Phase 1 - H.R. 6074, the Coronavirus Preparedness and Response Supplemental Appropriations Act – President Trump signed this into law on March 6.
- $8.3 billion funding package for coronavirus preparedness and response.
- More than $4 billion to make diagnosis tests more broadly available.
- $2.2 billion for the Centers for Disease Control and Prevention (CDC).
- $1.25 billion for the State Department and the USAID to protect Americans abroad and prevent the spread of the virus worldwide.
- $20 million to administer disaster assistance loans for small businesses.
Phase 2 - H.R. 6201, the Families First Coronavirus Response Act – President Trump signed this into law on March 18.
- $1.2 billion for free testing, including $142 million to eliminate copay requirements for servicemembers and veterans.
- $1.25 billion to provide emergency nutritional assistance for senior citizens, women, children, and low-income families, including:
- $500 million for the Special Supplemental Nutrition Program for Women, Infants, and Children;
- $400 million for the Emergency Food Assistance Program; and
- $250 million for senior nutrition programs, including:
- $160 million for home-delivered meals,
- $80 million for meals at senior centers, and
- $10 million for meal services for Native Americans.
- Includes increased funding and flexibility to ensure children still have access to free and reduced meals when local school districts close.
- Requires employers with less than 500 employees to provide 14 days of paid leave and also up to three months paid leave under FMLA at two-thirds of the covered employees pay rate.
- Employers will receive reimbursement for amounts paid to covered employees through a tax credit applied to quarterly payroll taxes.
- $15 million for the Internal Revenue Service to administer tax credits in the bill.
Phase 3 - H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act – President Trump signed into law on March 27.
- $1.2 billion for free testing, including $142 million to eliminate copay requirements for servicemembers and veterans.
- Economic recovery checks directly to Americans ($1,200 for each American making $75,000 or less)
- Creation of the Pandemic Unemployment Assistance Program to help states struggling to keep up with unemployment benefits
- More than $100 billion to help hospitals and community health centers keep their doors open.
- $350 billion to a new Payment Protection Loan program to help small businesses continue to operate.
- Six-month deferment on student loan payments and allows businesses to provide tax-free assistance to pay employees' student debt.
- $500 billion for an economic stabilization funds to help industries who have been decimated.
- $150 billion to help local and state governments struggling from lost tax revenue. Amount will be based on a state's population.
- H.R. 133, the Coronavirus Response and Relief Supplemental Appropriations Act -
President Trump signed into law on December 27th, 2020.
- $20 billion for purchase of vaccines that will make the vaccine available at no charge for anyone who needs it, $8 billion for vaccine distribution
- Economic recovery checks directly to Americans ($600 for each American making $75,000 or less)
- Extends Pandemic Unemployment Assistance Program to help states struggling to keep up with unemployment benefits. Adds program integrity, anti-fraud, measures to unemployment assistance.
- Provides forgiveness of amounts overpaid to individuals by States who received the amounts at no fault of their own. More details will be added as this program is implemented.
- $284.5 billion dollars to reopen and strengthen the PPP for first time and second time borrowers
- $20 billion dollars to restart and extend the SBA’s EIDL Advance Grant for small businesses in low income communities
- $10 billion for grants to childcare centers to help providers safely reopen
- $82 billion in funding for schools and universities to assist with reopening for in-person learning, includes $2.75 billion in designated funds for private K through 12 education
- $25 billion in temporary and targeted rental assistance for individuals who lost their source of income during the pandemic, Extends the eviction moratorium until January 31, 2021
- H.R.1319 - American Rescue Plan Act of 2021
– President Biden signed into law on March 11, 2021.
While I opposed this legislation (read statement here) I am providing the below for informational purposes
- $7.5 billion directed to the Centers for Disease Control and Prevention to plan, prepare for, promote, distribute, administer, monitor and track COVID-19 vaccines. Illinois will receive $275 million to speed up the distribution of vaccines and set up community vaccination centers
- Economic recovery checks directly to Americans ($1400 for each American making $80,000 or less)
- Extends federal unemployment benefit of $300-a-week to supplement state unemployment insurance payments and extends Pandemic Unemployment Assistance for self-employed or contract workers.
- Issues a one-year increase of the Child Credit to $3,600 per child under the age of 6, and $3000 for children younger than the age of 18.
- $7.25 billion in additional funding for the Paycheck Protection Program and expands eligibility to nonprofits and digital news services. Also adds $15 billion for Economic Injury Disaster Loan Advance (EIDL) payments
- Creates the Restaurant Revitalization Fund with $28.6 billion for industry-focused grants. Additional funds are allocated for the Shuttered Venue Operators Grant program, and allows businesses to apply for both a PPP loan after Dec. 27, 2020, and the SVOG. The Small Business Administration will begin accepting SVOG applications on April 8th, 2021.
- $350 billion targeted aid to state and local governments struggling from lost tax revenue
- $130 billion in additional funding toward returning K-12 schools to in-person learning. Adds an additional $40 billion to Higher Education Emergency Relief Fund
- Allocates nearly $40 billion to the childcare sector, nearly $15 billion will provide expanded child care assistance through the Child Care and Development Block Grant (CCDBG)
- Provides a 100% subsidy of COBRA Health Premiums and eliminates Health Insurance Marketplace premiums for people who receive unemployment insurance in 2021
If You Did Not Receive An Economic Impact Payment
Eligible individuals who did not receive an Economic Impact Payment – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC.
Economic Impact Payment #1 (Spring of 2020)
The CARES Act created non-taxable Economic Impact Payments to Americans in the amount of $1,200 per individual ($2,400 for joint filers), plus $500 per dependent age 16 and under. Income eligibility based on 2019 returns if filed, or 2018 if unfiled. The full payment was issued to those with an Adjusted Gross Income (AGI) of under $75,000 ($150,000 for joint filers) that phases out up to $99,000 ($198,000 for joint filers) at which point no payment will be issued.
Economic Impact Payment #2 (Winter of 2020/2021)
Authorized by the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the second round of payments, or “EIP 2,” is generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.
Economic Impact Payment #3 (Spring of 2021)
Authorized by the newly enacted COVID-relief legislation, the third round of payments, is generally $1400 for singles and $2,800 for married couples filing a joint return. In addition, those with qualifying children will also receive $1,400 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.
Payments are automatic for eligible taxpayers
Payments are automatic for eligible taxpayers who filed a 2019 tax return, those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return. page 2
Payments are also automatic for anyone who successfully registered for the first payment online at IRS.gov using the agency’s Non-Filers tool by Nov. 21, 2020 or who submitted a simplified tax return that has been processed by the IRS.
How do I find out if the IRS is sending me a payment?
People can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers.
How will the IRS know where to send my payment? What if I changed bank accounts?
The IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
Is any action needed by Social Security beneficiaries, railroad retirees and those receiving veterans’ benefits who are not typically required to file a tax return?
Most Social Security retirement and disability beneficiaries, railroad retirees and those receiving veterans’ benefits do not need take any action to receive a payment. Earlier this year, the IRS worked directly with the relevant federal agencies to obtain the information needed to send out the new payments the same way benefits for this group are normally paid. For eligible people in this group who didn’t receive a payment for any reason, they can file a 2020 tax return.
I didn’t file a tax return and didn’t register with the IRS.gov non-filers tool. Am I eligible for a payment?
Yes, if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return.
Will I receive anything for my tax records showing I received a second Economic Impact Payment?
Yes. People will receive an IRS notice, or letter, after they receive a payment telling them the amount of their payment. They should keep this for their tax records.
Where can I get more information?
For more information about Economic Impact Payments and the 2020 Recovery Rebate, key information will be posted on IRS.gov/eip. You may check the status of your payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.
The CARES Act created the Paycheck Protection Program (PPP) to provide small businesses (1-500 employees) with relief in the form of an 8 week, 100% forgivable, federally-guaranteed loan. Click here to search in your area for a PPP lender.
The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 provides $284.5 billion dollars to reopen and strengthen the PPP for first time and second time borrowers. It gives businesses experiencing severe revenue reductions an opportunity to apply for a second draw PPP loan. It provides $20 billion dollars to restart and extend the SBA’s EIDL Advance Grant for small businesses in low income communities. The Act also creates a process for existing EIDL Advance grantees that received less than $10,000 dollars to reapply for the difference between what they received and the maximum EIDL Advance Grant of $10,000 dollars. Additionally the legislation repeals the CARES Act provision that requires PPP borrowers to deduct their EIDL Advance from their PPP loan forgiveness amount.
Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, a small business has the ability to receive a second PPP if certain circumstances are met:
- Employs not more than 300 employees
- Demonstrates a 25 percent gross receipts reduction in one quarter of 2020 as compared to the same quarter in 2019. To utilize Q4 of 2020, the application would have to be submitted after the January 1, 2021.
- If the small business wasn’t in business in Q1 and Q2 2019, then they must use Q3 and Q4 of 2020 to determine revenue.
- If the small business wasn’t in business in Q1, Q2, and Q3 in 2019, then they must use Q4 of 2020 to determine revenue.
- If the small business wasn’t in business in 2019 but they were in business prior to Feb. 15, 2020, then they must use Q1 of 2020 to determine revenue.
Beginning Monday, January 11, 2021, the Small Business Administration (SBA) and the Department of the Treasury will open the PPP to small businesses that have not received a first draw PPP and the entities that are newly eligible such as 501(c)(6)s. The Monday, January 11, 2021 opening date will be reserved for community financial institutions, including Community Development Financial Institutions (CDFIs) to make first draw PPP loans. These same community financial institution lenders will then be able to make second draw loans on Wednesday, January 13, 2021.
The American Rescue Plan of 2021, provides $50 billion in aid to small businesses affected by the pandemic. This funding includes $28.6 billion to create the Restaurant Revitalization Fund, expands PPP eligibility, provides additional $7.25 billion in PPP funding, $15 billion for the Economic Injury Disaster Loan (EIDL) Advance Grants Program, and $1.25 billion for the Shuttered Venue Operators Grant program which will begin accepting applications on April 8th, 2021.
The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
Shuttered Venue Operators Grant
Paycheck Protection Program
Paid Leave and Expanded FMLA
The CARES Act created the temporary Pandemic Unemployment Assistance (PUA) program to provide federal unemployment coverage for individuals traditionally not eligible for unemployment assistance. The PUA program provided an additional $600/week to individuals receiving unemployment insurance or payments for up to 4 months. Individuals who previously exhausted state unemployment benefits, were eligible for an additional 13 weeks of federal benefits.
The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 provides unemployed individuals an additional $300 per week for 10 weeks from December 26, 2020-March 14, 2021. It also increases the number of weeks available in PUA from 39 to 50 to cover people who have almost used up all their benefits. In addition, it allows for forgiveness of amounts overpaid to individuals by States who received the amounts at no fault of their own.
The American Rescue Plan extends Federal Pandemic Unemployment Assistance through September, 6th 2021 and provides $300-a-week federal supplement to state unemployment insurance payments including, for self-employed or contract workers. Under this law, the first $10,200 in unemployment benefits received in 2020 will be exempt from federal income taxes for households who made less than $150,000.
The program will be fully administered by the State of Illinois. You can apply for unemployment insurance with the Illinois Department of Employment Security by clicking here or by calling 1-800-244-5631.