Here are some of the major components of the historic relief package:
Help for families
If your adjusted gross income is less than $75,000 for single filers and $150,000 for joint filers, then you'll get the full amount. For every $100 you earn above those limits, though, the payment drops by $5. That means that for those with no children and income levels above $99,000 for singles and $198,000 for joint filers, heads of household with an AGI between $112,500 and $146,500. no stimulus check would come. Those with incomes between those levels would receive a reduced stimulus check payment. No stimulus check would come above those amounts.
Help for small businesses
The eight weeks of assistance would be retroactive to Feb. 15, 2020 to help bring back workers who have already been laid off. Special provisions of the bill allow for loan forgiveness if small businesses (under 500 employees) retain workers or rehire workers, essentially turning the loans into grants. The money must be used for payroll and basic overhead.
The bill allocates $350 billion for the forgivable SBA loans, with a loan limit of $10 million. In addition, the legislation allocates $17 billion to a program intended to help cover six months of payments on current outstanding SBA loans. The bill also restricts use of the funds in some important ways. Companies receiving the special funds are barred from using them for stock buybacks, dividend payments or executive compensation for at least one year after the loans are no longer outstanding.
Help for corporations over 500 employees
The bill provides other tax relief to businesses by deferring tax payments, increasing deductibility for interest expenses and allowing immediate expensing of qualified property improvements, especially for the hospitality industry. The bill also restricts use of the funds in some important ways. Companies receiving the special funds are barred from using them for stock Businesses which accept the loans must also retain at least 90 percent of their employees as of March 24 until Sept. 30 “to the extent practicable.” The loans cannot last longer than five years.
Buybacks, dividend payments or executive compensation for at least one year after the loans are no longer outstanding.
One specific provision directs loans to mid-sized businesses — defined as employing between 500 and 10,000 people — and nonprofits, where no payments on the loans will be due for six months. The loans will be subject to certain conditions, so applicants should read the fine print and be sure they are fully aware of all the requirements.
Businesses which accept the loans must also retain at least 90 percent of their employees as of March 24 until Sept. 30 “to the extent practicable. ”The loans cannot last longer than five years.
Help for health care providers
Help for state and local governments
Help for the arts and non-profits
For the entire “CARES Act 2020”