Coronavirus Update: March 30, 2020
On Friday afternoon, I was at the Capitol to ensure the House of Representatives was able to pass desperately needed stimulus legislation. Our country is battling through an historic crisis and the federal government must continue to respond quickly to our community’s needs.
I have received your letters and emails detailing exactly where help is needed. I wanted to share with you some of the specifics of the bipartisan package, H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the bipartisan package that was signed into law this weekend.
- $350 billion for Small Businesses: Through the Paycheck Protection Program, businesses with fewer than 500 employees, and select types of businesses with under 1,500 employees, are eligible for emergency loans from lenders approved by the Small Business Administration (SBA). Loans are capped at $10 million with an interest rate no higher than 4%. If an employer uses the loan to pay their employees at normal rates for 8 weeks, some, or all, of the loan can be forgiven.
- $150 billion for State and Local Coronavirus Relief Fund: The Fund supports state-level responses to the emergency, bolstering ongoing efforts. New Jersey is estimated to receive more than $3.4 billion in direct aid from the Fund.
- Up to $1,200 Direct Payments for Low- and Middle-Income Americans: One-time direct cash payments of $1,200 per adult and $500 per child were included in the legislation. This benefit will start to phase out at an annual income of $75,000 for individuals and $150,000 for a household.
- $200 Billion for Hospitals and Health Care Workers: Funding is provided for hospitals, health systems, and health research to fight the pandemic, including funding to obtain the personal protective equipment that brave frontline workers need immediately.
- Expanded Additional Unemployment Benefits: The federal government will provide an additional $600 per week in unemployment benefits for the next four months and expand eligibility to include people who are self-employed or work in the gig economy.
- Technical Correction to Qualified Improvement Property (QIP) Deduction: The CARES Act provides a technical correction establishing a 15-year depreciable life for QIP and allowing business owners to expense the full amount in the year the purchase was incurred. This new standard is retroactive to January 1, 2018, allowing business owners to amend both 2018 and 2019 tax returns.
If you have questions or need assistance please call my Washington, D.C. office at (202)-225-7919 and follow instructions to be connected to my staff or send an email to NJ8inquiries@mail.house.gov. Together we can get through this.