Time to Read: 2 minutes
Coronavirus Stimulus Package Explained:
- The stimulus is broken into three phases. This is a digestible explanation of each phase.
- Learn if you or your business will reap the benefits from the phase 3 $2T stimulus relief package.
Stimulus Phases Explained:
The US Senate took action and passed the coronavirus stimulus phase 3 package on Wednesday, March 25, 2020 in response to businesses remaining closed and consumers being laid off or furloughed from work. Phase 3 is designed to help American workers, small businesses, and hospitals. Here you will find each phase of the coronavirus stimulus package explained.
Phase 1 Stimulus
On Friday, March 6, 2020 the Phase 1 stimulus bill passed. Awarding $8.3 billion towards the research and development of a coronavirus vaccine and test kit.
Phase 2 Stimulus
On Wednesday, March 18, 2020 the phase 2 stimulus bill passed. Awarding $104 billion to provide financial relief to state governments by increasing the federal matching rate for Medicaid payments, cover free testing for the uninsured, paid emergency sick leave, state unemployment insurance aid, and food assistance.
Phase 3 Stimulus
On Wednesday, March 25, 2020 the phase 3 stimulus bill passed. Awarding $2 trillion to american workers, the unemployed, small businesses, hospitals, and more. The outline of phase 3 is summarized below.
- Direct check payments of $1,200 to individuals making up to $75,000, or $2,400 for couples making up to $150,000. Each dependent child increases the amount by an additional $500. The payment amount decreases for individuals with incomes over $75,000, and payments cut off for those above $99,000. Payment is based on 2019 income, unless 2019 taxes have yet to be filed then 2018 tax returns will be used.
- Everyone collecting unemployment will receive an additional $600 per week and provides laid-off workers their full pay for four months. Eligibility is extended to independent contractors and the self-employed.
- $367 billion in loans for small businesses. Small businesses will be eligible to receive loans capped at 2.5 times their monthly payroll expenses, including expected tips for tipped workers but excluding employees earning more than six figures. Importantly, the balance of these loans would be completely forgiven if a business maintains salary and benefits for its workforce, meaning that these payments are more likely to function as direct subsidies.
- $150 billion for state and local governments to supplement their budgets and prevent the reduction of essential services.
- $130 billion for hospitals.
- $500 billion in loans for larger industries, including $25 billion for passenger airlines; $4 billion for carriers; $3 billion for aviation contractors and $17 billion for “businesses critical to maintaining national security.
- Creation of an oversight board and inspector general to oversee loans to large companies.
- Measure prohibiting companies owned by President Trump and his family from receiving federal relief.
- $25 million for the John F. Kennedy Center for the Performing Arts.
- $400 million for election security grants.
COVID-19 Updates with Profiles
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