April 01, 2020 I Coronavirus
Government Passes Stimulus Package, NAMM Provides Resources
On Friday, March 27, President Trump signed a historic $2 trillion stimulus bill to provide funds to individuals, corporations and small businesses to combat the economic impact of Covid-19.
The bill is the largest emergency aid package in the nation’s history. As part of the package, individuals will be sent checks and see expansion of their unemployment benefits. The package provides additional money for struggling hospitals and health care providers, financial assistance for small businesses and $500 billion in loans for damaged companies.
Small businesses—businesses and nonprofits with 500 or fewer employees, veterans organizations and tribal business concerns—can apply for a 10% forgivable loan that will help pay for employee salaries, up to $100,000, and some basic overhead costs. How much small businesses can borrow depends on how much the business or nonprofit paid its employees between Jan. 1 and Feb. 29 of 2020.
The best way to go about applying for a loan is to contact your bank. Employers can cover no more than eight weeks of payroll and overhead costs with forgivable loans.
To further aid music retailers and suppliers in understanding the impact that the stimulus package and Covid-19 are having on the industry, NAMM has set up a resources page here, which includes free articles and webinars.
“The reality of this unprecedented time requires an evolving, new playbook and willingness to stay up on ongoing new information and resources to keep music, pro audio and entertainment technology businesses afloat and support the creative workers in this industry,” said Mary Luehrsen, NAMM director of public affairs and government relations. “The power of music and deep desire we all have to engage [with] and create music will also motivate the path forward. We encourage all NAMM members and music and creative industry workers to tap federal relief efforts for small businesses, sole proprietors/independent contractors and employees.”
The individual and married couple portion of the package will provide individuals with adjusted gross incomes up to $75,000 with a $1,200 check. At higher gross incomes, reduced checks will go out to individuals making up to $99,000 a year. Married couples are eligible for a $2,400 check as long as their adjusted gross income is under $150,000 a year.
Reduced checks will be sent out to married couples who earn up to $198,000. Married couples also will receive $500 more for every child under 17 they have.
Those who file as a “head of household” (typically single parents with children) are eligible for a $1,200 check if they have an adjusted gross income up to $112,500 a year. Reduced checks are available for heads of household who earn up to $136,500 annually. Like married couples, heads of household will receive an additional $500 per child under 17.