IRS Sending Out New Coronavirus Stimulus Debit Cards Instead of Checks

by NFS | Jun 1, 2020 | Archives, Blog Posts, COVID

Act by Wednesday 05/13 for chance to get quicker Economic Impact Payment; timeline for payments continues to accelerate

by NFS | May 11, 2020 | Archives, Blog Posts, COVID

Massachusetts Announces Implementation Of CARES Act Unemployment Benefits For Self-Employed, Gig Economy And Other Workers

by NFS | Apr 20, 2020 | Archives, Blog Posts, COVID

BOSTON – The Baker-Polito Administration announced today that Massachusetts residents who are not eligible for regular unemployment benefits can now apply online for the new Pandemic Unemployment Assistance (PUA) program.

The new federal PUA program provides up to 39 weeks of unemployment benefits who are unable to work because of a COVID-19-related reason but are not eligible for regular or extended unemployment benefits. This includes self-employed workers, independent contractors, gig economy workers, and those with limited work history. Applicants can learn more and apply at www.mass.gov/pua.

“As a Commonwealth, we are committed to doing everything in our power, and moving as urgently as possible to get workers impacted by the COVID-19 crisis the benefits they deserve,” said Governor Charlie Baker. “With the implementation of this new federal benefit program, we can better support workers not normally covered by the unemployment system like those who are self-employed or work in the gig economy.”

“The COVID-19 pandemic has upended the lives of workers across the Commonwealth, and our Administration is doing everything we can to help,” said Lt. Governor Karyn Polito. “The implementation of the Pandemic Unemployment Assistance program in Massachusetts is another important step in our efforts to help those who are economically disrupted by this virus.”

To be eligible for this new program, individuals must provide self-certification that they are otherwise able and available to work but are prevented from doing so by circumstances relating to COVID-19, including their own illness or that of a family member.

Those able to telework with pay and individuals receiving paid sick or other leave will not qualify for PUA. Individuals receiving paid sick leave or other paid leave benefits for less than their customary work week, however, may still be eligible for PUA. Also, those working fewer hours, resulting in a loss of income due to COVID-19, who are not eligible for regular unemployment benefits may be eligible for PUA.

“It is vital that our workforce gets the resources and help they need during this critical time,” said Secretary of Labor and Workforce Development Rosalin Acosta. “I’m proud of everything our team is doing to rapidly implement new programs, and ensure that as many eligible workers as possible get some relief.”

The federal CARES Act signed into law on March 27 created PUA, as well as another temporary federal program called Federal Pandemic Unemployment Compensation (FPUC) that provides an additional $600 weekly benefit for those receiving unemployment benefits or PUA. FPUC provides that additional benefit through July 25, 2020. The Commonwealth announced implementation of FPUC earlier this month.

All approved PUA applications will initially receive the minimum weekly benefit amount, plus the additional $600 FPUC weekly benefit. Once a worker’s wages are verified, weekly benefit amounts may increase. The amount of PUA benefits received is based on the individual’s reported previous income. PUA benefits may not be more than the state’s maximum weekly benefit rate for regular unemployment, which is $823 in Massachusetts.

Weekly benefits, including any increase to your weekly benefit amount, will be retroactive to January 27, 2020, or the date when you became unemployed, whichever is more recent, as long as you became unable to work because of a COVID-19 related reason.

PUA Application Process:

To apply, individuals must provide their Social Security number or US Citizenship and Immigration Services (USCIS) number if not a citizen of the United States, and their wage records for 2019, which includes 1099 forms, pay stubs, or bank statements. Applicants will also need the Social Security numbers and dates of birth for dependent children and, if requesting direct deposit for payment, your bank account and routing numbers. A full list of required documents is available at www.mass.gov/pua.

Please note that, initially, the system can only pay benefits retroactively to the week ending March 14, 2020. Eligible workers will be able to certify for benefits, and will be able to request benefits retroactively to January 27, 2020, if their dates of unemployment make them eligible.

Individuals who are determined ineligible for PUA will receive a written disqualification along with information on how to pursue an appeal. Additional information about the appeals process will be separately posted at a later date. Please visit www.mass.gov/dua for the latest information.

Funding Negotiations Likely to Fast Track as PPP Looks to Run Out of Cash Within Hours

by NFS | Apr 16, 2020 | Archives, Blog Posts, COVID

As expected, the Paycheck Protection Program (PPP) is likely to run out of its initial allocation of
$350 billion early today leaving millions of small businesses without relief from the growing
economic effects of COVID-19. The PPP has now become the focal point of Washington politics
and the center of a standoff between Republicans, administration officials, and congressional
Democrats.

The pressure on lawmakers is real and growing and negotiations resumed late Wednesday on
how to replenish the PPP and continue to support small businesses hit by the pandemic. Early
Thursday, the Small Business Administration (SBA) said that 1.5 million applications had been
approved, totaling more than $324 billion in loans. With approximately $10 billion needed for
processing and fees, the PPP is essentially out of funds.

The leading Republican on the House Financial Services Committee, Representative Patrick
McHenry (R-NC), was quoted yesterday saying … “The fund being exhausted clearly puts
pressure on Congress to act and come to a reasonable conclusion. Every day that passes that
we don’t fund this program, more pain is felt by small business folks and their employees.”
All sides agree on adding $250 billion to the PPP but differ over whether to add restrictions to
those funds. As NSA reported earlier, the central differences appear to be centered on where
the funds would be directed. Congressional Democrats are looking to increase access to the
loans to provide relief to underserved minority and veterans groups. Republicans maintain their
position of keeping the PPP focused on small businesses. Democrats also want to add aid for
hospitals, food assistance and state and local governments but Republicans are insisting that
this be deferred until the next phase of broader legislation is crafted.

House and Senate Democratic staff and Treasury officials met late Wednesday morning and a
resolution to the standoff is expected. Senate Minority Leader Chuck Schumer (D-NY) told
reporters he had spoken with Treasury Secretary Steven Mnuchin Wednesday morning and that
“We see no reason why we can’t come to an agreement,” he continued “We Democrats believe
we need more money for small businesses, but we need it to go to the people who are under
banked and underserved.”

As is common in Washington, both sides have accused the other of blocking progress in the
negotiations. However, the discussions Wednesday were the first signs of progress this week. It
remains uncertain whether congressional leaders and President Trump will be able to reach an
agreement by week’s end. Encouragingly, both chambers are now scheduled to hold brief
sessions later this week.

The PPP discussions are also complicated because the Economic Injury Disaster Loan (EIDL)
program is also suffering from depleted funding. Senator Ben Cardin (D-MD) introduced a
measure last week that would provide an additional $65 billion for this separate disaster loans
and grants program and appeared hopeful that both the PPP and EIDL additional funding could
pass. He told reporters yesterday, “I am convinced we could sign off as early as tomorrow on an
agreement if we just sit down and work.”

The EIDL Advance program had been intended to quickly deliver grants of up to $10,000 to EIDL
applicants, but overwhelming demand has caused delays and forced the SBA to change the
guidance on the program.

Senate Majority Leader Mitch McConnell (R-KY) reiterated the Republican position in a
statement Tuesday, saying that Democrats should wait to fund other programs as part of the
next relief package and make sure that the PPP relief for small-businesses was funded. The
statement read “There is no time to insist on sweeping renegotiations or ultimatums about
other policies that passed both houses unanimously”.

In anticipation of the PPP funds running out, however, some banks are reportedly no longer
accepting PPP applications from small businesses. The Wall Street Journal reported yesterday
that Arvest Bank, a regional lender based in Arkansas has made more than $1 billion in loans to
more than 7,000 borrowers, but as of Tuesday has now stopped taking new applications.
“We’re at a point now where we have so many [applications], we’re concerned that the
money’s going to run out,” Arvest Chief Executive Kevin Sabin was quoted. “We’re really
hopeful that…they can get another $250 billion allocated before this runs out, and then we’ll
open it wide open again.”

However, the sheer size of the small business community may be an important part of the
debate not yet being faced in Washington. With an estimated 30 million small businesses in the
United States and the effects of the COVID-19 economic downturn being felt in every corner of
that community, an additional $250 billion is likely not enough relief. With approximately 5% of
small businesses having now received around $334 billion in PPP loans there still remains an
overwhelming majority without relief and likely in need of it.

-April 16, 2020 John Rice NSA CEO