On a low information diet to preserve your sanity? Here's the scoop.
There are three new laws that have been put in place to address the Coronavirus outbreak in the US: The Coronavirus Preparedness and Response Supplemental Appropriations Act, The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Response (CARES) Act.
Please note: before taking action based on this information, please do your own research, including speaking with your CPA, financial advisor or planner, employer, loan servicer, state unemployment office, and heck, maybe even a priest or shaman. My goal is to share my best understanding and to be of service. I hope you find this helpful.
With memories of the 2008 Financial Crisis still fresh in the minds of anyone old enough to be in Congress, the US has taken bold action to try to reduce the impact of the current situation. Well, they took bold action on the third try, but this article summarizes all three laws.
On February 20th, 2020 the first of a series of U.S. stock market drops began in response to the global pandemic and concerns about the effect the disease would have on economic activity worldwide.
On March 6th, 2020, the Coronavirus Preparedness and Response Supplemental Appropriations Act became law. This law included funding for telehealth for Medicare, for vaccine development, for public health funding, and for medical supplies and preparedness. Additionally, extra funding is allocated for departments and agencies. This law included disaster loans to be provided to small businesses through the SBA. More information on the Economic Injury Disaster Loans will be provided in a subsequent post.
On March 18th, the FFCRA was passed. Its main features are to provide employees of certain employers with paid sick leave or extended family or medical leave in response to the viral outbreak. If an employer has fewer than 500 employees, the organization can receive tax credits to offset the cost of paid leave. There is an exemption for employers with fewer than 50 employees where giving paid leave to employees to take care of children would risk the continuation of the business. For more details, I recommend consulting the Department of Labor website and your employer.
On March 27th, the CARES Act was signed. This law provides for loans to corporations, small business loans, household payments, unemployment insurance, tax deferrals and deadline extension, and other funds. Most of the “goodies” we are interested in are in this act. My next posts will cover that act.
Journal questions:
When in this process do you think our leaders realized the severity of the issue? When did it start to affect you?
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