One Page List of CARES Act Provisions That Could Affect You

The CARES Act has a ton of provisions for individuals and businesses, and it can be a bit overwhelming trying to sort through everything to see how you could benefit. I’ve compiled a list of provisions in this bill that could directly affect you, whether you’re a student, employee, or business owner. As always, feel free to reach out to us if you have any questions involving this or anything else real estate related!

You can read a full list of provisions with details put together by the National Association of Realtors here: https://bit.ly/2wrnEQb

Housing:

• Borrowers of government-backed mortgages (Fannie Mae, Freddie Mac, HUD, VA and USDA) can request up to 360-day payment forbearance without proof of hardship, with no additional fees, interest, or penalties.
• Owners of multifamily properties who were current on their mortgage payments as of February 1, 2020, and have federally insured, assisted, or supplemented loan, may request forbearance for 30 days due to financial hardship.
• Moratorium on eviction filings, or fees or penalties for tenants for nonpayment of rent for 120 days on properties insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, covered by the Violence Against Women Act of 1994.

Student loans:

• CARES Act suspends all payment due on federal student loans for 6 months. Interest shall not accrue on these during this forbearance.

SBA Loans:

• Businesses with 500 employees or fewer, including sole proprietors, independent contractors, and cooperatives are eligible for Economic Injury Disaster Loans (EIDL) during the covered period of January 31st to December 31, 2020 in response to COVID-19. The business must show hardship due to the Coronavirus.
• The SBA must waive any personal guarantee on loan advances or loans under $200,000.
• EIDLs may be used for the following: Paid sick leave to employees impacted by COVID-19, payroll, rent/mortgage payments, debt obligations due to loss revenues, increased costs for due to chain supply disruptions and materials.
• Businesses with 500 employees or fewer, including sole proprietors and independent contractors, are eligible for SBA 7(a) loans in response to COVID-19 covering expenses for the period of February 15, 2020 through June 30, 2020. 7(a) loans can be used for: Payroll, including for independent contractors and employees who work on commission; Rent/Mortgage interest; Utilities.

Tax:

• Those with retirement accounts, including IRAs, can take early withdrawals of up to $100,000 from those accounts without having to pay the 10% early-withdrawal penalty.
• Those aged 70 1/2 or older do not have to worry about taking required minimum distributions from retirement plans in 2020, or to pay the taxes on those distributions.
• If your business has 100 or fewer employees, you can claim a refundable employee retention tax credit against payroll taxes of up to $5,000 per employee under certain circumstances.
• Businesses with losses can carry back net operating losses (NOLs) to prior taxable years and get refunds of earlier taxes paid.

Unemployment:

• Self-employed individuals, independent contractors, and other individuals who are unable to work as a direct result of COVID-19 public health emergency, and would not qualify for regular unemployment benefits under state law may be eligible to receive “Pandemic Unemployment Assistance.”