Congress Approves $2.2 Trillion Economic Stimulus Package This information is provided by NAHB, use the link below to view more resources https://www.nahb.org/Advocacy/Industry-Issues/Emergency-Preparedness-and-Response/Coronavirus-Preparedness Congress has approved a $2.2 trillion economic stimulus package in response to the coronavirus pandemic that has wreaked havoc on the U.S. economy. The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes several provisions to help small businesses and those engaged in the residential construction sector. The Senate passed the bill on March 25. The House approved the legislation on March 27 and President Trump signed the economic stimulus bill later that day. At the top level, the CARES Act will: • Make direct payments of $1,200 to most individuals earning up to $75,000, or $2,400 for couples earning up to $150,000. The amount decreases for individuals making more than $75,000 and payments cut off for those earning above $99,000. • Provide an additional $367 billion in loans for small businesses to help deal with payroll issues. • Create a $500 billion lending program for larger companies, including airlines, as well as states and cities. • Establish an oversight board and inspector general to oversee loans to large companies. • Provide $130 billion for hospitals. • Earmark $150 billion for state and local governments. Here are more details how this aid package will help members of the small business community and housing sector: Small Business Small business owners in all U.S. states and territories are currently eligible to apply for low-interest Economic Injury Disaster Loans (EIDL) of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue due to the COVID-19 response. Applicants may request an advance in the amount of $10,000 to be delivered within three days of the request. This advance must be used to: 1. Provide sick leave to employees unable to work due to the effects of COVID-19; 2. Maintain payroll to retain employees; 3. Cover increased costs of materials due to interrupted supply chains; 4. Make rent or mortgage payments; or 5. Repay other obligations that cannot be met due to revenue losses. An applicant will not be required to repay this advance if it is used for these purposes, even if they are subsequently denied a loan under the EIDL program. Qualified businesses can apply online at disasterloan.sba.gov/ela/. For application assistance, please contact an SBA customer service representative at 1-800-659-2955 or email disastercustomerservice@sba.gov. Small and medium sized businesses (with fewer than 500 employees) are also eligible to apply for SBA’s expanded 7 (a) loan program. This program is not provided through SBA directly, so the first step to qualifying for a 7(a) loan is to find an SBA approved lender in your community. Your lender can guide you through the application process and determine which 7(a) loan product will work best for your business. Allowable uses of these loans include: 1. Payroll costs; 2. Certain costs related to the continuation of group health care benefits; 3. Employee salaries (including commissions); 4. Mortgage, rent and utilities payments; and 5. Interest on any other debt obligations that were incurred before the covered period. A loan recipient may be eligible for forgiveness on a covered loan used for costs including payroll, mortgage and rent obligations, and utility payments. If you have questions about the 7(a) loan program, you can contact the SBA at 1-877-475-2435 or email 7aquestions@sba.gov. If you are having issues with the EIDL or 7(a) loan application process or if your application was denied, please contact Alex Strong at NAHB at 1-800-368-5242 x8279 or Heather Voorman at 1800-368-5242 x8425. Tax The CARES Act provides a number of tax provisions aimed at providing financial relief to most American taxpayers as well as new tools to aid struggling businesses. The centerpiece of the bill is a $1,200 “recovery rebate” that will be distributed to all eligible Americans. But the bill also includes needed tax relief to small businesses, including an employee retention tax credit; the ability to delay certain payroll tax payments; providing advance refunds of the new sick and medical leave tax credits; and relaxing rules related to net operating losses. More detail is provided on page 4 ***NOTE: NAHB is providing this information for general information only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such.*** Page 3
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