Congress passed the $1.9 trillion American Rescue Plan Act in March 2021, following up on COVID-19 relief actions taken in late December 2020 ($900 billion) and March 2020 (the $3 trillion CARES Act). By 2022, most of the focus of federal COVID-19 help had shifted to vaccinations, testing and getting schools and businesses back open. Critney managed to secure a $8,500 PPP loan in 2020 and another for about $3,200 in 2021. Some later 2021 applicants were able to get more than $10,000 because of a rule change to the program in March, but she says the funding she got made a difference regardless. Nearly 40% of PPP loans made by CDFIs were in low- and moderate-income areas compared to the program’s average of 28%, the SBA reported in 2021. In 2020, CDFIs originated 16% of all PPP loans in the city and its metro area, with their share rising to nearly 40% in the program’s later phase. It later emerged that some recipients of those initial loans weren’t exactly among the most needy.
- The Small Business Administration offers programs that can help your business if it’s been affected by the coronavirus pandemic.
- A number of the biggest banks, including Wells Fargo and Citi, said they would not apply stimulus funds toward any negative balances in customer accounts.
- The federal foreclosure moratorium that protected homeowners during COVID-19 is also over, ending July 31, 2021, and the eviction moratorium that protected renters ended in September 2021.
- Governor Janet Mills announced today that 2,919 Maine small businesses and nonprofit organizations will soon receive a one-time electric utility account credit of more than $2,000 to provide relief from increased energy costs.
- This relief is the product of legislation sponsored by Senate President Troy Jackson, D-Aroostook, and signed into law by Governor Mills.
- In contrast, large commercial banks (those with $10 billion or more in domestic assets) reported such data on fewer than 40% of their PPP loans in 2021.
Student debt refers to loans used to pay for college tuition that are due after the student graduates or leaves school. If you take advantage of COVID-19 loan deferral, be sure to ask whether interest will continue to accrue during that period and what charges you could be responsible for when payments resume. As a result, the GAO has recommended several measures for agencies to prevent pandemic program fraud in the future, including better reporting on their fraud risk management efforts.
See the impact MEDC’s COVID-19 response programs are having on the state’s economic recovery. Authorizes emergency relief to businesses and community projects that have previously received grants, loans, or other forms of economic assistance from the Michigan Strategic Fund. These programs, which work together, are the Pandemic Unemployment Compensation , Pandemic Emergency Unemployment Compensation , and Pandemic Unemployment Assistance .
In August 2022, the White House announced plans to provide targeted student debt relief to borrowers with loans held by the Department of Education. Customers may be eligible for fee waivers on bank accounts, interest rate reductions on credit cards, and deferred payments on loans. If you can afford to resume your monthly mortgage payment you may be eligible for a payment deferral which puts your missed mortgage payments and puts them into a payment due at the sale, or refinancing of the home, or the end of the loan. As a financial regulator, FHFA is not able to offer direct assistance or field individual inquiries from renters, landlords, or borrowers. FHFA encourages anyone facing economic hardship as a result of COVID-19 to immediately contact their landlord or mortgage servicer , to see if they qualify for payment relief. Loans made under the program may be forgiven for the total amount that the borrower spent on payroll (excluding annualized compensation over $100,000) mortgage interest, rent, and utilities in the 24 weeks following their loan’s origination. Employers are additionally allowed to make extra payments to tipped employees to account for their loss of tips.
The telephone number and mailing address of your mortgage servicer should be listed on your monthly mortgage statement. The SBA provides information about state disaster assistance in all 50 states, the District of Columbia, and U.S. territories. These laws include several tax incentives that may be of value to ASHA members in small business attempting to navigate the COVID-19 pandemic. The amount of forgiveness is reduced proportionally to any reduction in the borrower’s workforce, as well as any reduction in employee salary beyond 25%. Borrowers that have already taken action to reduce their workforce and eliminate any reduction in staff or salary through this program will not be penalized.
Forgiven expenses are generally restricted to obligations undertaken before February 15, 2020. The program provides a ‘First Draw’ loan equal to 10 weeks of a company’s payroll, up to $10 million. This may be used pandemic relief loans to pay the payroll, rent, and utilities that allow a small business to keep its doors open. A ‘second draw’ loan of up to $2 million is available for businesses that have used funds from a ‘first draw’ loan.
So customers who received stimulus payments via direct deposit while their accounts were overdrawn were not penalized. The Michigan Stages Survival grant program will provide grants to eligible live music and entertainment venues that have realized a significant financial hardship as a result of the COVID-19 emergency.