Summary of State & Federal Financial Responses to COVID-19 Crisis
SUN. MARCH 29, 2020
In the interest of keeping clients, friends, and our communities informed, we have created a list of financial-related responses by State and Federal governments to the current crisis. Updates to come as new information becomes available.
- The CARES Act ($2.2 trillion)
- The largest fiscal stimulus in American history
- Individuals with up to $75,000 in adjusted gross income in 2019 will receive a onetime payment of $1,200. Married couples with AGI up to $150,000 will receive $2,400. There will be an additional $500 for each qualified child. Individuals and families with income above their respective thresholds will have relief payments reduced by $50 for every $1,000 in AGI.
- $260 billion in extended (and increased) unemployment benefits
- Forgivable loans for small businesses with up to 500 employees (up to $10M depending on payroll costs and other factors), which will be eligible for forgiveness if used to cover payroll and other primary expenses.
- Delay in the employer’s portion of Social Security payroll tax until January 1, 2021 (half of the deferred amounts due at the end of 2021, and the other half due at end of 2022)
- $454 billion in emergency lending to states and municipalities, airlines and other businesses critical to US national security
- $150 billion allocated proportionally to state and local governments to offset amounts used to respond to the pandemic
- $17 billion to cover 6 months of payments for those with SBA loans
- $10 billion in emergency funds for small businesses to cover immediate expenses
- The 10% early withdrawal penalty on distributions from retirement accounts has been eliminated for “Coronavirus-Related Distributions.”
- Suspension of required minimum distributions (RMDs) in 2020 for a wide variety of retirement accounts (more details in bill)
- Deferral of Federal student loan payments through September 30, 2020
- MORE: Details of CARES Act
- UPDATE: Small Business Guide to the CARES Act from the U.S. Senate Committee of Small Business & Entrepreneurship
- Federal Reserve Announces Extensive New Measures to Support Economy March 23, 2020
Federal Reserve Announcement
- Extension of Federal Tax Filing Deadline to July 15
First, the 2020 tax payment deadline was extended three months. Subsequently, on March 20, it was announced that the tax filing date was also extended to July 15. The maximum extended due date for 2019 taxes is January 15, 2021. It also appears that contributions to traditional IRAs, Roth IRAs, and Health Savings Accounts for 2019 may extend to July 15, 2020 (pending confirmation).
Business Insider story
- U.S. Small Business Administration Disaster Loans up to $2 Million
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Both states that are home to our offices—Florida and Connecticut—are included.
SBA COVID-19 Page
SBA South, FL Office
- Families First Coronavirus Response Act – Paid Sick Leave
The bill provides guaranteed paid leave. Businesses employing fewer than 500 employees will be covered by the bill. Under the legislation, if your company does not already provide two weeks of sick pay, employers will initially pay for the sick leave but are fully reimbursed by the federal government within three months through refundable tax credits that count against employers’ payroll tax. Companies with fewer than 50 employees will be allowed to opt out of the provisions if they would jeopardize business viability.
Business Insider story
- State of Florida Small Business Emergency Bridge Loan Program
The Small Business Emergency Bridge Loan Program has been activated in Florida to mitigate the impact of the crisis in the business community. Florida business owners with two to 100 employees can apply for short-term interest-free loans of up to $50,000.
State of FL Announcement
- CDC Official Website for COVID-19
- State of Connecticut – Coronavirus Portal
- State of Florida Health Dept – COVID-19 Portal
Grocery Delivery Services
- Publix Grocery Delivery
- Wal-Mart Grocery Delivery & Curbside Pickup
- Amazon-Whole Foods Prime Now Grocery Delivery