Congress has passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This unprecedented $2 trillion stimulus package provides relief to American workers and Small Businesses in addition to many other sectors of the American economy.
The three most notable items as it pertains to our clients are the following:
1) Expanded Unemployment Insurance (UI) for furloughed or terminated employees
2) COVID-19 Economic Injury Disaster Loan for Small Businesses
3) Tax-free Stimulus Payments to Americans
UI benefits have been expanded to provide an additional $600 weekly for up to four months for furloughed or terminated workers. For the average American, this increased amount may come very close to what they were making pre-furlough or termination.
Small Businesses can apply for a loan to help pay for the cost of payroll, group health insurance premiums, and rent/lease payments among other business related operating costs. This loan can essentially be converted to a grant if the business can prove the dollars were used for qualifying reasons. For more details and to apply, see the following: https://www.sba.gov/page/disaster-loan-applications
Finally, the CARES Act also contains a provision that provides Americans with a tax-free payment in the amount of $1,200 per individual, $2,400 per married couple, and $500 for each child (income limits do apply).
It has been a astonishing feat of our multi-political party government to develop and pass the CARES Act as quickly as it has. Our hope is that it provides our valued clients with the necessary relief to at the very least 'stay afloat' during this very difficult time for all.
Eureka Insurance Solutions will continue to monitor the COVID-19 pandemic and provide you with any additional information we believe may be helpful to you and your employees. We continue to operate business as usual to provide the efficient and accurate service you've come to expect from our Client Care Services team.