Below are some resources to help you navigate your finances during the COVID-19 crisis.
Homeowners unable to make their mortgage payments resulting from the impact of COVID-19 (regardless of whether they have
contracted the virus) may be eligible for a mortgage forbearance plan to reduce or suspend their mortgage payments for up to 12
This assistance is available to homeowners with single family or condominium mortgages owned by Fannie Mae or Freddie Mac
(the Enterprises) regardless of whether their property is owner occupied, a second home, or an investment property
Click here for FAQs
Check to see if your loan is owned by Fannie Mae or Freddie Mac.
Fannie Mae- https://www.knowyouroptions.com/loanlookup
Freddie Mac- https://ww3.freddiemac.com/loanlookup/
Check with your mortgage lender. Many banks are following the implementing the same guideline for conventional mortgages as with the FHA loans. Be sure to contact your lender for specific information.
Student Loan Assistance
Federal Student Loans
Your payments will automatically stop from March 13, 2020, through Sept. 30, 2020.
To provide relief to student loan borrowers during the COVID-19 national emergency, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payment. This suspension of payments will last until Sept. 30, 2020, but you can still make payments if you choose. Read the borrower Q&As below to learn more.
Private Student Loans- Be sure to check with your lender to see what financial assistance is available due to COVID-19.
Tax Day- The due date for both tax returns and tax payments has been pushed back to July 15, 2020. As long as you file by July 15th, you will no incur any failure to file or failure to pay penalties or interest.
Stimulus Checks- The Treasury Department and the Internal Revenue Service announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Some taxpayers who do not have banking information on file with the IRS will need to complete a simple form which is scheduled to be available on the IRS website in mid-May.
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
Major changes to unemployment assistance, increasing the benefits and broadening who is eligible. States will still continue to pay unemployment to people who qualify. That amount varies state by state, as does the amount of time people are allowed to claim it. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
Small Business Assistance
So far, Congress has passed three bills that concerning COVID-19. All three have had provisions for small business owners. Below is a brief summary of the assistance available.
The SBA is offering low-interest federal disaster loans to small businesses suffering substantial economic harm as a result of the coronavirus. These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact.
Paid Sick Leave Credit
Employers with fewer than 500 employees with refundable payroll tax credits to cover the cost of providing the paid sick leave and the paid FMLA leave to their employees.
Payroll Protection Program
A new lending program that allows businesses to borrow enough to cover monthly payroll costs for businesses for up to 2.5 months. If used for payroll, mortgage interest or other qualified expenses, these loans will be forgiven as long as the employer continues to employ its workers or rehires them when they reopen for business.
To apply for the PPP Loan, business must apply through SBA member banks.
Economic Injury Disaster Loan (EIDL)
Provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance of up to $10,000 will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
Business can apply for this loan at disasterloan.sba.gov.