I have spent the last 2 hours reading the preliminary version of the CARES Act (The Senate stimulus bill)
If you have any questions, I'm happy to provide insight. Based on questions asked so far here's what I can see so far:
- The direct payments will be made based on 2019 AGI if filed, 2018 AGI if not.
- The chart shared earlier appears to be correct, the "complete phase out" will vary greatly depending on how many qualifying children you have.
- It will be $1,200 per adult, and $500 per child. You would then calculate your total amount and IF your AGI exceeds the limitations ($75,000-single; $112,500-Head of House; $150,000-Married Joint) then you will be phased out by 5% of every dollar over this limits. (So again the chart would show where your phaseout might be...or you can do math to figure it out yourself)
There is a tremendous amount of assistance on the way for small businesses. This was truly my reason for reading the bill and if anybody here owns a small business, has a current SBA loan, has any business debt, and especially if you have employees - you will want to watch this closely! There is some great assistance coming here for small businesses! Some high level highlights:
- The SBA will make your next 6 payments on qualifying existing SBA loans (not conventional loans)
- A new SBA lending program will go through local banks
- These loans will be forgive-able if used for things like payroll, mortgage pmts, rent, utilities IF you keep your people employed
- They will be equaly to 2.5x your average monthly payroll over the prior year (or a more relavant calculation if you are a more seasonal business).