The Covid-19 pandemic caused over 22 million Americans to lose their jobs between March and April 2020.
As a result, the U.S. unemployment rate skyrocketed to 14.7%, which is the highest level of unemployment seen since the 1930s (back during the Great Depression).
It should come as no surprise then that millions of people are falling behind on their rent or mortgage payments. In fact, a recent study shows that 30% of people didn’t pay their June 2020 rent payments on time.
Fortunately, the U.S. government has expanded the amount of money it’s handing out to people that need it. Keep reading to learn about what aid programs you might qualify for during the pandemic.
COVID-19 Aid Programs
1. Coronavirus Aid, Relief, and Economic Security ACT (CARES)
By far, the largest aid package that the government has put together so far is the CARES Act. The CARES Act was passed by Congress in March, 2020, and includes over $2 trillion in funding. The goal of the act is to directly support all families and businesses that have been impacted by COVID-19.
Here is a quick summary of what the CARES Act includes:
Economic Impact Payments (EIP) are direct payments to every American taxpayer from the Internal Revenue Service (IRS). Adults can receive up to $1,200, and families can receive $500 for each child, up to a total of $3,400 per household. The best part is that these payments are tax-free, and don’t have to be paid back.
EIPs are linked to your Social Security number. If you filed taxes in 2019, you should automatically get a check or direct deposit. For the full details of how the payment works, visit this official page from the IRS.
2. Economic Injury Disaster Loans (EIDL)
EIDLs are low-interest, government-backed loans for small businesses and nonprofits that have been affected by COVID-19. Visit this link from the U.S. Small Business Administration to learn how to apply.
3. Student Loan Forbearance
The CARES act also suspends automatic payments for all federal student loan borrowers until September 20, 2020. This means that if you have a government-backed student loan, you won’t have to make payments on it, if you don’t want to. This U.S. Department of Education website explains the full details of the student loan forbearance program.
4. Extended Unemployment Benefits
Unemployment benefits are also much better thanks to the CARES Act. The amount of money you get, and how long you get it for depends on which state you live in (just like always). But in most cases, the CARES Act enables states to both pay you more money, and for a longer period of time. Learn how to apply in your state.
The Future is Uncertain
If one thing’s for sure, it’s that no one knows what’s to come down the road. At the time of this writing, the U.S. government is still in a gridlock and is trying to decide on what the next round of COVID-19 stimulus relief will look like.
At the same time, it’s unclear whether the pandemic will get worse, or better, in the weeks and months ahead.
Stay safe and try to save your money wherever you can because no one knows what lies ahead.
