In wake of COVID-19 — the largest pandemic crisis in 100 years — the United States federal government has recognized the detrimental impact to individuals, businesses, and the overall economy. As a result, we have seen new regulations, and other types of relief, in an effort to support a quick recovery from the crisis. Below are some of the most recent updates.

• On March 25, 2020, the White House and U.S. Senate reached an agreement on a $2 trillion stimulus package — the biggest is our nation’s history. Under the plan, individuals who earn $75,000 in adjusted gross income or less would receive direct payments of $1,200 each, with married couples earning up to $150,000 receiving $2,400 — plus $500 per each child. The payment would scale down as income rises, phasing out entirely at $99,000 for singles and $198,000 for couples without children. In addition, $350 billion would be designated for small business loans, $250 billion for unemployment insurance benefits, and $500 billion assigned to loans for distressed companies. The Senate approved the package this morning with a unanimous 96-0 vote. It is currently pending approval in the House of Representatives, which plans to convene at 9:00 am EST on Friday, March 27th to consider the package.

• On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (FFCRA), which provides relief to employees and small and midsize businesses. The Act provides paid sick leave and expanded the Family and Medical and Leave Act (FMLA) for COVID-19-related reasons. It also provided “eligible employers” with a refundable paid sick leave credit and paid child care leave credit. Eligible employers is defined as businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid FMLA under the Act. Employers are able to claim these credits based on qualifying leave they provide between the effective date (on or around April 3) and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances. Click HERE for more information on these credits.

• The U.S. Small Business Administration has updated its LOAN APPLICATION PORTAL for the stimulus provisions, should they be approved by the House of Representatives. Your business may be eligible to apply for up to $2 million to assist with crisis-related losses. We are happy to assist you with the application process.

PRICE KONG’S tax, business advisory, and consulting professions are here to guide you through this turbulent time. We can help you develop and document a BUSINESS DISASTER SCENARIO PLAN, adjust cash flows and projections, and develop and implement cost containment measures.

We are all in this together. As our clients and friends, we not only want to help you survive, but thrive. Please contact us with any questions you may have. You can also access COVID-19-related updates on our BLOG.