The 900-page bill has some interesting provisions for our local economy. President Donald Trump signed the historic $2.1 trillion stimulus package bill into law Friday afternoon.
Some of the key provision that should have a direct impact on our local economy are:
One-time check of $1,200 for any individual making less than $75,000 or $2,400 for a family making less than $150,000. In addition, $500 for each child 16 and younger. To be eligible, the resident must have a work-eligible Social Security number. No application is necessary, the Internal Revenue Service will utilize bank account information and recent 2019 income-tax figures on file. The Treasury indicated these payments could be made within 3 weeks of the final passage of the bill by the House of Representatives.
For any person filing unemployment benefits, the Federal government will pay $600 per month for four months in addition to the unemployment benefit received from Colorado. This now covers all self-employed people including gig workers, freelancers and independent contractors. In addition, the maximum length of time a person can collect unemployment has been increased to 39 weeks from 26 weeks
Small Business Loans
The stimulus includes $350 Billion in loans to small businesses to keep employees on their payrolls. Under the program loan money that small businesses use to cover working capital expenses like payroll, rent, interest on mortgage obligations and utilities will be forgiven. So, this is a free grant from the Federal government to provide small business liquidity. This program will be administered by the Small Business Administration.
Tax Payment Deferral
Finally, the bill allows taxpayers to defer the payment of any 2019 tax liability to July 15 from April 15.
We know this is a stressful time as we navigate through Coronavirus. These government initiatives should provide some relief along with some of the local efforts.