The $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act will place about $300 billion directly into Americans’ pockets, provide $377 billion worth of assistance to small businesses, and both expand and extend unemployment benefits, among other outcomes.

While details on the rollout of the aid are still being determined in some cases, here’s an early look at how individuals and businesses can obtain relief funding.

Direct payments to individuals and families

The CARES Act provides $1,200 in direct government payments to individuals making up to $75,000, and $2,400 to married households making up to $150,000, with an additional $500 cash payment per child. It applies to people who obtain their incomes through Social Security and benefit programs, and also to people who make zero income.

The caps apply to filers’ adjusted gross income, a figure derived by subtracting certain deductible payments made during the year (for student loan interest, contributions to individual retirement accounts or health savings accounts, moving expenses for activity military members, health insurance premiums for self-employed people, and more) from gross income (all of the money that comes in, including wages, dividends, capital gains, business income, alimony, etc.).

The value of the payments decreases after the income caps of $75,000 (individual) and $150,000 (married), with the payment amount reduced by $5 for every $100 of income above those levels. It phases out completely for individuals earning more than $99,000 and for joint filers with no children earning more than $198,000.

The IRS will use 2018 and 2019 tax returns (whichever is the most recent on file) to determine levels of payments. Direct deposit information and addresses on those returns will be used to provide electronic payment or checks.

For those who haven’t filed 2018 or 2019 returns, the best bet is to file a 2019 return immediately, which can be done online at irs.gov/filing/free-file-do-your-federal-taxes-for-free.

Unemployment compensation

The relief package extends unemployment benefits to independent contractors for the first time. Those covered include gig economy workers, freelancers and others who are self-employed. Additionally, workers who quit their job for coronavirus-related reasons can qualify for benefits, which applies not only to those who contracted the virus but those who were forced to leave work to care for family members and did not have leave benefits.

Lawmakers extended state-level unemployment insurance by 13 weeks and added a $600 weekly payout to the state-level compensation.

To file for unemployment insurance in Nevada, visit the Nevada Department of Employment, Training and Rehabilitation at ui.nv.gov, or phone its unemployment hotline at 702-486-3293.

Be aware, however, that the office has been inundated with applications in recent weeks—a record 98,298 for the week ending March 21—and officials are asking the public for patience in receiving customer service.

The unemployment office is adding staff to its call centers and is training current employees to contend with a backlog of phone messages and emails, while also trying to streamline the application process through the use of new technology. (The department’s offices are closed.)

But applicants are advised to file online to avoid long waits on the phone. Before logging on, filers should gather several pieces of information, such as:

• Their Social Security number and identification, such as a driver’s license or passport.
  
  
  
  
• Names, addresses, phone number(s) and dates they worked for their previous two employers; and a list of corporate names of all employers for whom they have worked in the past 18 months.
  
  
  
  
• If not a citizen of the United States, their alien registration number and expiration date.
  
  
  
  
• If discharged from the military in the past 18 months, a copy of their DD-214.
  
  
  
  
• For those who have worked for the federal government in the past 18 months, a copy of their SF-8 or SF-50.
  
  
  
  

For businesses and nonprofit organizations

For starters, know the different kinds of assistance available. The list includes:

Economic Injury Disaster Loans

These low-interest loans provide up to $2 million to cover business expenses that could have been met had the coronavirus outbreak not occurred, such as payroll and operating costs. The for-profit interest rate is 3.75%, and the nonprofit rate is 2.75%, amortized up to 30 years. Deferment is automatic and is granted for up to a year, and there are no requirements for collateral. In addition, the CARES Act established a new Economic Injury Emergency Advance program that provides an emergency advance of up to $10,000 to small businesses and private nonprofits within three days of applying for an Emergency Injury Disaster Loan. The advance is deducted from the loan proceeds, but if the loan is declined, the advance does not have to be repaid.

Small Business Debt Relief Program

For six months, the SBA will cover loan payments for recipients of three different kinds of non-disaster SBA loans. The three loans are: 7(a) loans (which provide for a variety of business needs), 504 loans (which are tailored toward expansion and modernization) and microloans (which provide up to $50,000 and are aimed at small-business start-ups). Congress made $17 billion available for the relief program, which applies not only to existing loan holders but to new borrowers who take out loans during a six-month period that started when President Donald Trump signed the coronavirus emergency funding package March 27.

Paycheck Protection Program (PPP) loans

The coronavirus emergency funding package recently approved by Congress includes $349 billion for these loans, which are a version of the SBA’s 7(a) loans. Employers who maintain their payroll at the same level as before the coronavirus outbreak can petition for loan forgiveness. If any portion of the loan is unforgiven, it’s amortized over 10 years at a 4% interest rate. Meanwhile, PPP loans offer a number of attractive features such as no SBA fees, deferrals of six months to a year and no prepayment fees. The loans are retroactive to mid-February and will be available through June 30. As with Economic Injury Disaster Loans, there are no requirements for collateral. Unlike for the other types of loans, however, the rollout for applications has not yet occurred. The Trump administration had said it will be set up April 3.

An employee retention tax credit is available for businesses that are not eligible for the PPP or choose not to participate in it. Any business that has been forced to fully or partially suspend operations, or has seen a significant drop in revenues, is eligible for a 50% credit for wages paid to furloughed or reduced-hour employees. As with the PPP program, the rollout has yet to occur.

How to apply for an Economic Injury Disaster Loan and Economic Injury Emergency Advance

Determine your eligibility

The loans and advances are available to all businesses with 500 employees or fewer, along with independent contractors, cooperatives and employee-owned businesses, 501(c)(3) nonprofit organizations, 501(c)(19) veterans organizations and tribal businesses and nonprofits. In addition, waivers have been granted for businesses and franchise holders with more than 500 employees spread across multiple locations—for example, 2,000 employees working in five different offices.

To start the application process, visit sba.gov/disaster

Make sure to have documentation of your business’s three-year ave\rage annual revenue on hand.

To request an Economic Injury Emergency Advance, first apply for an Economic Injury Disaster Loan and then request the advance within three days, also at sba.gov/disaster.

For questions or assistance on the loans and advance, contact the SBA’s Las Vegas office at 702-388-6611 or email the Nevada SBA district director, Joseph Amato, at [email protected].

To apply for the three loans covered by the Small Business Debt Relief Program:

• For a 7(a) loan, it’s important to determine which of several different versions of loan is best for your business. Information is available by visiting sba.com and doing a keyword search for “types of 7(a) loans.” From there, businesses can apply for a 7(a) loan with a bank or a mission-based lender. SBA offers a free referral service tool called Lender Match, accessible at sba.gov/lendermatch.

• For a 504 loan, applications must be made through a certified development company, a nonprofit corporation that promotes economic development. According to the SBA’s online search tool, the local option is the New Ventures Capital Development Co., 626 S. Ninth St., Las Vegas. Contact information: newventurescdc.com or 702-382-9522.

• Microloans are delivered through mission-based lenders who can also provide business counseling. The SBA lists the regional lender for Nevada as Phoenix-based Prestamos CDFI, which operates a Southern Nevada office at 4070 N. Martin Luther King Blvd., North Las Vegas. Contact information: prestamosloans.org or 702-207-1614.

More information on the PPP

Who’s eligible?

The same as above for Economic Injury Disaster Loans.

How much funding is available?

Up to $10 million. Businesses that were operating as of February 15 and continue to operate through June 30 can receive a maximum amount equal to 250% of their average monthly payroll costs through June 30. Those that were not in business can receive up to the average of their monthly payroll costs between January 1 and February 29.

What can loans be used for?

Employee salaries; payroll costs; costs related to continuation of health care benefits; rent; utilities; and interest on debt obligations incurred before the covered period.

Who will provide PPP loans?

The majority of lenders. Contact your local lender, or go to sba.gov/disaster starting this week for a list of participating lenders. Federal officials are expecting the list of lenders to grow as the funding becomes available, so the list will be updated on an ongoing basis.

What’s the process of obtaining forgiveness?

Businesses must apply through their lender. The application requires documentation verifying the number of employees on payroll and average monthly payroll between February and June last year; documentation verifying payments on mortgage obligations, lease obligations and utilities; and certification that the documentation is accurate.

For more information assistance for businesses, visit the SBA’s Las Nevada office at sba.gov/offices/district/nv/las-vegas, or call the office at 702-388-6611.