The COVID-19 pandemic has brought with it a whole host of unprecedented economic and social changes, prompting the U.S. government to pass the CARES Act as a means of providing financial assistance to those struggling in its wake. But what exactly is this act and how will it affect property owners? Find out in this article what you need to know about the CARES Act and how it could help you or your business during these difficult times.
Impact of the CARES Act on Property Owners
The CARES Act was instrumental in helping many Americans weather the economic downturn caused by the pandemic. For property owners, the Act provided much-needed relief from mortgage payments and other expenses. It also helped to stabilize the housing market by preventing foreclosures and evictions. You can find resources describing the CARES Act and its impact on property owners online easily. Plus, the government set up programs like the Homeowner Assistance Fund to provide additional assistance. The CARES Act also included tax breaks and incentives that can help property owners save money. In addition, the Act extended deadlines for filing taxes and other financial documents, giving property owners more time to manage their finances.
What Are the Benefits of the CARES Act for Property Owners?
- Mortgage forbearance: Property owners with Federally backed mortgages who are experiencing financial hardship due to the pandemic can request forbearance from their lender for up to 180 days. This means that they can temporarily stop making their mortgage payments without fear of foreclosure.
- Eviction moratorium: The CARES Act imposes a nationwide moratorium on evictions for non-payment of rent for 120 days. This applies to all properties covered by the federal eviction moratorium, which includes most properties with federally-backed mortgages or loans.
- Utility assistance: The CARES Act provides $900 million in funding to assist low-income households with paying for water, sewer, and electricity services. This assistance can help property owners keep their tenants housed and reduce the risk of homelessness during the pandemic.
- Small business loans: The CARES Act establishes a new Paycheck Protection Program that provides small businesses with low-interest loans of up to $10 million. These loans can be used to cover payroll and other business expenses and may be forgiven if the business meets certain requirements related to maintaining employees and wages.
Challenges and Obstacles to Consider
The act does not provide any relief for those who have lost their jobs due to the pandemic. Additionally, the act only provides a limited amount of financial assistance for businesses that have been impacted by the pandemic.
Another challenge with the CARES Act is that it contains several provisions that were set to expire at the end of 2020. This includes the eviction moratorium, which could have led to a wave of evictions if it is not extended. Additionally, the unemployment benefits provided by the act were also set to expire at the end of 2020, which could have left many people without income if they were unable to find a job.
Keep in mind that the CARES Act is also a complex piece of legislation and understanding all of its provisions can be difficult. This can make it difficult for businesses and individuals to take full advantage of the assistance it provides. As such, it is important to seek out professional help if you need assistance in understanding the details of the act.
How to Apply for Assistance from the CARES Act
The CARES Act provides financial assistance for Americans who are struggling to make ends meet due to the coronavirus pandemic. If you are in need of assistance, you can apply for help through the following channels:
- The Department of Health and Human Services: The HHS provides financial assistance for healthcare-related expenses, including COVID-19 testing and treatment. You can apply for assistance through the HHS website or by calling 1-800-318-2596.
- The Small Business Administration: The SBA provides loans and grants to small businesses that have been impacted by the pandemic. You can apply for assistance through the SBA website or by calling 1-800-659-2955.
- The Federal Emergency Management Agency: FEMA provides financial assistance for emergency expenses, including housing, food, and transportation. You can apply for assistance through the FEMA website or by calling 1-800-621-3362.
The CARES Act has been a lifeline to millions of Americans during this difficult time. Whether you are one of the many people who have received assistance through unemployment benefits, stimulus checks, or student loan forbearance, it is important to understand how this relief package can help you get back on your feet. With careful research and knowledge about the provisions of the CARES Act, individuals and families can take advantage of all that is available to them for financial aid.