Coronavirus Legislation Update

March 27, 2020 Dear Mr. Albero, I write today to update you with important information about emergency coronavirus legislation. On March 27, 2020, the House of Representatives passed H.R. 748 the  Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislative package, expected to cost over $2 trillion, was crafted to mitigate the effects of the coronavirus pandemic by providing direct aid and financial assistance to taxpayers, small businesses, and the healthcare sector. While I had significant concerns about extraneous and wasteful provisions in the bill, it was important to provide urgently needed economic assistance to the American people. Below are a few of the major provisions: Direct payments to Taxpayers:    The Internal Revenue Service (IRS) will determine a taxpayer’s eligibility through recent tax filings or their Social Security Benefit Statement. Taxpayers with an adjusted gross income of $75,000 or less ($150,000 if filed jointly), will receive a one-time payment of $1,200 from the Treasury, plus an additional $500 for every child under the age of 17.  For those taxpayers who make more than $75,000 annually ($150,000 if filed jointly), their payment will decrease by $5 for every additional $100 of income. Taxpayers with income exceeding $99,000 ($198,000 if filed jointly) will not receive this financial assistance. The payments will be deposited automatically by the Treasury, if the taxpayer has provided their direct deposit information on their 2018 or 2019 tax filing. If a taxpayer’s direct deposit information was not provided, these payments will be sent by check.  Loans and Loan Forgiveness for Small Business:    An additional $350 billion is provided for loans through the Paycheck Protection Program through the Small Business Administration (SBA), to help small employers keep employees on payroll and sustain their business. These loans will be made available to businesses with less than 500 employees, non-profits, contractors and self-employed/sole proprietorships. The SBA will use an eligibility formula in which the loan amount is tied to the business’s payroll costs for two-and-a-half months and will max out at $10 million. Allowable use of these loans includes payroll support, salaries, paid sick leave, insurance premiums, rent, mortgages, and utilities. The legislation also waives borrower and lender fees, as well as collateral and personal guarantee requirements. In order to encourage businesses to continue to pay employees, this bill provides loan forgiveness equal to the amount spent on payroll, rent, and utilities during the first eight weeks after the loan is issued.    Small Businesses will be able to apply for this assistance at local banks that provide SBA loans, and additional SBA Disaster Loans are also available for up to $2 million of working capital. Early Withdrawal from Retirement Accounts:    In order to provide greater flexibility during the pandemic, H.R. 748 also waives the 10% early withdrawal fee from qualified retirement accounts for withdrawals of up to $100,000. These distributions must be made for coronavirus-related hardships, and the income attributed to them will be subject to tax over three years.       I hope this information is helpful.    Please rest assured that, as a physician, I will continue to carefully evaluate all additional responses to coronavirus here in Congress.   To keep up with my work in Congress, visit my website at harris.house.gov and sign up to receive updates atharris.house.gov/contact/newsletter.   Should you wish to unsubscribe from my newsletter, you may follow the same link. Sincerely, Member of Congress Andy Harris M.D.