The money has already been promised by the government. The news media made a big deal about it and now everyone is expecting it. What you and everyone else wants to know is… so when do I get my check? Will you get one? Employers are also looking for the money because they want to help their employees – who they had to tell “go home.”
Loans for Small Businesses
Friday was the first day that small businesses could apply for the Paycheck Protection Program (PPP) loan. This loan is to be used by employers to be able to keep their employees on the payroll. Each loan was supposed to be approved quickly – possibly even the same day. Under the Stimulus Package rules, small businesses can apply for as many as eight different types of financial help. The other seven types include:
- Stimulus Checks
- Economic Injury Disaster Loans (EIDL)
- SBA Loan Forbearance
- Increased Access to Retirement Accounts
- Paid Sick Leave
- Family Medical Leave (FMLA).
When many small business owners went to look online to find out more details, they found a surprise. It was not going to be easy to get the loan that they thought they were promised. Some large lenders – Bank of America and JP Morgan – both limited the applicants at their banks to people that already had active loans or credit cards with their bank. Wells Fargo has completely stopped after only two days of receiving applications.
This policy could leave many small businesses out of the loop if they currently do not have any business loans. They will need to go to their local bank and apply – if they make loans through the SBA. The loan is not based on your ability to repay – because it is a “forgivable” loan.
Individuals will get their stimulus checks later – but not much later. The amount of money you will receive will be based on your income. If you have already filed for 2019 taxes, it will be based on those figures – line 8b of your 1040 tax form. If you have not yet filed your 2019 taxes, it will be based on your income declared in your 2018 1040 tax forms – line 7.
Individuals that make less than $75,000 AGI will get $1,200. Any income above that figure will decrease the check amount incrementally up to $99,000. Anyone making more than that will not be eligible to receive any stimulus money. A spouse will get the same amount of money if taxes were filed separately, or the combined amount will be sent to the bank if filing jointly. An additional $500 will be given for children that are 16 or younger. Children that are older than that are likely to be ineligible to receive anything.
Payments will be placed directly into your bank account if the IRS has your account number on file. If not, the IRS will soon be setting up a website where the account information can be submitted.
For people that do not normally file taxes each year, it will be necessary to send in a short tax form if you want to be paid. If this includes you, watch for the IRS to reveal how to file a simple form to get your money.
When Payments Will Be Sent
If you do not respond on time with bank account information, the check will be mailed to the address on your tax form. Checks will start to be mailed on May 4th, the IRS says, and they will start with the people that have the lowest income. The legislation states that the IRS must send out the checks before the end of the year – so it may take longer if the IRS does not have your bank info.
People that are receiving social security will automatically have their payments sent directly to their bank account. The Treasury Secretary – Steven Mnuchin – said that most people can expect to receive payments in their bank accounts by April 17th.