Congress passed the $2 trillion
CARES Act
on March 27, 2020 with overwhelming bipartisan support.
Here are four provisions that may impact you, and that you can share with your current, former and potential clients:
A borrower with a federally backed loan can request forbearance through the loan servicer
during this designated disaster period - which began on March 13 - for a period of up to 180 days at the request of the borrower.
No fees, penalties or interest beyond the amount scheduled can be accrued on the borrower’s account. The servicer of any Federally backed loan also cannot initiate the foreclosure process for not less than a 60-day period beginning on March 18.
Credit protections
– the bill amends the Fair Credit and Reporting Act to allow more leeway for consumers that come to an agreement with lenders on deferring, making partial payments, modifying a loan, forbearing delinquent amount and utilizing any other relief.
$1,200 per Adult/$500 per Child
– REALTORS® and their families and their clients, as well as most Americans, with incomes below the thresholds will receive cash payments from the federal government in the amount of $1,200 per adult plus $500 for each child under the age of 17. These payments should be sent out starting in April.
Employee Retention Tax Credit
– If your business has 100 or fewer employees, you can claim a refundable employee retention tax credit against payroll taxes of up to $5,000 per employee under certain circumstances.
As more guidance is released by the Administration on how these new programs will be implemented, updates will be provided.
