vox--2020-04-03--9 questions about how to get the coronavirus stimulus funds, answered

Share All sharing options for : 9 questions about how to get the coronavirus stimulus funds , answered The early numbers from the coronavirus economic crisis are grim .
Millions of Americans are waiting for federal help in the form of direct payments , unemployment insurance benefits , or food assistance .
Last week , Congress officially passed a $ 2 trillion stimulus package , called the Coronavirus Aid , Relief and Economic Security ( CARES ) Act , aimed at helping workers , businesses , and states deal with the economic fallout from efforts to curb the coronavirus outbreak @ @ @ @ @ @ @ , there may be frustrating delays in getting assistance due to the overwhelming demand and unprecedented nature of some of these programs .
For instance , there are reports of unemployment websites crashing and jammed phone lines in New York and Florida as state agencies struggle to keep up with so many new people needing services .
The channels for obtaining this stimulus also vary .
For some aspects of it , like the $ 1,200 direct payments that will go out to most workers , the distribution of these funds will largely @ @ @ @ @ @ @ tax return in the last two years ( more on that below ) .
For others , including unemployment insurance and small business loans , people will have to apply with their individual state agencies and banks .
While the stimulus aims to infuse the economy with support for workers and businesses , there ’ s still a lot of confusion about how to get that help .
Vox has answered nine of your key questions about the stimulus bill , below .
1 ) What ’ s the best way to apply @ @ @ @ @ @ @ its own unemployment office ; if you have been laid off or furloughed from your job , you can file there — either online or by calling .
Each state has its own specific guidance , but due to high demand , some states are advising people to call on certain days or at certain times of the day depending on the alphabetical order of their last names or order of their Social Security numbers .
Many states are also recommending filing online over calling , due to busy phone lines .
Vox @ @ @ @ @ @ @ state ’ s base weekly unemployment insurance benefits and links to each state ’ s unemployment website where you can get the process started .
The new stimulus will add $ 600 per week onto that base amount for four months , until the end of July .
The delays to sign up will be frustrating .
“ Some are much better prepared than others or just have a different timetable .
So one of the things we may have to do is get more resources to the state agencies that do this @ @ @ @ @ @ @ D-CA ) told Vox on a recent press call .
Part of the reason there ’ s such a high demand is more people are now eligible for benefits .
The CARES Act opened up unemployment benefits to a range of people who weren ’ t eligible before , including gig-economy workers like drivers for Uber or Lyft , freelancers , and independent contractors .
Part-time employees who lost their jobs due to the coronavirus will also be covered , as will people who had to stop working to take care of a @ @ @ @ @ @ @ their children .
Bottom line : If the coronavirus is responsible for your layoff , furlough , or drastic reduction of your hours — or is preventing you from finding work because fewer employers are hiring — you have a good chance of getting these expanded benefits .
It ’ s worth applying as soon as possible through your state ’ s website or phone lines , even if you are unsure whether you ’ ll be covered .
2 ) How much will unemployment insurance cover ?
Laid-off or furloughed Americans who @ @ @ @ @ @ @ see an extra $ 600 per week added onto that existing state benefit through the end of July .
The average benefit in the US is about $ 385 per week , but some states are more generous than others ( for instance , the maximum weekly benefit in Arizona is $ 240 per week while the maximum weekly benefit in Washington state is $ 790 ) .
Just the increased $ 600 per week benefit alone adds up to about $ 10,000 over 4 months , said Andy Stettner , a senior @ @ @ @ @ @ @ ’ s an attempt to ease the financial burden of laid-off workers struggling to make ends meet .
“ That is a way to get a lot more money to people who really need it , ” he said .
“ It has the ability to prevent some of the real damaging parts of unemployment : reducing your savings , food security , having trouble maintaining your housing.
” Many states are cautioning they don ’ t yet know when the additional federal money will show up but are still telling newly laid-off @ @ @ @ @ @ @ the process started .
The process could be a bit more complex for contract or self-employed workers who need to file for a newly created program called Pandemic Unemployment Assistance and are waiting for states to set up these programs .
Experts said these people should still file claims as soon as possible , rather than waiting .
People who were already on unemployment and in the system before the coronavirus hit could see the changes happen the fastest .
It could take a bit longer for millions of folks who are filing @ @ @ @ @ @ @ are still processing their claims .
“ The system ’ s a little clogged up right now , ” said Michele Evermore , a senior policy analyst at the National Employment Law Project .
“ People should keep trying.
” Evermore noted that even if some workers are being told they ’ re not eligible this week , that could change in the coming weeks as states start receiving the federal money .
For more information , check out this guide on how to receive unemployment benefits .
3 ) Who will receive @ @ @ @ @ @ @ payments will be distributed based on the adjusted gross income that ’ s reported on an individual ’ s or couple ’ s 2018 and 2019 tax returns , broken down as follows : • Most adults making less than an adjusted gross income of $ 75,000 annually will receive a $ 1,200 one-time payment .
Payments will go out to individuals whose income is as much as $ 99,000 , but those bringing in more than $ 75,000 won ’ t receive the full amount .
• Married couples without children will @ @ @ @ @ @ @ their joint income is less than $ 150,000 annually .
Payments will go out to couples whose income is as much as $ 198,000 , but those bringing in more than $ 150,000 won ’ t receive the full amount .
• Households with children will also receive $ 500 each for each child if the parent ’ s income qualifies for these payments .
• Taxpayers who have filed as “ head of household ” in the past will receive the full $ 1,200 if their income is less than $ 112,500 @ @ @ @ @ @ @ to keep in mind : • Adults who are claimed as dependents by other adults , including many college students , will not be eligible for a direct payment , nor will people in households with members who are unauthorized immigrants .
• Adults , except for those receiving Social Security benefits and other specific support , will have needed to file a tax return in 2018 or 2019 in order to obtain these payments .
If you have not filed a tax return for either of those years , the IRS will @ @ @ @ @ @ @ file a return for this year .
Completing this return does not put people on the hook for any taxes , but it is required to obtain the direct payment .
• The amounts of the direct payments for individuals making more than $ 75,000 and couples making more than $ 150,000 will decrease $ 5 based on every $ 100 an individual makes over $ 75,000 .
An individual that has an income of $ 85,000 , for example , would receive a $ 700 payment .
For more information , check @ @ @ @ @ @ @ Dylan Matthews .
The answer to this question depends on if you have filed taxes in 2018 or 2019 .
• If you have filed taxes in either of those years — and the IRS has your bank account information — the direct payments are expected to be shared via direct deposit within the next three weeks , so roughly by April 24 .
According to a Washington Post report , the IRS plans to start initiating these deposits beginning next week .
• If you have filed taxes but the IRS does @ @ @ @ @ @ @ the Treasury Department is planning to create an online portal where people can share their bank account information so the money can also be direct deposited .
Depending on how quickly this information is processed , you ’ ll also likely receive payments starting in the next three weeks , though there may be some delays .
The IRS is also able to mail checks directly to the address listed on the tax return , but mailed checks are expected to take up to 20 weeks , or five months .
The Post @ @ @ @ @ @ @ mail may not get up them until as late as September .
• If you have not filed taxes in either of these years but you receive Social Security benefits , you do not need to file an additional tax return .
The IRS will use the information in your existing files in order to send the payment .
• If you have not filed taxes in either of these years and do not receive Social Security benefits , you will need to file a “ simple tax return ” in order to @ @ @ @ @ @ @ will require less information than a standard return and will focus on an abridged set of questions including name , Social Security number , number of dependents , and deposit information .
The IRS is expected to provide more information about how to complete this return on its website .
It ’ s not yet clear at this point how long it will take the agency to process these returns and distribute the payments corresponding to them .
5 ) How can small businesses apply for loans ?
There are two main loan @ @ @ @ @ @ @ businesses and nonprofits : the Economic Injury Disaster Loan Program and the Paycheck Protection Program .
The two offer slightly different options aimed at helping both small businesses and private nonprofits deal with temporary closures and losses that are a result of the coronavirus outbreak .
• Economic Injury Disaster Loan Program ( EIDL ) : The EIDL includes a $ 10,000 emergency grant that businesses and nonprofits can apply for , which won ’ t have to be repaid at all .
It also includes low-interest loans that will have to be @ @ @ @ @ @ @ in order to cover operating expenses while large sectors of the economy are locked down .
These loans cap out at $ 2 million per business or nonprofit .
Applications for the EIDL are handled directly by the Small Business Administration , so organizations can apply directly on the agency ’ s website .
The application is for the broader loan , but businesses can indicate that they want the $ 10,000 grant as part of it .
Any business that feels it has incurred damages since a public health emergency was declared @ @ @ @ @ @ @ eligible to apply .
• Paycheck Protection Program ( PPP ) : Loans from the Paycheck Protection Program can help businesses and nonprofits cover up to eight weeks of payroll costs and some other expenses .
They are 100 percent forgivable if a business does not lay off any employees or rehires by June 30 , 2020 , employees that have already been laid off .
Businesses are able to apply for 2.5 times their monthly payroll costs , up to $ 10 million , and they can use any funds they receive @ @ @ @ @ @ @ and utilities .
Businesses and nonprofits can apply for the PPP directly with their banks or lenders .
The Treasury Department has released an example of what the application includes , and it will officially go live for businesses and nonprofits on Friday , April 3 .
It will go live for self-employed workers and sole proprietorships on Friday , April 10 .
It ’ s worth noting that businesses and nonprofits can apply to both loan programs and ultimately receive both if they do not use the money for the same purpose @ @ @ @ @ @ @ an EIDL loan to pay April payroll and then use PPP to do the same , for example . )
Organizations could also refinance an EIDL loan they ’ ve received since January 31 , 2020 , into a PPP loan .
For both , businesses and nonprofits are encouraged to apply as quickly as possible given the expectation that there will be high demand for the programs .
Since both also have a limited amount of funding , applying sooner is also important in case their allocated funding is fully used .
@ @ @ @ @ @ @ , experts tell Vox that the $ 10,000 grant it provides could be the fastest way for businesses and nonprofits trying to get money more quickly .
Once the PPP is fully established , Treasury Secretary Steven Mnuchin has said that he expects loans will be turned around on the same day as the application .
Since PPP is a new program , however , it could take a few days or weeks before it ’ s fully functional .
6 ) How will student loans be treated ?
How will college students @ @ @ @ @ @ @ automatically suspending direct government student loan payments from mid-March until September 30 , 2020 , which will impact the vast majority of student loan borrowers .
Loans that are eligible for being suspended include direct loans from the federal government received anytime in the last 10 years .
Interest payments on these loans will also be suspended automatically .
Students don ’ t need to take any action for this to go into effect , but they should check their individual loan provider for more information .
Loans that are not eligible to @ @ @ @ @ @ @ like Sallie Mae or Wells Fargo , Federal Family Educational Loans ( FFEL ) not owned by the US Department of Educations , Perkins loans , or loans from states .
However , borrowers could consolidate their Perkins loans and FFEL loans into a direct consolidation loan in order to qualify for relief or a zero percent interest rate .
If you ’ re not sure what type of loan you have , you should contact your loan servicer .
If you are still employed and have a stable income right now , @ @ @ @ @ @ @ your loans , which will go to paying off your accumulated interest and principal .
But not every federal loan qualifies ; this may only be a good idea if you ’ re on a standard 10-year loan , not on income-based repayment .
Wage garnishing for those who were previously behind on their federal student loan payments will also be suspended for six months .
Recent college graduates or those who are about to enter the workforce at this time are at a disadvantage when it comes to applying for unemployment benefits @ @ @ @ @ @ @ There ’ s a provision in a bill from House Democrats that would allow recent college graduates to qualify for something called a “ job seekers allowance , ” which is about half of the benefits available for the rest of workers .
But that didn ’ t make it into the final CARES Act , and unless Congress includes this in a future relief bill , recent college graduates are in a tough spot to get federal unemployment assistance .
7 ) What if I can ’ t pay my rent or @ @ @ @ @ @ @ no national rent or mortgage freeze , but certain states and cities are passing laws or putting in temporary measures to keep people in their homes .
So far , 34 states and Washington , DC , have passed measures to temporarily bar evictions , according to USA Today : Maine , New Hampshire , New York , Massachusetts , Pennsylvania , New Jersey , Connecticut , Rhode Island , Virginia , Maryland , Delaware , Kentucky , West Virginia , Tennessee , North Carolina , South Carolina , Louisiana , Oklahoma , @ @ @ @ @ @ @ , North Dakota , Minnesota , Illinois , Michigan , Indiana , Iowa , Arizona , Nevada , California , Oregon , Washington , and Hawaii .
Some municipalities want to go further .
The Boston City Council recently passed a nonbinding resolution calling for an end to rent and mortgage collection during the coronavirus outbreak , but it ’ s not legally binding unless Boston Mayor Marty Walsh or Massachusetts Gov .
Charlie Baker agrees to it .
Expanded unemployment insurance will theoretically help people pay their rent , but that program @ @ @ @ @ @ @ still don ’ t know how long the coronavirus will keep all of us social distancing .
Vox recently asked House Speaker Nancy Pelosi whether Congress should pass a rent moratorium .
While Pelosi didn ’ t endorse that idea specifically , she said future bills need to contain stronger provision for renters .
“ It ’ s a very big challenge , and it ’ s frightening to people because they ’ re shelter [ ing ] in place and then they ’ re evicted , ” Pelosi told Vox .
“ @ @ @ @ @ @ @ that ?
There are some provisions in the CARES Act , we certainly must do more.
” 8 ) Where can I get help if I need assistance for food ?
Recent bills have added more funding to the SNAP program ( also known as food stamps ) as well as WIC , a nutrition program focused on providing food for women and children .
Additionally , the Department of Agriculture has relaxed requirements for some of the aid it oversees , including coverage of school lunches for children who are now staying @ @ @ @ @ @ @ The CARES Act contains $ 15 billion for food stamps , $ 450 million for food banks , and $ 8.8 billion for childhood nutrition programs .
These funds are in addition to money passed in the Families First Act — the second coronavirus relief bill Congress took up .
That contained $ 500 million for WIC and $ 400 million for the Emergency Food Assistance Program , which helps local food banks procure supplies .
Pelosi has made it clear she plans to ask for more money in future bills .
Applications @ @ @ @ @ @ @ individually by different states ; links to each state ’ s website can be found here for SNAP and here for WIC .
Depending on the state , people are able to apply via phone , website , or in person .
Recipients for both programs need to meet eligibility criteria based on income and resources limits ( like household assets , etc ) .
Importantly , you can receive SNAP if you are don ’ t have a fixed address or a place to stay .
Here ’ s more information on @ @ @ @ @ @ @ .
SNAP applications are typically processed within 30 days , though applications can be expedited so benefits start coming in as quickly as within seven days .
Additionally , existing SNAP recipients could see more money directly deposited into their EBT accounts if they aren ’ t already receiving the maximum amount that each state allocates for their family size .
The additional funding in recent stimulus bills is being used to make sure that states could distribute the maximum amount of money every family can receive in both March and April .
@ @ @ @ @ @ @ receiving reduced or free lunches in school will also receive additional funds to cover these costs .
Those that are already on SNAP will see this money added automatically , while those who are not on SNAP will have to fill out an application .
This program is being implemented state by state , so applications will be handled directly on state websites ; more information is expected as it ’ s implemented this month .
9 ) Are there other ways to help if I ’ m in a position to do @ @ @ @ @ @ @ help small businesses struggling with coronavirus closures and workers who are dealing with layoffs , there are several ways you can contribute .
• Buy from small businesses and tip workers well : While businesses have been forced to temporarily shutter during the coronavirus outbreak , many restaurants and bars remain open and are relying on takeout orders for their current income .
Purchasing either takeout orders or gift cards from these businesses , and tipping delivery people generously , can be one way to help .
Additionally , if there are other @ @ @ @ @ @ @ basis like hair stylists or child care workers who are currently unable to do their jobs , prepay for future sessions now or keep paying the regular amount you would if there were no coronavirus crisis .
• Contribute to direct funding campaigns : Some small businesses and workers have started crowdfunding campaigns explicitly aimed at raising money to combat the effects of layoffs and lost income .
Giving to these efforts can be one way to contribute quickly and directly to individual people or businesses .
Journalist Yashar Ali , for example @ @ @ @ @ @ @ aimed at sending money to hourly workers who ’ ve been laid off or negatively affected by business closures related to the coronavirus .
Many businesses have also used their social media platforms to let their customers know about other funding campaigns they may be doing as well .
• Donate to organizations and nonprofits focused on providing relief : There are many organizations and nonprofits dedicated to getting money and food quickly to people who need it , and donating to these groups is another way to contribute .
GiveDirectly is among @ @ @ @ @ @ @ and is working on distributing $ 1,000 payments to households that are currently on SNAP .
Other organizations working to address the effects of the coronavirus include the National Domestic Workers Alliance , which is raising funds to give out $ 400 in emergency assistance to home care workers , nannies , and house cleaners ; or No Kid Hungry , which is focused on providing food for children who are currently sheltering in place .
• Participate in a mutual aid program : In communities across the country , people are launching @ @ @ @ @ @ @ residents of an apartment building or in a neighborhood volunteer to help with tasks for those who may be unable to do so themselves .
People have volunteered to do chores like pick up medication and groceries for those who may find such activities more challenging .
Offering financial help , too , or donating goods to neighbors who need them , could be part of these mutual aid efforts .

The early numbers from the coronavirus economic crisis are grim. Millions of Americans are waiting for federal help in the form of direct payments, unemployment insurance benefits, or food assistance.
In March, Congress officially passed a $2 trillion stimulus package, called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, aimed at helping workers, businesses, and states deal with the economic fallout from efforts to curb the coronavirus outbreak.
Though relief is on the way, there may be frustrating delays in getting assistance due to the overwhelming demand and unprecedented nature of some of these programs. For instance, there are reports of unemployment websites crashing and jammed phone lines in New York and Florida as state agencies struggle to keep up with so many new people needing services.
The channels for obtaining this stimulus also vary. For some aspects of it, like the $1,200 direct payments that will go out to most workers, the distribution of these funds will largely be automatic if individuals have filed a tax return in the past two years (more on that below). For others, including unemployment insurance and small-business loans, people will have to apply with their individual state agencies and banks.
While the stimulus aims to infuse the economy with support for workers and businesses, there’s still a lot of confusion about how to get that help. Vox has answered nine of your key questions about the stimulus bill below.
1) What’s the best way to apply for unemployment insurance?
Each state has its own unemployment office; if you have been laid off or furloughed from your job, you can file there — either online or by calling.
Each state has its own guidance, but due to high demand, some states are advising people to call on certain days or at certain times depending on the alphabetical order of their last names or order of their Social Security numbers. Many states are also recommending filing online over calling, due to busy phone lines.
Vox has put together a chart of each state’s base weekly unemployment insurance benefits and links to each state’s unemployment website where you can get the process started. The new stimulus will add $600 per week to that base amount for four months, until the end of July.
The delays to sign up will be frustrating.
“Some are much better prepared than others or just have a different timetable. So one of the things we may have to do is get more resources to the state agencies that do this,” House Speaker Nancy Pelosi told Vox on a recent press call.
Part of the reason there’s such a high demand is more people are now eligible for benefits. The CARES Act opened up unemployment benefits to a range of people who weren’t eligible before, including gig economy workers like drivers for Uber or Lyft, freelancers, and independent contractors. Part-time employees who lost their jobs due to the coronavirus will also be covered, as will people who had to stop working to take care of a sick member of their family or homeschool their children.
Bottom line: If the coronavirus is responsible for your layoff, furlough, or drastic reduction of your hours — or is preventing you from finding work because fewer employers are hiring — you have a good chance of getting these expanded benefits. It’s worth applying as soon as possible through your state’s website or phone lines, even if you are unsure whether you’ll be covered.
2) How much will unemployment insurance cover?
Laid-off or furloughed Americans who file for unemployment through their states will see an extra $600 per week added to that existing state benefit through the end of July. The average benefit in the US is about $385 per week, but some states are more generous than others (for instance, the maximum weekly benefit in Arizona is $240 per week while the maximum weekly benefit in Washington state is $790).
Just the increased $600 per week benefit alone adds up to about $10,000 over four months, said Andy Stettner, a senior fellow at the Century Foundation. It’s an attempt to ease the financial burden of laid-off workers struggling to make ends meet.
“That is a way to get a lot more money to people who really need it,” he said. “It has the ability to prevent some of the real damaging parts of unemployment: reducing your savings, food security, having trouble maintaining your housing.”
Many states are cautioning they don’t yet know when the additional federal money will show up but are still telling newly laid-off people to file a claim and get the process started. The process could be a bit more complex for contract or self-employed workers who need to file for a newly created program called Pandemic Unemployment Assistance and are waiting for states to set up these programs. Experts said these people should still file claims as soon as possible, rather than waiting.
People who were already on unemployment and in the system before the coronavirus hit could see the changes happen the fastest. It could take a bit longer for millions of folks who are filing for unemployment all at once because states are still processing their claims.
“The system’s a little clogged up right now,” said Michele Evermore, a senior policy analyst at the National Employment Law Project. “People should keep trying.” Evermore noted that even if some workers are being told they’re not eligible this week, that could change in the coming weeks as states start receiving the federal money.
For more information, check out this guide on how to receive unemployment benefits.
3) Who will receive those $1,200 direct payments?
Direct payments will be distributed based on the adjusted gross income that’s reported on an individual’s or couple’s 2018 and 2019 tax returns, broken down as follows:
Most adults that make less than an adjusted gross income of $75,000 annually, will receive a $1,200 one-time payment. Payments will go out to individuals whose income is as much as $99,000, but those bringing in more than $75,000 won’t receive the full amount.
Married couples without children will receive a total of $2,400 if their joint income is less than $150,000 annually. Payments will go out to couples whose income is as much as $198,000, but those bringing in more than $150,000 won’t receive the full amount.
Households with children will also receive $500 each for each child if the parent’s income qualifies for these payments and if the child is under the age of 17.
Taxpayers who have filed as “head of household” in the past will receive the full $1,200 if their income is less than $112,500. Payments will go out to individuals whose income is as much as $136,500, but those bringing in more than $112,500 won’t receive the full amount.
There are also some key nuances to keep in mind:
Adults who are claimed as dependents by other adults, including many college students, will not be eligible for a direct payment.
Adults are required to have a Social Security number to be eligible for a direct payment.
People in households that include unauthorized immigrants could also be cut out of the program, unless one of the partners in the household has served in the military in the past year.
Adults, except for those receiving Social Security benefits and Railroad Retirement and Survivor benefits, will have needed to file a tax return in 2018 or 2019 in order to obtain these payments.
If you have not filed a tax return for either of those years because your gross income is below the $12,200 threshold or for other reasons that mean you aren’t required to file taxes, the IRS now provides an online form for people to submit their information so they can receive these payments. That form can be accessed, here.
Information required for this form includes Social Security number, name, address, and details about dependents. Completing this form does not put people on the hook for any taxes, but it is required to obtain the direct payment, and including bank account deposit information can expedite the processing of that payment.
The amounts of the direct payments for individuals making more than $75,000 and couples making more than $150,000 will decrease $5 based on every $100 an individual makes over $75,000. An individual with an income of $85,000, for example, would receive a $700 payment.
For more information, check out this explainer from Vox’s Dylan Matthews.
4) When will people receive direct payments?
The answer to this question depends on if you have filed taxes in 2018 or 2019.
If you have filed taxes in either of those years — and the IRS has your bank account information — the direct payments are expected to be shared via direct deposit within the next few weeks. The IRS has begun depositing these payments as of this last week.
If you have filed taxes but the IRS does not have your bank account information, the Treasury Department has created an online portal where people can share their bank account information so the money can also be directly deposited.
The “Get My Payment” tool is now live, though it’s faced some glitches. In case you receive an error while trying to use this tool, check back in the coming days: the IRS has said it’s still updating the information for the portal and working on fixing problems that have come up.
The timing of payments will likely depend on how quickly this direct deposit information is processed. People will also be able to check the status of their payment via this tool.
The IRS is also able to mail checks directly to the address listed on the tax return, but mailed checks are expected to take up to 20 weeks, or five months. The Post indicates that individuals receiving checks by mail may not get up them until as late as September. According to USA Today, the earliest round of checks will be sent either later this month or in early May.
If you have not filed taxes in either of these years but you receive Social Security benefits, you do not need to file an additional tax return. The IRS will use the information in your existing files in order to send the payment. The agency intends to begin sending payments to Social Security beneficiaries who have direct deposit set up beginning in mid-April.
5) How can small businesses apply for loans?
There are two main loan programs that include stimulus funds for small businesses and nonprofits: the Economic Injury Disaster Loan Program and the Paycheck Protection Program.
The two offer slightly different options aimed at helping both small businesses and private nonprofits deal with temporary closures and losses that are a result of the coronavirus outbreak.
Here’s what both include:
Economic Injury Disaster Loan Program (EIDL): The EIDL includes a $10,000 emergency grant that businesses and nonprofits can apply for, which won’t have to be repaid at all. It also includes low-interest loans that will have to be repaid, which organizations can apply for in order to cover operating expenses while large sectors of the economy are locked down. These loans cap out at $2 million per business or nonprofit.
Applications for the EIDL are handled directly by the Small Business Administration, so organizations can apply directly on the agency’s website. The application is for the broader loan, but businesses can indicate that they want the $10,000 grant as part of it. Any business that feels it has incurred damages since a public health emergency was declared on January 31, 2020, is eligible to apply.
Paycheck Protection Program (PPP): Loans from the Paycheck Protection Program can help businesses and nonprofits cover up to eight weeks of payroll costs and some other expenses. They are 100 percent forgivable if a business does not lay off any employees or rehires by June 30, 2020, employees that have already been laid off.
Businesses are able to apply for 2.5 times their monthly payroll costs, up to $10 million, and they can use any funds they receive to cover worker salaries, rent, and utilities. Businesses and nonprofits can apply for the PPP directly with their banks or lenders.
It’s worth noting that businesses and nonprofits can apply to both loan programs and ultimately receive both if they do not use the money for the same purpose. (A business could not use an EIDL loan to pay April payroll and then use PPP to do the same, for example.) Organizations could also refinance an EIDL loan they’ve received since January 31, 2020, into a PPP loan.
For both, businesses and nonprofits are encouraged to apply as quickly as possible given the expectation that there will be high demand for the programs. Since both also have a limited amount of funding, applying sooner is also important in case their allocated funding is fully used.
Because the EIDL is already set up, experts tell Vox that the $10,000 grant it provides could be the fastest way for businesses and nonprofits trying to get money more quickly. Once the PPP is fully established, Treasury Secretary Steven Mnuchin has said that he expects loans will be turned around on the same day as the application. Since PPP is a new program, however, it could take a few days or weeks before it’s fully functional.
6) How will student loans be treated? How will college students be treated?
The federal government is automatically suspending direct government student loan payments from mid-March until September 30, 2020, which will impact the vast majority of student loan borrowers.
Loans that are eligible for suspension include direct loans from the federal government received anytime in the past 10 years. Interest payments on these loans will also be suspended automatically. Students don’t need to take any action for this to go into effect, but they should check their individual loan provider for more information.
Loans that are not eligible to be suspended include those from private lenders like Sallie Mae or Wells Fargo, Federal Family Educational Loans (FFEL) not owned by the US Department of Education, Perkins loans, or loans from states. However, borrowers could consolidate their Perkins loans and FFEL loans into a direct consolidation loan in order to qualify for relief or a zero percent interest rate. If you’re not sure what type of loan you have, you should contact your loan servicer.
If you are still employed and have a stable income right now, you can still keep making payments on your loans, which will go to paying off your accumulated interest and principal. But not every federal loan qualifies; this may only be a good idea if you’re on a standard 10-year loan, not on income-based repayment.
Wage garnishing for those who were previously behind on their federal student loan payments will also be suspended for six months.
Recent college graduates or those who are about to enter the workforce at this time are at a disadvantage when it comes to applying for unemployment benefits because of their limited work history.
There’s a provision in a bill from House Democrats that would allow recent college graduates to qualify for something called a “job seekers allowance,” which is about half of the benefits available for the rest of workers. But that didn’t make it into the final CARES Act, and unless Congress includes this in a future relief bill, recent college graduates are in a tough spot to get federal unemployment assistance.
7) What if I can’t pay my rent or mortgage?
So far, there is no national rent or mortgage freeze, but certain states and cities are passing laws or putting in temporary measures to keep people in their homes.
So far, 34 states and Washington, DC, have passed measures to temporarily bar evictions, according to USA Today: Maine, New Hampshire, New York, Massachusetts, Pennsylvania, New Jersey, Connecticut, Rhode Island, Virginia, Maryland, Delaware, Kentucky, West Virginia, Tennessee, North Carolina, South Carolina, Louisiana, Oklahoma, Texas, Nebraska, Kansas, Wisconsin, North Dakota, Minnesota, Illinois, Michigan, Indiana, Iowa, Arizona, Nevada, California, Oregon, Washington, and Hawaii.
Some municipalities want to go further. The Boston City Council recently passed a nonbinding resolution calling for an end to rent and mortgage collection during the coronavirus outbreak, but it’s not legally binding unless Boston Mayor Marty Walsh or Massachusetts Gov. Charlie Baker agrees to it.
Expanded unemployment insurance will theoretically help people pay their rent, but that program only runs until July — and we still don’t know how long the coronavirus will keep all of us social distancing. Vox recently asked Pelosi whether Congress should pass a rent moratorium. While Pelosi didn’t endorse that idea specifically, she said future bills need to contain stronger provision for renters.
“It’s a very big challenge, and it’s frightening to people because they’re shelter[ing] in place and then they’re evicted,” Pelosi told Vox. “What? How do we deal with that? There are some provisions in the CARES Act, we certainly must do more.”
8) Where can I get help if I need food assistance?
Recent bills have added more funding to the SNAP program (also known as food stamps) as well as WIC, a nutrition program focused on providing food for women and children. Additionally, the Department of Agriculture has relaxed requirements for some of the aid it oversees, including coverage of school lunches for children who are now staying at home because of the coronavirus.
The CARES Act contains $15 billion for food stamps, $450 million for food banks, and $8.8 billion for childhood nutrition programs. These funds are in addition to money passed in the Families First Act — the second coronavirus relief bill Congress took up. That contained $500 million for WIC and $400 million for the Emergency Food Assistance Program, which helps local food banks procure supplies. Pelosi has made it clear she plans to ask for more money in future bills.
Applications for both SNAP and WIC are handled individually by different states; links to each state’s website can be found here for SNAP and here for WIC. Depending on the state, people are able to apply via phone, online, or in person. Recipients for both programs need to meet eligibility criteria based on income and resources limits (like household assets, etc.). Importantly, you can receive SNAP if you are don’t have a fixed address or a place to stay.
Here’s more information on SNAP eligibility requirements and WIC eligibility requirements.
SNAP applications are typically processed within 30 days, though applications can be expedited so benefits start coming in as quickly as within seven days.
Additionally, existing SNAP recipients could see more money directly deposited into their EBT accounts if they aren’t already receiving the maximum amount that each state allocates for their family size. The additional funding in recent stimulus bills is being used to make sure that states could distribute the maximum amount of money every family can receive in both March and April.
Families that have students who were previously receiving reduced or free lunches in school will also receive additional funds to cover these costs. Those that are already on SNAP will see this money added automatically, while those who are not on SNAP will have to fill out an application. This program is being implemented state by state, so applications will be handled directly on state websites; more information is expected as it’s implemented this month.
9) Are there other ways to help if I’m in a position to do so?
If you are able to help small businesses struggling with coronavirus closures and workers who are dealing with layoffs, there are several ways you can contribute.
Buy from small businesses and tip workers well: While businesses have been forced to temporarily shutter during the coronavirus outbreak, many restaurants and bars remain open and are relying on takeout orders for their current income. Purchasing either takeout orders or gift cards from these businesses, and tipping delivery people generously, can be one way to help.
Additionally, if there are other businesses you work with on a regular basis like hairstylists or child care workers who are currently unable to do their jobs, prepay for future sessions now or keep paying the regular amount you would if there were no coronavirus crisis.
Contribute to direct funding campaigns: Some small businesses and workers have started crowdfunding campaigns explicitly aimed at raising money to combat the effects of layoffs and lost income. Giving to these efforts can be one way to contribute quickly and directly to individual people or businesses.
Journalist Yashar Ali, for example, has a crowdfunding campaign he started to send money to hourly workers who’ve been laid off or negatively affected by business closures related to the coronavirus. Many businesses have also used their social media platforms to let their customers know about other funding campaigns they may be doing as well.
Donate to organizations and nonprofits focused on providing relief: There are many organizations and nonprofits dedicated to getting money and food quickly to people who need it, and donating to these groups is another way to contribute. GiveDirectly is among those focused on responding to the crisis and is working on distributing $1,000 payments to households that are currently on SNAP.
Other organizations working to address the effects of the coronavirus include the National Domestic Workers Alliance, which is raising funds to give out $400 in emergency assistance to home care workers, nannies, and house cleaners; or No Kid Hungry, which is focused on providing food for children who are currently sheltering in place.
Participate in a mutual aid program: In communities across the country, people are launching “mutual aid” efforts in which residents of an apartment building or in a neighborhood volunteer to help with tasks for those who may be unable to do so themselves. People have volunteered to do chores like pick up medication and groceries for those who may find such activities more challenging. Offering financial help, too, or donating goods to neighbors who need them, could be part of these mutual aid efforts.
lease consider making a contribution to Vox today.


vox--2020-04-03--How small businesses can get money from the stimulus package

Share All sharing options for : How small businesses can get money from the stimulus package There ’ s a significant amount of money — $ 377 billion — allocated to support small businesses in Congress ’ s latest coronavirus stimulus package .
But figuring out exactly how to access it can be somewhat confusing .
Vox is here to help .
The funds from the CARES Act , which President Donald Trump signed into law on March 27 , are divided among three small-business programs that offer forgivable grants and loans , as well as loan deferral .
( @ @ @ @ @ @ @ to nonprofits that meet the necessary size requirements . )
In this guide , we ’ ll focus on the two that allow businesses to apply for new loans , though the full menu of relief options is available on the SBA ’ s website .
The first is the Paycheck Protection Program ( PPP ) , which enables organizations to obtain up to $ 10 million in loans that are 100 percent forgivable if they do not lay off any employees or if they rehire employees they ’ ve already laid off @ @ @ @ @ @ @ Disaster Loan Program ( EIDL ) , which includes a $ 10,000 grant that businesses can apply for and which they do not need to pay back .
The rest of the EIDL loan , which caps out at $ 2 million , is not forgivable but can be more flexible than PPP in the types of expenses it covers .
Experts tell Vox that it ’ s possible for businesses and nonprofits to apply to both — and that they should do so fast .
“ We encourage you to apply as @ @ @ @ @ @ @ a funding cap , ” reads a statement from the Treasury Department .
Since both programs also have a limited amount of funding , applying sooner is also important in case their allocated funding is fully used .
Currently , the EIDL application is already live and accessible here .
The PPP application is scheduled to go live on April 3 , and earlier this the week the Treasury Department released an example of what it would look like .
This guide is intended to give a broad overview of both programs , @ @ @ @ @ @ @ reach out directly to the Small Business Administration via a new 24/7 phone help line : 1-800-659-2295 .
Businesses are also encouraged to connect with advisers at small-business development centers , women ’ s business centers , and SCORE , who are available to provide free guidance .
( Contact information for the closest regional advisers can be found on their websites . )
Let ’ s start with what ’ s included in the bill The Paycheck Protection Program and the Economic Injury Disaster Loan Program are the two main options small @ @ @ @ @ @ @ support during the coronavirus outbreak .
( It ’ s worth noting that organizations can receive both loans and that an EIDL loan can also be refinanced into a PPP loan . )
• The Paycheck Protection Program ( PPP ) : The bulk of the small business stimulus funds in the CARES Act , roughly $ 349 billion , is dedicated to establishing the Paycheck Protection Program , which is intended to guarantee businesses the loans they need to cover eight weeks of payroll , along with some utility and rent costs @ @ @ @ @ @ @ or rehire them by June 30 after they ’ ve been laid off , these loans could be fully forgiven .
Businesses are able to request 2.5 times their average monthly payroll costs for this loan .
Organizations can apply for PPP by calling their banks and other lenders directly .
• Economic Injury Disaster Loan Program and Advance ( EIDL ) : There ’ s $ 10 billion in the stimulus bill that is allocated for the EIDL , a program that has existed for some time .
This money will go @ @ @ @ @ @ @ a grant program that would provide a $ 10,000 emergency “ advance ” that businesses won ’ t have to pay back , and it funds low-interest loans organizations can use to cover operating expenses , though they will have to repay these funds .
The loan amount that organizations can request will be based on the amount of “ economic injury ” that they have sustained because of the coronavirus .
Businesses and nonprofits can apply for the EIDL directly on the Small Business Administration website .
When do applications open and @ @ @ @ @ @ @ EIDL application is already up and running , while the PPP will go live on Friday , April 3 , for small businesses and nonprofits .
The PPP application will go live on Friday , April 10 , for independent contractors and self-employed individuals .
There is more uncertainty right now around the PPP because it ’ s an entirely new program the SBA is trying to get off the ground .
Treasury Secretary Steven Mnuchin has said that the goal is same-day approval for loans , but it ’ s not yet @ @ @ @ @ @ @ be fully functional , and banks have raised concerns about the rushed rollout .
Still , experts urge small businesses to begin reaching out to their banks — which will be in charge of approving PPP loans — so that institutions are aware of the interest and can alert organizations promptly once the program is officially underway .
The EIDL Program , meanwhile , is already actively fielding applications , and the $ 10,000 grants that are part of it are likely the fastest way for businesses to obtain relief at this point @ @ @ @ @ @ @ these grants , it will be able to receive them within three days of approval , according to the SBA .
Any business or nonprofit that applies for an EIDL loan can indicate that it is interested in this emergency advance , and organizations can still receive it even if they aren ’ t approved for the full loan .
“ Businesses applying for EIDL loans are eligible for an emergency advance of up to $ 10,000 that does not need to be repaid , ” Michael Chasalow , the founder of the @ @ @ @ @ @ @ .
“ It seems that a business in need of immediate cash should pursue this option.
” Below is what we know so far about how to apply to both programs .
We ’ ll keep updating this guide as more information is released .
The first step for companies and nonprofits interested in these programs is to figure out whether they ’ re eligible for these specific loans , which are predominantly focused on helping organizations that have suffered hardships because of the coronavirus outbreak .
In addition to meeting the size @ @ @ @ @ @ @ , businesses and nonprofits need to show that they ’ ve been negatively affected by the coronavirus .
Businesses and nonprofits eligible for the PPP program are required to have been operational on February 15 , 2020 , and to demonstrate that the economic fallout from the coronavirus has hurt them .
• Any business with 500 or fewer employees • Any 501 ( c ) 3 nonprofit that has 500 or fewer employees , or otherwise meets the SBA ’ s size requirements • Restaurant , hotel , or other business that @ @ @ @ @ @ @ Food Services ” that has 500 or fewer employees at each of its independent locations Businesses and nonprofits eligible for the EIDL program are required to have been operational on January 31 , 2020 , and to have experienced negative economic effects because of the coronavirus crisis .
• Any business with 500 or fewer employees • Any private nonprofit that has 500 or fewer employees — or otherwise meets the SBA ’ s size requirements Next , figure out which loan makes the most sense right now Organizations will have to evaluate @ @ @ @ @ @ @ for their immediate needs , though multiple experts told Vox there ’ s no harm in applying to both of them .
In fact , this move is encouraged to make sure that businesses have more options — as long as they don ’ t use the two loans for the same purpose .
( An EIDL loan could not be used to pay employees for the month of March if a PPP loan was already being used to do that , for example . )
The focus of the two programs , @ @ @ @ @ @ @ PPP , the loans are predominantly aimed at covering payroll costs ( up to $ 100,000 per employee ) but can be used to address other expenses as well , including utilities , rent , and interest on mortgage payments .
Loans used to cover these costs are 100 percent forgivable at the end of the eight-week period during which they are used , but if the money is used for other expenses , that portion of the funds will not be forgiven .
Under EIDL , the grants and loans can be @ @ @ @ @ @ @ , including rent and mortgage payments , salaries , workers ’ paid leave , and the business ’ s operational needs .
Because small business owners don ’ t have to worry about as many rules around loan forgiveness , there ’ s slightly more flexibility regarding these funds .
If a business or nonprofit is looking for a more rapid influx of cash , the EIDL route — which includes quick approval of the $ 10,000 emergency grant — could be the best first step .
“ Everyone should be applying for @ @ @ @ @ @ @ where there ’ s a potential for $ 10,000 in grants , as soon as the provision gets authorized , ” says Cynthia Wikstrom , the campaigns director for the Main Street Alliance , an organization focused on advocating for small-business interests .
The big difference between the two programs is that the PPP loans are entirely forgivable if companies meet a specific set of requirements , while EIDL loans ( except for the $ 10,000 grant ) are not .
The cap for PPP loans is also higher at $ 10 million @ @ @ @ @ @ @ cap out at $ 2 million .
There are two separate processes for applying for these loans Applications for these loans are expected to go through two different channels .
• To apply for the EIDL loan and the $ 10,000 grant : Small-business owners and nonprofits can apply directly with the Small Business Administration at this website : https : //covid19relief.sba.gov/ # / .
When small businesses submit their applications for the EIDL loan , they can indicate they are interested in the emergency grant at the same time .
• To @ @ @ @ @ @ @ can call their current bank or lender directly .
At this point , banks are just beginning to accept applications , and calling now to indicate interest in the loan can help businesses get in the queue quickly .
The Treasury Department has shared information about what the application will look like .
All 1,800 banks that currently participate in the SBA ’ s 7 ( a ) loan program are expected to participate in the PPP option also , and the Treasury Department is poised to approve additional lenders in the coming @ @ @ @ @ @ @ around the country such as Bank of America , TD Bank , and Bank of the West .
A more comprehensive list of banks that currently offer 7 ( a ) loans can be found at the SBA website .
In order to move the process along quickly , SBA is not expected to be involved in the approval process , and banks will be able to move forward with candidates independently .
Businesses and nonprofits need to be prepared to provide information about their payroll costs The requirements across the two programs @ @ @ @ @ @ @ the need for a personal guarantee of the loan : • PPP : Businesses are able to obtain 2.5 times their average monthly payroll costs for this loan , up to $ 10 million per organization .
Costs that can be included as payroll costs include worker salaries , paid leave , health care benefits , commissions , and tips .
Average monthly payroll costs will be calculated using either monthly costs the business experienced from February 15 to June 30 , 2019 , or average monthly costs the business experienced from January @ @ @ @ @ @ @ if the business did not open until this year .
Businesses should begin preparing documents that demonstrate their monthly payroll and operational costs including payroll tax filings and rental contracts .
• EIDL : There are no personal guarantees needed for loans less than $ 200,000 , according to Forbes .
Businesses should have documentation ready to show their operating expenses and revenue .
Be aware of the terms for loan forgiveness and for repayment Components of both the EIDL offering and the PPP program are entirely forgivable , and each offers its @ @ @ @ @ @ @ businesses should keep in mind as they are weighing the two .
The PPP loans are 100 percent forgivable , depending on whether businesses lay off workers and how they use the money .
• The loan will be completely forgiven if businesses do not lay off workers at all or if they rehire workers by June 30 , 2020 .
• If a business lays off workers and does not rehire them , a portion of the loan will not be forgiven .
If a business reduces the wages it pays out @ @ @ @ @ @ @ percent during the time that it is using the loan , part of the loan will not be forgiven .
• If the loan is used for costs that are not approved by the bill , those portions will also not be forgiven and will have specific repayment terms .
• Repayment could be deferred for six months and will have an interest rate beginning at 1 percent .
The maximum term of repayment is two years .
• The $ 10,000 EIDL grant that businesses and nonprofits can apply for is forgivable @ @ @ @ @ @ @ range of business needs .
• Aside from the $ 10,000 grant , the rest of the loan is not forgivable .
• The loan will have a 3.75 percent interest rate for small businesses and a 2.75 percent interest rate for nonprofits , and repayment can be deferred for six months .
The maximum term of repayment is 30 years .

Share All sharing options for: How small businesses can get money from the stimulus package
There’s a significant amount of money — $370 billion — allocated to support small businesses in a new bill that Congress passed this week. These funds are in addition to the $377 billion that lawmakers had previously approved in the CARES Act. Figuring out how to access this money, however, can be somewhat confusing.
Vox is here to help.
The funds in the recent legislation are divided among two small-business programs that offer forgivable grants and loans. (These Small Business Administration programs also apply to nonprofits that meet the necessary size requirements.)
The first of these two programs is the Paycheck Protection Program (PPP), which enables organizations to obtain up to $10 million in loans that are 100 percent forgivable if they do not lay off any employees or if they rehire employees they’ve already laid off. Seventy-five percent of this money needs to be spent on payroll for the loan to be entirely forgiven.
The second is the Economic Injury Disaster Loan Program (EIDL), which includes a grant that caps out at $10,000. Businesses that receive this do not need to pay it back. The rest of the EIDL loan, which could go up to $2 million, is not forgivable but can be more flexible than PPP in the types of expenses it covers.
Experts tell Vox that it’s possible for businesses and nonprofits to apply to both — and that they should do so fast if they haven’t already. “We encourage you to apply as quickly as you can because there is a funding cap” reads a statement from the Treasury Department. Since both programs have a limited amount of funding, applying sooner is also important in case their allocated funding is fully used, like it was in the first round.
Currently, the EIDL application is accessible here, and can be submitted directly on the SBA website. The PPP application is also live and can be submitted directly with banks, credit unions, and fintech companies including Square and PayPal.
Both the SBA and banks should be able to begin taking new PPP and EIDL applications in the coming days, in the wake of Congress’s approval of these new funds. Businesses that have already applied do not need to apply again and are already in the queue.
This guide is intended to give a broad overview of both programs, but for specific questions, organizations can reach out directly to the Small Business Administration via a 24/7 helpline: 1-800-659-2955. Businesses are also encouraged to connect with advisers at small-business development centers, women’s business centers, and SCORE, who are available to provide free guidance. (Contact information for the closest regional advisers can be found on their websites.)
Let’s start with what’s included in the stimulus
The Paycheck Protection Program and the Economic Injury Disaster Loan Program are the two main options small businesses and nonprofits have to obtain financial support during the coronavirus outbreak. (It’s worth noting that organizations can receive both loans and that an EIDL loan can also be refinanced into a PPP loan.)
The Paycheck Protection Program (PPP): The bulk of the small business stimulus funds in the new spending bill, roughly $320 billion, will plus-up the Paycheck Protection Program, a new program created last month under the CARES Act to guarantee businesses the loans they need to cover eight weeks of payroll, along with some utility and rent costs.
If businesses keep employees on payroll or rehire them by June 30 after they’ve been laid off, these loans could be fully forgiven. Businesses are able to request 2.5 times their average monthly payroll costs for this loan. At least 75 percent of the loan must be used to cover payroll costs in order for the entirety of it to be forgiven.
Organizations can apply for PPP by calling their banks and lenders directly. Many of these institutions have online forms that are set up specifically for this program, and online platforms like PayPal and Square can now approve loans, too. As a condition in the new bill, about one-fifth of the new funds are specifically set aside for smaller community-based lenders, including Community Development Financial Institutions (CDFIs), which is intended to improve access to these loans.
Economic Injury Disaster Loan Program and Advance (EIDL): There’s $60 billion in the latest stimulus bill allocated for the EIDL, a program that has existed for some time.
This money will go toward two things: It sets up a grant program that would provide an emergency “advance” of as much as $10,000 that businesses won’t have to pay back, and it funds low-interest loans that organizations can use to cover operating expenses, though they will have to repay these funds. The loan amount that organizations can request will be based on the amount of “economic injury” that they have sustained because of the coronavirus.
Businesses and nonprofits can apply for the EIDL directly on the Small Business Administration website.
When do applications open, and when can I expect relief?
Both the EIDL application and the PPP application are now up and running, though there’s still a lot of uncertainty around how long it will take for SBA and banks to process these loans.
Banks have raised concerns about the rushed PPP rollout, and some have limited the loan applications they are receiving to existing customers. Many are warning that the new money that’s been approved by Congress will likely run out quickly, much like the first wave of funding did.
The $10,000 grants that are part of the EIDL program have been viewed as one of the fastest ways for businesses to obtain relief at this point, but this program has also seen overwhelming interest, which could mean delays in how quickly people receive a response about their application. Additionally the amount of the grant is now capped at $1,000 per employee, so any business with less than ten employees would likely not be eligible to receive the full amount.
In the original timeline offered by the agency, if a business is approved for these grants, it would be able to receive them within three days of approval, though businesses have since reported major delays in obtaining status updates.
Any business or nonprofit that applies for an EIDL loan can indicate that it is interested in this emergency advance, and organizations can still receive it even if they aren’t approved for the full loan.
“Businesses applying for EIDL loans are eligible for an emergency advance of up to $10,000 that does not need to be repaid,” Michael Chasalow, the founder of the USC Small Business Clinic, told Vox. “It seems that a business in need of immediate cash should pursue this option.”
Below is what we know so far about how to apply to both programs. We’ll keep updating this guide as more information is released.
First, determine eligibility
The first step for companies and nonprofits interested in these programs is to figure out whether they’re eligible for these specific loans, which are predominantly focused on helping organizations that have suffered economic uncertainty because of the coronavirus outbreak.
In addition to meeting the size standards that are set by the SBA, businesses and nonprofits need to show that they’ve been affected by the coronavirus.
Businesses and nonprofits eligible for the PPP program are required to have been operational on February 15, 2020, and to demonstrate that the economic fallout from the coronavirus has impacted them.
They include:
Any business with 500 or fewer employees
Any 501(c)3 nonprofit that has 500 or fewer employees, or otherwise meets the SBA’s size requirements
Restaurants, hotels, or other businesses categorized under “Accommodation or Food Services” that have 500 or fewer employees at each independent location
Tribal businesses and 501(c)9 veterans organizations
Independently owned franchises
Self-employed workers, independent contractors, gig workers, and sole proprietors
Businesses and nonprofits eligible for the EIDL program are required to have been operational on January 31, 2020, and to have experienced economic uncertainty because of the coronavirus crisis.
They include:
Any business with 500 or fewer employees
Any private nonprofit that has 500 or fewer employees — or otherwise meets the SBA’s size requirements
Sole proprietorships and independent contractors
Tribal businesses, cooperatives, and employee-owned businesses
Next, figure out which loan makes the most sense right now
Organizations will have to evaluate which loan program makes the most sense for their immediate needs, though multiple experts told Vox there’s no harm in applying to both of them.
In fact, this move is encouraged to make sure that businesses have more options — as long as they don’t use the two loans for the same purpose. (An EIDL loan could not be used to pay employees for the month of May if a PPP loan was already being used to do that, for example.)
The focus of the two programs, ultimately, is slightly different.
Under PPP, the loans are predominantly aimed at covering payroll costs (up to $100,000 per employee) but can be used to address other expenses as well, including utilities, rent, and interest on mortgage payments. Loans, of which 75 percent are used to cover payroll costs are 100 percent forgivable at the end of the eight-week period during which they are used, but if more than 25 percent of the money is used for other expenses, that portion of the funds will not be forgiven.
Under EIDL, the grants and loans can be used for a broader array of costs, including rent and mortgage payments, salaries, workers’ paid leave, and the business’s operational needs. Because small business owners don’t have to worry about as many rules around loan forgiveness, there’s slightly more flexibility regarding these funds.
The big difference between the two programs is that the PPP loans are entirely forgivable if companies meet a specific set of requirements, while EIDL loans (except for the $10,000 grant) are not. The cap for PPP loans is also higher, at $10 million per organization, while the EIDL loans cap out at $2 million.
There are two separate processes for applying for these loans
Applications for these loans are expected to go through two different channels.
To apply for the EIDL loan and the $10,000 grant: Small-business owners and nonprofits can apply directly with the Small Business Administration at this website: https://covid19relief.sba.gov/#/. When small businesses submit their applications for the EIDL loan, they can indicate they are interested in the emergency grant at the same time.
Small-business owners and nonprofits can apply directly with the Small Business Administration at this website: https://covid19relief.sba.gov/#/. When small businesses submit their applications for the EIDL loan, they can indicate they are interested in the emergency grant at the same time. To apply for the PPP loan: Organizations can call their current bank or lender directly, and they can download the application at the SBA website.
All 1,800 banks that currently participate in the SBA’s 7(a) loan program are expected to participate in the PPP option, and the Treasury Department is continuing to approve new lenders in recent weeks including PayPal, Square, and Intuit. Smaller lenders, like Community Development Financial Institutions, are also receiving dedicated funds for these loans, as part of the new bill.
Participating institutions already include hundreds around the country such as TD Bank and Bank of the West, though some — like Bank of America — may require businesses to have an existing account with the institution to be considered for PPP. (Businesses can check directly with their banks to determine if this is the case.)
A more comprehensive list of banks that currently offer 7(a) loans can be found at the SBA website, and businesses can look for lenders in their area using the agency’s Lender Match tool. In order to move the process along quickly, SBA is not expected to be involved in the approval process, and banks will be able to move forward with candidates independently.
Businesses and nonprofits need to be prepared to provide information about their payroll costs
The requirements across the two programs differ slightly, though both have relaxed the need for a personal guarantee of the loan:
PPP: Businesses are able to obtain 2.5 times their average monthly payroll costs for this loan, up to $10 million per organization. Costs that can be included as payroll costs include worker salaries, paid leave, health care benefits, commissions, tips, and state payroll taxes.
Average monthly payroll costs can be calculated using monthly costs the business experienced from January through December 2019 or the last 12 months, according to the Treasury Department. If a business is seasonal, it could use the average monthly costs the business experienced between February 15 or March 1, 2019, through June 30, 2019. If the business did not open until this year, the costs would be calculated based on average monthly costs in January and February of 2020.
Businesses should begin preparing documents that demonstrate their monthly payroll and operational costs including payroll tax filings and rental contracts.
EIDL: There are no personal guarantees needed for loans less than $200,000, according to Forbes. Business owners should have documentation including their previous federal tax return and information about personal assets and debt.
Be aware of the terms for loan forgiveness and for repayment
Components of both the EIDL offering and the PPP program are entirely forgivable, and each offers its own unique terms for repayment, which businesses should keep in mind as they are weighing the two.
PPP Terms
The PPP loans are 100 percent forgivable, depending on whether businesses lay off workers and how they use the money.
The loan will be completely forgiven if businesses do not lay off workers at all or if they rehire workers by June 30, 2020.
If a business lays off workers and does not rehire them, a portion of the loan will not be forgiven. If a business reduces the wages it pays out to a worker by more than 25 percent during the time it is using the loan, part of the loan will not be forgiven.
If the loan is used for costs that are not approved by the bill, those portions will also not be forgiven and will have specific repayment terms. Seventy-five percent of the loan must be used to cover payroll costs for the loan to be fully forgiven.
Repayment could be deferred for six months and will have an interest rate beginning at 1 percent. The maximum term of repayment is two years.
EIDL Terms
The $10,000 EIDL grant that businesses and nonprofits can apply for is forgivable and can be used for a wide range of business needs.
Aside from the $10,000 grant, the rest of the loan is not forgivable.
The loan will have a 3.75 percent interest rate for small businesses and a 2.75 percent interest rate for nonprofits, and repayment can be deferred for six months. The maximum term of repayment is 30 years.
Correction, April 3: A previous version of this article included the wrong number for the SBA helpline.
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vox--2020-04-03--How to get the coronavirus unemployment benefits, explained

Millions of newly laid-off Americans are now wondering how to access government unemployment benefits as they scramble to cover rent , groceries , and other daily necessities .
Vox is here to help readers navigate the bureaucracy .
Congress has significantly expanded unemployment insurance as part of its historic $ 2 trillion CARES Act , signed into law by President Donald Trump .
Laid-off or furloughed Americans who file for unemployment through their states will see an extra $ 600 per week added on to that existing state benefit .
The average benefit in the US is about $ 385 @ @ @ @ @ @ @ more generous than others .
There are a few key things to know about this new law , as my colleague Dylan Matthews recently explained .
First and foremost , it adds $ 600 to every weekly unemployment check .
Second , more people now qualify for unemployment insurance than before .
The law creates a new program called Pandemic Unemployment Assistance for freelancers , independent contractors , or gig economy workers who previously were ineligible for unemployment insurance .
These programs will provide people the increased assistance for four months — late @ @ @ @ @ @ @ makes benefits easier to access by waiving some states ’ requirements for people to look for work .
“ The UI provisions in the CARES Act were some of — if not the — strongest provisions of the act , ” said labor economist Heidi Shierholz of the Economic Policy Institute and formerly part of the Obama administration .
“ It will alleviate the hardship of millions of people.
” Many states are cautioning they don ’ t yet know when the additional federal money will show up but are still telling newly @ @ @ @ @ @ @ get the process started .
The process could be a bit more complex for contract or self-employed workers who need to file for Pandemic Unemployment Assistance and are waiting for states to set up these programs .
Because so many people are filing for unemployment all at once , it is causing frustrating delays .
Many people are experiencing jammed phone lines , and some state unemployment websites are crashing with the high demand , including New York and Florida .
“ The system ’ s a little clogged up right now , @ @ @ @ @ @ @ policy analyst at the National Employment Law Project .
“ People should keep trying.
” Evermore noted that even if some workers are being told they ’ re not eligible this week , that could change in the coming weeks as states start receiving the federal money and set up the Pandemic Unemployment Assistance program .
“ The states need resources in order to administer the UI , ” House Speaker Nancy Pelosi told Vox on a Thursday press call .
“ Some are much better prepared than others or just have a @ @ @ @ @ @ @ things we may have to do is get more resources to the state agencies that do this.
” Vox crowdsourced common questions from readers and contacted experts to answer them .
Here ’ s our guide on how to access unemployment benefits , who is covered , and much more .
How much does my state offer in base unemployment benefits ?
And where do I apply ?
Here ’ s a chart that shows each state ’ s minimum and maximum weekly unemployment benefit , as well as a link to each @ @ @ @ @ @ @ can apply online or over the phone , though many states are recommending online applications due to busy phone lines .
Each state has its own guidance , but due to high demand , some states are advising people to call on certain days or at certain times depending on the alphabetical order of their last names or order of their Social Security numbers .
Check your state ’ s website to find out if there are specific guidelines .
Who qualifies for this expanded unemployment insurance program ?
The CARES Act opened @ @ @ @ @ @ @ people who weren ’ t eligible before , including gig economy workers like drivers for Uber or Lyft , freelancers , and independent contractors .
Part-time employees who lost their jobs due to coronavirus will also be covered , as will people who had to stop working to take care of a sick member of their family or homeschool their children .
Bottom line : If coronavirus is responsible for your layoff , furlough , or drastic reduction of your hours — or is preventing you from looking for work because fewer employers @ @ @ @ @ @ @ chance of getting these expanded benefits .
It ’ s worth applying even if you are unsure if you ’ ll be covered .
Who doesn ’ t qualify for this expanded unemployment insurance program ?
People who are working from home but still getting a full wage are not eligible for benefits .
Undocumented immigrants are not eligible ; neither are new entrants into the workforce , like recent college graduates , because they don ’ t have a long enough work history to apply for benefits .
What documentation do I @ @ @ @ @ @ @ ?
States ask for some basic information during the application process , including : • Your name , birthday and Social Security number • Your last employer ’ s information , including company name , supervisor ’ s name , address , and phone number • The last date you worked and the reason you are no longer working • Your gross earnings in the last week you worked ( starting Sunday and ending with your last day on the job ) • You may also be asked about the other employers you @ @ @ @ @ @ @ , including the employer name , address , dates of employment , gross wages earned , hours worked per week and hourly rate of pay , and the reason you are no longer working .
This means keeping documentation about your previous income and wages is key .
This information can be found on your W-2s , paystubs , or invoices if you are a freelancer or independent contractor .
When will the extra $ 600 show up in my unemployment check ?
This isn ’ t really known yet .
Experts told @ @ @ @ @ @ @ because it will take time for the US Department of Labor to coordinate with state unemployment agencies to get the money flowing .
It could potentially be longer for freelancers and independent contractors to get the benefit because they are waiting for the government to set up an entirely new program .
“ The $ 600 with existing benefits , people should be in a position to get that within 3 weeks , ” said Andrew Stettner , a senior fellow at the Century Foundation .
“ The disaster benefits , they ’ @ @ @ @ @ @ @ to develop the intake.
” How much could I get over four months ?
And what happens if there ’ s a delay in getting the extra money ?
All told , the extra $ 600 per week will add up to around an extra $ 10,000 over four months .
If there is a delay in it showing up in people ’ s paychecks ( which there likely will be ) , people will be getting retroactive pay in their first paychecks to make up for the lag time .
“ That @ @ @ @ @ @ @ more money to people who really need it , ” said Stettner .
“ It has the ability to prevent some of the real damaging parts of unemployment : reducing your savings , food security , having trouble maintaining your housing ” What ’ s the difference between being furloughed and being laid off ?
Do furloughed employees qualify for the expanded unemployment insurance program ?
Unlike a more permanent layoff , a furlough is a temporary period of unemployment — with a promise that the employee will return to work when economic @ @ @ @ @ @ @ here is that while furloughed employees forgo their wages , they keep other benefits like health insurance .
Employees who have been furloughed due to coronavirus will be eligible for expanded unemployment insurance .
What ’ s the process for gig economy workers or independent contractors ?
Freelancers , gig economy workers , and independent contractors will file for unemployment insurance from a new program called Pandemic Unemployment Assistance , which is still being set up by the Labor Department and states and could take longer to be ready .
When the program @ @ @ @ @ @ @ on state unemployment websites where people apply for regular UI .
Check your state ’ s website for guidance on when and how you should apply , if you fall into this category .
“ Gig workers will need to file for PUA first , and then they will get the $ 600 , ” said Stettner .
“ This is the new program part of the law and will take the longest to set up — the pandemic program for gig workers et al.
” What documentation do freelancers or independent contractors @ @ @ @ @ @ @ to prepare to get benefits ?
Keeping documentation about your previous income and wages as a freelancer , independent contractor , or self-employed worker is important and will help you while filing for unemployment .
Keep documentation both about how you get your money and how much you have been paid per month in the past ( old tax returns and invoices are good examples ) .
“ Whatever documentation they have about how they get their money would be helpful , ” Evermore added .
If people are lacking documentation , they @ @ @ @ @ @ @ to unemployment offices — but documents are preferred .
If you ’ re working two-part time jobs and lose one , can you get benefits for the lost job while still working the other ?
Though part-time workers are eligible for expanded benefits , the answer to this question depends on whether the weekly earnings from the second job erase the partial benefit credit you ’ d get from unemployment , Stettner said .
“ In simplest terms , the closer the pay of the second part-time job they have is ... to @ @ @ @ @ @ @ the less likely they are to get benefits .
The bigger the difference , the more likely to get benefits , ” he said .
What if you just got a job offer that is now rescinded or up in the air due to coronavirus ?
Again , you are eligible for the expanded unemployment benefits .
Having documentation here is also important if you can get it ; for instance , having both your offer and a written statement rescinding or postponing that offer that you can send to your state ’ @ @ @ @ @ @ @ filing for unemployment .
“ However you found your offer was rescinded , keep that handy , ” Evermore said .
What if you were unemployed prior to the crisis and are having no luck finding jobs ?
Can you apply for benefits even if your old benefits ran out ?
Yes .
Anyone who has exhausted their regular unemployment insurance can get a 13-week extension on their benefits .
Once that extension is exhausted , workers can apply for Pandemic Unemployment Assistance , Evermore said .
“ That can go up to @ @ @ @ @ @ @ .
What is the situation for new or soon-to-be college graduates who can ’ t find a job ?
People who are a few months away from graduating college and looking for jobs are in more of a bind because of their limited work history .
There ’ s a provision in a recently released bill from House Democrats that would allow recent college graduates to qualify for something called a “ job seekers allowance , ” about half of the benefits available for the rest of workers .
But unless Congress passes @ @ @ @ @ @ @ college graduates are in a tough spot .
What about employees in houses of worship , including ministers , rabbis , or imams ?
In many states , congregations don ’ t pay unemployment insurance and employees aren ’ t eligible for unemployment .
So unless the specific employer has decided to voluntarily participate in unemployment insurance , employees of churches , synagogues or mosques likely won ’ t be eligible in most states .
However , Stettner and Evermore said it depends on how the US Department of Labor interprets the language @ @ @ @ @ @ @ new pandemic program is treated like a standard disaster relief program , church , synagogue , and mosque employees could be covered — but that won ’ t be determined until Labor provides more information about how the program is being implemented .

Millions of newly laid-off Americans are now wondering how to access government unemployment benefits as they scramble to cover rent, groceries, and other daily necessities. Vox is here to help readers navigate the bureaucracy.
Congress has significantly expanded unemployment insurance as part of its historic $2 trillion CARES Act, signed into law by President Donald Trump. Laid-off or furloughed Americans who file for unemployment through their states will see an extra $600 per week added on to that existing state benefit. The average benefit in the US is about $385 per week, but some states are more generous than others.
There are a few key things to know about this new law, as my colleague Dylan Matthews recently explained. First and foremost, it adds $600 to every weekly unemployment check. Second, more people now qualify for unemployment insurance than before. The law creates a new program called Pandemic Unemployment Assistance for freelancers, independent contractors, or gig economy workers who previously were ineligible for unemployment insurance.
The law also makes benefits easier to access by waiving some states’ requirements for people to look for work. These programs will provide people the increased assistance for four months — late March until July. And with many states still setting up their Pandemic Unemployment Assistance programs, benefits will be paid out retroactively. That means even if workers can’t apply for benefits until May, they will ultimately still receive what they are owed from the time they were laid off.
“The UI provisions in the CARES Act were some of — if not the — strongest provisions of the act,” said labor economist Heidi Shierholz of the Economic Policy Institute and formerly part of the Obama administration. “It will alleviate the hardship of millions of people.”
People who have already filed for regular unemployment benefits because they were laid off from a job should be starting to see the expanded benefit show up in their checks. The process could be a bit more complex for contract or self-employed workers who need to file for Pandemic Unemployment Assistance and are waiting for states to set up these programs.
But because so many people are filing for unemployment all at once, it is causing frustrating delays. Many are experiencing jammed phone lines, and many state unemployment websites have crashed with the high demand, including states like New York, Florida, and Michigan.
“The system’s a little clogged up right now,” said Michele Evermore, a senior policy analyst at the National Employment Law Project. “People should keep trying.” Evermore noted that even if some workers are being told they’re not eligible immediately, that could change in the coming weeks as states start receiving the federal money and set up the Pandemic Unemployment Assistance program.
“The states need resources in order to administer the UI,” House Speaker Nancy Pelosi told Vox recently. “Some are much better prepared than others or just have a different timetable. So one of the things we may have to do is get more resources to the state agencies that do this.”
Vox crowdsourced common questions from readers and contacted experts to answer them. Here’s our guide on how to access unemployment benefits, who is covered, and much more.
Your unemployment insurance questions, answered
How much does my state offer in base unemployment benefits? And where do I apply?
Here’s a chart that shows each state’s minimum and maximum weekly unemployment benefit, as well as a link to each state’s unemployment office. People can apply online or over the phone, though many states are recommending online applications due to busy phone lines.
Each state has its own guidance, but due to high demand, some states are advising people to call on certain days or at certain times depending on the alphabetical order of their last names or order of their Social Security numbers. Check your state’s website to find out if there are specific guidelines.
Who qualifies for this expanded unemployment insurance program?
The CARES Act opened up unemployment benefits to a range of people who weren’t eligible before, including gig economy workers like drivers for Uber or Lyft, freelancers, and independent contractors. Part-time employees who lost their jobs due to coronavirus will also be covered, as will people who had to stop working to take care of a sick member of their family or homeschool their children.
Bottom line: If coronavirus is responsible for your layoff, furlough, or drastic reduction of your hours — or is preventing you from looking for work because fewer employers are hiring — you have a good chance of getting these expanded benefits. It’s worth applying even if you are unsure if you’ll be covered.
Who doesn’t qualify for this expanded unemployment insurance program?
People who are working from home but still getting a full wage are not eligible for benefits. Undocumented immigrants are not eligible; neither are new entrants into the workforce, like recent college graduates, because they don’t have a long enough work history to apply for benefits.
What documentation do I need to sign up for unemployment insurance?
States ask for some basic information during the application process, including:
Your name, birth date, and Social Security number
Your last employer’s information, including company name, supervisor’s name, address, and phone number
The last date you worked and the reason you are no longer working
Your gross earnings in the last week you worked (starting Sunday and ending with your last day on the job)
You may also be asked about other employers you worked for in the past 18 months, including the employer name, address, dates of employment, gross wages earned, hours worked per week and hourly rate of pay, and the reason you are no longer working.
This means keeping documentation about your previous income and wages is key. This information can be found on your W-2s, paystubs, or invoices if you are a freelancer or independent contractor.
When will the extra $600 show up in my unemployment check?
This will vary state by state, but the extra money should have started to appear in people’s weekly checks — it could longer for those still waiting for their applications to go through. It takes time for the US Department of Labor to coordinate with state unemployment agencies to get the money flowing. While some states have their Pandemic Unemployment Assistance programs up and running, others are still setting their programs up. Depending on what state you live in, it could take longer for freelancers and independent contractors to get their benefit.
“The disaster benefits, they’re going to take a little time to develop the intake,” said Andrew Stettner, a senior fellow at the Century Foundation.
How much could I get over four months? And what happens if there’s a delay in getting the extra money?
All told, the extra $600 per week will add up to around an extra $10,000 over four months. If there is a delay in it showing up in people’s paychecks (which there likely will be), people will be getting retroactive pay in their first paychecks to make up for the lag time.
“That is a way to get a lot more money to people who really need it,” said Stettner. “It has the ability to prevent some of the real damaging parts of unemployment: reducing your savings, food security, having trouble maintaining your housing.”
What’s the difference between being furloughed and being laid off? Do furloughed employees qualify for the expanded unemployment insurance program?
Unlike a more permanent layoff, a furlough is a temporary period of unemployment — with a promise that the employee will return to work when economic conditions improve. But the big difference here is that while furloughed employees forgo their wages, they keep other benefits like health insurance. Employees who have been furloughed due to coronavirus will be eligible for expanded unemployment insurance.
What’s the process for gig economy workers or independent contractors?
Freelancers, gig economy workers, and independent contractors will file for unemployment insurance from a new program called Pandemic Unemployment Assistance, which is still being set up by the Labor Department and states and could take longer to be ready in some states (Washington state, Massachusetts, Pennsylvania, and other states have announced their programs will be ready to take applications by the end of April, while other states like Ohio and Arizona will start accepting applications by mid-May). When the program is available, it can be accessed on state unemployment websites where people apply for regular UI. Check your state’s website for guidance on when and how you should apply, if you fall into this category.
“Gig workers will need to file for PUA first, and then they will get the $600,” said Stettner. “This is the new program part of the law and will take the longest to set up — the pandemic program for gig workers et al.”
What documentation do freelancers or independent contractors who rely on invoices or cash need to prepare to get benefits?
Keeping documentation about your previous income and wages as a freelancer, independent contractor, or self-employed worker is important and will help you when filing for unemployment. Keep documentation both about how you get your money and how much you have been paid per month in the past (old tax returns and invoices are good examples).
“Whatever documentation they have about how they get their money would be helpful,” Evermore added. If people are lacking documentation, they can file good-faith attestations about their wages to unemployment offices, but documents are preferred.
If I’m working two-part time jobs and lose one, can I get benefits for the lost job while still working the other?
Though part-time workers are eligible for expanded benefits, the answer to this question depends on whether the weekly earnings from the second job erase the partial benefit credit you’d get from unemployment, Stettner said.
“In simplest terms, the closer the pay of the second part-time job they have is ... to the first part-time job they lost, the less likely they are to get benefits. The bigger the difference, the more likely to get benefits,” he said.
What if I just got a job offer that is now rescinded or up in the air due to coronavirus?
Again, you are eligible for the expanded unemployment benefits. Having documentation here is also important if you can get it; for instance, having both your offer and a written statement rescinding or postponing that offer that you can send to your state’s unemployment office can be helpful when filing for unemployment.
“However you found your offer was rescinded, keep that handy,” Evermore said.
What if I was unemployed prior to the crisis and am having no luck finding jobs? Can I apply for benefits even if my old benefits ran out?
Yes. Anyone who has exhausted their regular unemployment insurance can get a 13-week extension on their benefits. Once that extension is exhausted, workers can apply for Pandemic Unemployment Assistance, Evermore said. “That can go up to 39 weeks total,” she added.
What is the situation for new or soon-to-be college graduates who can’t find a job?
People who are close to graduation and looking for jobs are in more of a bind because of their limited work history.
There’s a provision in a bill from House Democrats that would allow recent college graduates to qualify for something called a “job seekers allowance,” about half of the benefits available for the rest of workers. But unless Congress passes a provision to allow this, recent college graduates are in a tough spot.
What about employees in houses of worship, including ministers, rabbis, or imams?
In many states, congregations don’t pay unemployment insurance and employees aren’t eligible for unemployment. So unless the specific employer has decided to voluntarily participate in unemployment insurance, employees of churches, synagogues or mosques likely won’t be eligible in most states.
However, Stettner and Evermore said it depends on how the US Department of Labor interprets the language of the CARES Act. If the new pandemic program is treated like a standard disaster relief program, church, synagogue, and mosque employees could be covered — but that won’t be determined until Labor provides more information about how the program is being implemented.