President Trump has just signed into law a massive new round of COVID-19 relief. What exactly does the second stimulus bill mean for you and your money?
Whether you’re currently working, how much you earn, or if you own or rent your home, all will affect how the new stimulus will impact you. So, we break it down for you.
Who gets a check
You’re eligible to receive a $600 one-time payment if your 2019 reported income was $75,000 or less. Couples who reported an adjusted gross income up to $150,000 will receive $1,200 (the income limit per couple is $112,500 for the highest earner or the head of the household). Those eligible for relief who have dependent children will also get $600 per child. So, a family of four (a couple and two children) meeting the income threshold would see $2,400.
The second stimulus bill gives weekly $300 supplemental unemployment insurance, known as Federal Pandemic Unemployment Compensation, on top of other unemployment benefits for 11 weeks, through March 14. (The CARES Act provided $600 in supplemental unemployment compensation, which expired July 31.)
If you rent
In a major bit of relief to many Americans, the new law extends the moratorium on evictions that was supposed to expire on December 31. The new expiration date is Jan. 31. Rental assistance is available for households earning less than 80% of the local median income, with priority given to households below 50% of median income or where one or more people have been unemployed for 90 or more days.
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If you own your own home
The Federal Housing Administration extended the deadline to request an initial COVID-19 forbearance to Feb. 28, 2021. The new deadline applies to single-family mortgages insured by the FHA. The bill also extends the moratorium on foreclosures and evictions through Feb. 28 for single-family FHA-insured loans.
If you run a small business
Nearly $300 billion dollars in the new stimulus package is to renew the Paycheck Protection Program, which provided “forgivable” loans to qualified small businesses. The new law also expands eligibility for PPP loans to more businesses and other industries, such as newspapers and TV stations. In addition, the package provides grants through the U.S. Small Business Administration for eligible entertainment venues that can demonstrate a 25% reduction in revenue.
The passage of the new law came much later than most Americans had hoped. However, it will provide some much-needed relief as we enter the New Year.
How do you think the second stimulus bill will impact you? Please reply using the comments below.