NAJIT is aware of the uncertain situation so many of our members find themselves in as a result of the economic constraints brought about by the COVID-19 pandemic, and will disseminate any helpful information as it becomes known. In this spirit, here are a few of the pertinent provisions of the CARES Act (COVID-19 stimulus) along with additional resources to help you navigate this new legislation.
- Checks to Individuals. The bill provides for direct payments of $1,200 to adults and $500 per child to American households, structured as tax refunds to allow the Internal Revenue Service to distribute the funds quickly. Payments phase out for any individual whose adjusted gross income is more than $75,000.
- Unemployed Workers. The bill extends the duration of jobless beneﬁts to 39 weeks from 26 available in most states, and includes a $600-a-week increase for the ﬁrst four months, with the bonus payment available through July 31. These beneﬁts would be extended to contract workers, freelancers and other nontraditional workers, who lack beneﬁts in some states.
- Gig workers and freelancers. The bill expands some beneﬁts and grants to independent contractors that normally go only to employees or small businesses. For example, it extends the unemployment beneﬁts mentioned above to self-employed workers, including independent contractors, freelancers and other nontraditional workers who are unemployed, partially unemployed or unable to work because of COVID-19. Independent contractors can apply for the $10 billion set aside for emergency EIDL—economic injury disaster loan—funds, which are normally available only to a narrower category of small businesses.
- Paycheck Protection Loans. Independent Contractors are encouraged to look into the rules governing paycheck protection loans which would function more like grants, in place of unemployment benefits.These are being administered through SBA (Small Business Administration) channels. As NAJIT receives more information, this will be shared with members.
- Student Loan Payments. The Department of Education would suspend payments on student loan without penalty through September 30.
CARES Act (COVID-19) Resources: