The new $900 billion Pandemic Relief Bill will include enhanced unemployment benefits and direct cash payments, which many Americans desperately need as closures and restrictions related to Covid 19 continue.
Although many were hoping for more, as it stands, eligible individuals will receive $600 in direct stimulus payments and families will receive additional funds for children if their adjusted gross incomes do not exceed the threshold.
For the many Americans who are out of work, a $300 weekly federal enhancement of unemployment benefits will be available through mid-March and other pandemic unemployment programs that were set to expire at the end of the year will be extended.
Small businesses that were hit hard during 2020 can look forward to the Paycheck Protection Program reopening with the passage of the new bill. Employers with fewer than 300 employees can apply for a second loan if they experienced [at least] a 25% drop in revenue in the first, second or third quarter of 2020.
For Americans struggling to pay rent, the bill extends until January 31 the eviction protection that was set to expire at the end of the year and provides rental assistance to individuals who lost sources of income during the pandemic.
Emergency relief measures for federal student loans has also been extended through January 31, 2021. After that date, payments and interest on students loans will resume. Borrowers are directed to work with their student loan lenders to enroll in income based repayment plans if they cannot afford to resume payments starting in February.
The economic hardship individuals, families and small businesses experienced in 2020 will undoubtedly carry over into 2021, with many considering bankruptcy protection as a strategy to turn a difficult situation around. If you have questions regarding Chapter 7 or Chapter 13 personal bankruptcy protection, or Chapter 11 business bankruptcy, contact the Peoria bankruptcy law offices of Charles E. Covey for more information today at 309-674-8125.