Federal checks worth some $24 million could be coming soon to Marion County residents.
Small businesses would also be eligible for loans and grants as part of the $2,000,000,000,000 federal coronavirus stimulus package.
A U.S. Senate bill passed 96-0 on Wednesday would provide a $1,200 cash payment per American adult with income up to $75,000 ($2,400 for a married couple filing jointly up to $150,000 income). Families would also get $500 per child.
The U.S. House of Representatives was expected to pass the bill Friday, and President Trump has indicated he will immediately sign it into law.
Based on 2018 census estimates, that would mean the amount coming into Marion County stands to be:
l $21.6 million for eligible adults (18,055 eligible adults at $1,200 each)
l $2.7 million for children (5,423 eligible children at $500 each)
Those estimates are based on 95% of Marion County households earning less than the threshold of $150,000 per year, according to census data available on statisticalatlas.com.
The goal is to bring back the economy from widespread government-recommended shutdowns of public life in an effort to control spread of COVID-19. Some businesses have temporarily closed in Columbia because traffic dried up as people practiced “social distancing,” and many others have restricted operations, such as only doing business via drive through or remote communication.
Individual Payments
The C-P reviewed the 880-page Senate bill for details about the individual stimulus payments.
They will come in the form of an income tax credit, and the bill states that the payments shall be made “as rapidly as possible.” Treasury Sectary Steven Mnuchin has said the IRS could start issuing payments within three weeks, the Wall Street Journal reported.
The funds will be disbursed electronically to a bank that taxpayers authorized for a refund of their income taxes in 2018 or 2019. Taxpayers with direct-deposit information on file with the IRS will receive payments faster than those who will get paper checks.
The income thresholds will be based on 2019 tax returns, if they’ve already been filed, and 2018 tax returns if 2019 has not been filed yet.
Households who earned more than the threshold could still receive a lesser check, with payments stopping for individuals making $99,000 or more and married couples making more than $198,000.
Notice will be sent by mail to the taxpayer’s last known address that the money has been deposited into their account. The notice will indicate the method by which such payment was made, the amount and a phone number for the appropriate point of contact at the Internal Revenue Service to report any failure to receive such payment.
The money is available for all citizens but not “nonresident aliens.”
Small Business Help
The federal plan also allocates $500 billion in loans to small businesses. Those loans will turn into grants, which don’t have to be repaid, if certain conditions are met.
The National Newspaper Association, in a briefing to its members this week, explained the details of the program: “Loans will come from SBA lenders. Businesses with fewer than 500 employees that are not disqualified for other reasons (like previous defaulted SBA loans) may apply for a loan up to 2.5 times their average monthly payroll. Interest rates will be under 2% and no payments will be due for six months.
“Businesses must certify that they will use the money for payroll and that, within four months of the onset of the public health emergency (will vary by state and locale), they will retain 90% (with full salary and benefits) of their workforce that existed as of Feb 1, 2020. This retention may include recalling furloughed workers. This certification must be for retention through Sept 30, 2020. Money cannot be used to pay dividends (and, presumably, owners’ distributions.) There will be certain limits on high-end executive pay.
“These are the loans that are available to be forgiven (i.e., converted to grants) upon fulfillment of the obligations.”
Emergency Loans Available Now
Separate from the stimulus package, the U.S. Small Business Administration is already offering “economic injury loans” to help small businesses pay their bills.
The amounts are up to $2 million and the terms up to 30 years. Interest rates are as low as 3.75% for traditional businesses and 2.75% for nonprofits. The first payment is due 11 months after approval.
“I want to emphasize applying for the loans. There are no closing costs ... and if the business later determines they don’t need the money, they’re not obligated to take it,” Sherrod Schuler, a public affairs specialist with the Small Business Administration, said in a phone interview with the C-P Wednesday.
He said the SBA is more lenient than a traditional bank because the loans are designed to help a business recover.
Applications can be filed at sba.gov/disaster. Questions can be answered by calling (800) 659-2955.
Schuler said usually specific disaster areas are declared where the loans are available, but in this case it’s opened up to essentially the entire country, as long as the governor of that state has declared an emergency. He said there’s been a “great increase” in applications.
The turnaround time is typically two weeks, but Schuler said they’re emphasizing getting it sooner in this case and in some situations businesses are already starting to get funds.
