Understanding the CARES Act

During this global coronavirus crisis, many Americans are facing unprecedented difficulties due to business closures and economic uncertainties. To help alleviate some of the financial burdens, Congress just passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

The $2 trillion economic stimulus legislation will help many Americans, and we wanted to share some of the measures that might directly affect you or your loved ones.

Your payment from the Federal Stimulus package will depend on your income.

  • Single adults with an adjusted gross income of $75,000 or less will get $1,200.
  • Married couples with no children earning $150,000 or less will receive a total of $2,400.
  • Taxpayers filing as head of household will get $1,200 if they earn $112,500 or less.
  • For every qualifying child under the age of 16, the payment will be an additional $500. 

Above those income figures, the payment decreases on a sliding scale until it stops for single people earning $99,000 or married couples who have no children and earn $198,000.  (more info)

These individuals will be given an additional $600 a week from the federal government. This additional amount will continue for four months. The unemployment assistance period will also be extended for an additional 13 weeks, both for new filers and existing recipients. (more info)

These individuals will now also be eligible for unemployment insurance. They will also benefit from the extended assistance period and an extra $600 per week from the federal government. (more info)

$350 billion of this stimulus bill will be dedicated to supporting small businesses affected by the pandemic. This will be in the form of emergency grants, six months of relief for existing loans, and a forgivable loan program. The Small Business Administration says it’s ready to make immediate loan advances, or grants, of up to $10,000 to companies hurt by the coronavirus. It starts with an application on SBA.gov for an Economic Injury Disaster Loan.  Sole proprietors, with or without employees are eligible. (Apply Here)

In addition to these measures, the CARES Act will also assist public health institutions, food security programs, large corporations (which will have to pay the government back), and state and local governments. For more details on the CARES Act, take a look at this breakdown of the legislation by NPR.

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