the 2018 tax returns filed.
- There is a “phase out” provision within the bill whereby highly comped individuals would receive no funding.
- $2,400 would be issued to couples making up to $150K yearly with similar phaseouts based on their level of income.
- An additional $500 per child would be paid out to families.
- The Bill includes $100B in assistance for hospitals dealing with the virus outbreak.
- $350B in assistance has been allotted for “small businesses.”However, this sum could increase dramatically, should this Bill be revised or through a subsequent initiative by the federal government.
- Some estimates are that that additional funding would be measured in the trillions of dollars.$500B in assistance for “corporations” is included.
This Bill is considered to be a “Phase 3” initiative and is focused on relief from the financial impact of the virus outbreak. There is discussion regarding a Phase 4 Aid package that would then focus on stimulating the economy. That package is said to involve as much as another $4T in funding from the federal government.
As we all work our way through this crisis, many financial advisors are suggesting that small businesses contact their bankers and maintain regular communication with them. We have been in communication with various financial institutions, such as Chase Bank, and their representatives are telling us that the banks are deferring some loan payments for small businesses and individuals up to 90 days to help them to get past the financial downturn being experienced by most. Basically, if you don’t ask your banker about such opportunities for your business, you will likely not be provided possible assistance available to you. The LL Roberts Group will continue to post regular updates, insights and general information on our blog, Facebook, Twitter, and LinkedIn pages. Please check back in with us periodically.