When the COVID-19 pandemic has commenced, it has impacted many businesses, jobs, and even industries. Some had to shut down while others have to reduce their workforce since they do not have the budget to pay for their salaries. Along with these, safety protocols quickly began to implement to decelerate the spread of the virus.
As a result, many citizens are challenged in different aspects, specifically regarding financial terms. Consequently, this is where the $900 billion stimulus package bill comes into play.
In this article, we will talk more about the crucial information you need to know about this Check, or others might call it a ‘package’. Let’s see!
What is this Stimulus Package?
Last December 2020, Donald Trump signed the Stimulus Package Bill into law. This bill’s primary objective is to help the American citizens and businesses financially impaired by the pandemic.
The Stimulus Package Bill is administered by providing funding assistance, stimulus check, unemployment benefits, and allocating budgets for imperative societal sectors and activities such as childcare, education, and health care systems (vaccines, tracing, and the like).
Here are the benefits that the stimulus package can give:
1. Increased Unemployment Benefit
As stated above, many people lost their jobs because of these health and economic crises. In numbers, 6.7% of Americans are unemployed, and this number grows this January 2021 because of the businesses and companies that frequently cease their operation.
For this reason, there would be a $300 benefit given per week for the unemployed Americans starting from December 26, 2020, until March 14, 2021. Hence, this benefit has a duration of eleven weeks.
On top of this, unemployed workers will incur an additional amount of $100 per week.
But in order to qualify, you should have earned at least a minimum of $5000 in self-employment income in 2019. More so, it would be further extended to April 5, 2021, if you became unemployed.
2. Rent Assistance
One of the major utilities that most people pay is the house rent. Most of the time, it consumes a considerable portion of our income. Thus, rental assistance is given to cover rental fees for 12 months to a year.
But before enjoying this benefit, you must qualify for these three prerequisites:
Firstly, your household members, either individual or more, should be impacted by the pandemic and eligible for the unemployment benefit. Second, you must show proof of housing instability through overdue bills, rents, and eviction notices. And lastly, you should possess a household income that is less than the 80% average income per household in your area.
3. $600 Stimulus Checks
In biology, some changes trigger the organisms to respond to a stimulus.
In our case, the most significant stimulus is the COVID 19 pandemic since its impact created an immense change in the physical, social, financial, mental, and economic aspects of both the country’s citizens.
Currently, the IRS provides a $600 worth stimulus check, which is equivalent to one share of Tesla.
But in order to qualify for this, your income brackets should be in the range of no more than $75 000 or $150 000, if you have, are married. Nevertheless, if your income exceeds your bracket, every excess of $100 will get deducted reduced by $5.
The government will use your 2019 tax return as the basis for this benefit. But if you experienced a decline in income in 2020, you can file a tax return to gain financial losses.
4. Financial Aid
The government also considered the small businesses’ welfare, especially their economic statuses that are too battered by the COVID-19 pandemic.
The government provides financial aid to the U.S Small Business Association (SBA) with $284 billion centralized on the Payment Protection Program (PPP). Simultaneously, the program enables small businesses to loan with a diminutive interest rate to remain monetarily stable despite the current health crisis.
If a business diminishes revenue by 25%, it will be available for another loan and funding round.
Then again, a condition is always present. This condition is about using the loan for qualified expenses such as employee’s salaries, business lunch and dinners, and the company’s reasonable costs, which does not have to be paid anymore.
Thus, becoming free money. But if used for fraud, you will pay for the consequences.
Reality Check, Hard Truth, and More Provisions to Different Sectors
The $900 billion Stimulus Package favors businesses rather than you. At the same time, you can still benefit from it because when the corporations took a loan with low interest under the PPP, your company will stay on track and is capable of paying your salaries.
Additionally, the $82 billion funds are already allocated for the education system that has the core purpose of reinforcing safety protocols.
Meanwhile, a sum of $69 billion is distributed for the health care system such as vaccination ($29 billion), $22 billion for COVID-19 testing (swab tests and such) and contract testing, $9 billion for our front medical liners, and $4.5 billion for our mental health. And another $45 billion for transportation.
But if you want to take a clear picture of what I’m talking about, here’s
the complete breakdown of it:
- $15 billion for airlines’ payroll support.
- $10 billion for state highways.
- $2 billion for airports, and $1 billion for Amtrak.
- $26 billion fr the farmers, ranchers, food banks, food aids, nutritional assistance, and the whole agricultural sector.
- $15 billion will go for public venues, childcare assistance.
- 10 billion for the postal service.
In another event, the law stated a bizarre situation specifically written on page 5095 to alleviate the United States and Dalai Lama’s relationship regarding their dialogue and cooperation. It also contains the Trademark Modernization Act of 2020, enabling copyright owners to use their trademarks efficiently.
Indeed, it is difficult for most of us to make ends meet and keep afloat during this pandemic. Although it is not the same as how it was expected to be, the stimulus package somehow can aid the pandemic-induced hardships for many.
Essentially, there will be a possible stimulus package to alleviate the state and economy’s struggles until there is already an effective yet efficient cure that can combat Coronavirus disease, which will turn back our daily living to how it is used to be in the past.
No facemasks, face shields, no social distancing, and of course, no COVID-19 pandemic.
