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The Coronavirus Aid, Relief and Economic Security Act (CARES Act)

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on Friday, March 27, 2020, and is the most massive economic relief bill in U.S. History.  It will allocate $2.2 trillion in health care relief and emergency assistance for individuals, families, and businesses affected by the COVID-19 pandemic crisis.

opens in a new windowCoronavirus Aid, Relief, and Economic Security Act (CARES Act)

The CARES Act was designed to distribute capital quickly and broadly.  The Paycheck Protection Program (PPP) prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.  Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. opens in a new window(1)

Below you will find links to additional information, along with a few attachments, that may help covered businesses access the other resources available through the recently passed stimulus package:

Guidance from the U.S. Senate Committee on Small Business & Entrepreneurship

Guidance from the U.S. Chamber of Commerce

Guidance from the US Department of Treasury

The CARES Act also provides support for opens in a new windowpublic transportationopens WORD file .  To find out more information, please visit the opens in a new windowFederal Transit Administration COVID-19opens WORD file landing page.

Individuals & Families

For individuals and families, $250 billion has been allocated for direct payments in the form of recovery rebates to help soften the economic challenges many are currently facing.  Recovery rebates are refundable tax credits that will be applied to 2020 tax returns but will be advanced to taxpayers now based on their 2019 or 2018 adjusted income.

How much of a rebate will I receive?

Individuals with a Social Security Number (SSN) and who are not dependents may receive $1,200 (single filers and heads of household) or $2,400 (joint filers), with an additional rebate of $500 per qualifying child, if they have adjusted gross income (AGI) under $75,000 (single), $150,000 (joint), or $112,500 (heads of household) using 2019 tax return information. (The IRS will use 2018 tax return information if the taxpayer has not yet filed for 2019.) The rebate phases out at $50 for every $1,000 of income earned above those thresholds. opens in a new window(2)

CARES Act Rebate chart

How do I get my rebate?

For most Americans, no action is required. The IRS will use data from the most current tax returns or Social Security data to provide a rebate to Americans either via direct deposit (if such information is available) or through a paper check in the mail to the last address on file.

U.S. Treasury Secretary Steven Mnuchin said he hopes to distribute rebates to taxpayers who e-filed with direct deposit banking information in three weeks. Taxpayers receiving rebate checks may have to wait six to eight weeks to receive a paper check in the mail.

Treasury will be developing a web-based portal for individuals to provide their banking information to the IRS online. Taxpayers will be able to receive payments immediately as opposed to checks in the mail. opens in a new window(3)

Additional information regarding Rebate Relief, Social Security, Payroll Tax Changes, and Unemployment concerning the CARES Act can be found here:

opens in a new windowTax Foundation – FAQ on Federal Cornovirus Relief Bill (CARES Act).

Provisions of the CARES Act also address healthcare needs, expand individual access to retirement accounts, support education, and provide state and local governments with additional funds to help mitigate the on-going COVID-19 crisis.

Natural Disasters Set Records in 2017

In our attempt to help businesses and people be the very best they can be, we strive to share useful information so proper planning can take place. I recently read a good article from “ProgramBusiness.com” that I believe all individuals that buy Property Insurance should be aware of.

Here are a few statistics as quoted in the article:

  • “Total global economic losses from natural and man-made disaster in 2017 were USD 337 billion, almost double the losses in 2016 and the second highest on record”
  • “Global insured losses from catastrophe events, meanwhile, were USD 144 billion, the highest-ever recorded in a single year”
  • “Major wildfires across the globe resulted in combined insurance losses of USD 14 billion, the highest ever”

So, with all that said, what are the main take-away points you should be aware of? I believe you need to know the following:

  1. Excessive losses will have an impact on “Reinsurance” rates and terms that virtually every insurance company must purchase. This will likely have a trickle down impact on every insurance buyer.
  2. Terms and Premiums for Property Insurance (especially property along the US coasts and in heavy tornado/hail storm states) will probably be tougher for the remainder of 2018 and 2019.
  3. To counter these concerns, it becomes even more important to focus on internal property risk management techniques and strategies and work with an insurance broker who understands how to create a “feeding frenzy” for your business – even in a tough marketplace.

Please call or email me for more details.  For the complete article, please visit opens in a new windowProgramBusiness.com.

Rob Gion, Jr. CIC, CRM
President
Gion Insurance Group