Your Real Estate Connection BlogRecently posted or modified blog posts in the category - COVID-19 Updateshttps://www.wuertzteam.com/blog/Copyright WuertzTeam.com2020-03-25T20:43:35-07:00tag:wuertzteam.com,2012-09-20:3456Coronavirus Fiscal Stimulus Update - 25 March 2020Administration officials and top Democrats finalized an agreement early Wednesday morning that would result in the largest economic stimulus measure in modern history. Dubbed "The CARES Act" the legislation is called the Coronavirus Aid Relief and Economic Security Act. It will become law and go into effect if it is passed by the Congress and signed by the President.
The $2 Trillion rescue fund would authorize direct payments to taxpayers and loans to small businesses, and create a $500 billion corporate bailout fund. Here are the 5 Key components of the stimulus package:
1. $1,200 in direct payments to taxpayers
This would only be offered to individuals with incomes up to $75,000 per year before starting to phase out and ending altogether for those earning more than $99,000. That’s $1,200 per person and $2,400 per couple. Families would receive an additional $500 per child.
2. Unemployment benefits will grow substantially
The bill extends unemployment benefits by 13 weeks and includes a four-month enhancement of these benefits. The program will also be broadened to those in the “gig” economy including freelancers, furloughed employees and even Uber drivers to name a few.
3. Small businesses will receive emergency loans if they keep their workers
The bill provides federally guaranteed loans available at community banks to small businesses that pledge not to lay off their workers. The loans would be available during an emergency period ending June 30, and would be forgiven if the employer continued to pay workers for the duration of the crisis.
4. Distressed companies can receive government bailouts <br />Although there are many conditions, loans for distressed companies would come from a $425 billion fund controlled by the Federal Reserve, and an additional $75 billion would be available for industry-specific loans — including airlines and hotels.
5. Help for hospitals and healthcare providers
The agreement includes $100 billion for hospitals and health systems across the nation that have been burdened by the COVID-19 pandemic. The Aid can be used, for example, to purchase personal protective equipment, testing supplied and new construction to house patients. It also includes an increase in Medicare payment to all hospitals and providers.
For informational purposes only. Not to be construed as financial advice. Provided as a synopsis from sources deemed reliable.2020-03-25T19:49:00-07:002020-03-25T20:43:35-07:00John Wuertztag:wuertzteam.com,2012-09-20:3449Federal Reserve Update March 23, 2020The Federal Reserve (‘the Fed”) just announced sweeping new measures to support households, business, and the US economy in these challenging times all in an effort to limit the losses to jobs and incomes and to promote a swift recovery once these disruptions abate.
A vicious cycle is underway: Fearful investors sell assets to raise cash, which drives down the prices of those assets, which spurs more fear and desire to hoard cash. That, in turn, has caused credit to dry up, or to be available only at soaring costs, for nearly everyone: corporations, small businesses, state and local governments, and people seeking a mortgage loans.<br /><br />
This morning the Fed signaled that it will buy Treasury bonds and mortgage-related securities in whatever quantities are needed in order to make the financial markets function more like usual. In the last three weeks, financial markets have frozen up as all sorts of investors hoard cash and dump every other type of security. This has put a real strain on the amount of cash in our economic system.<br /><br />
The Fed’s decision to purchase treasuries and mortgage-backed securities in any amount necessary should have a positive impact on the housing market. This decision means that the US Government will buy mortgage-backed securities going forward so banks can unload these mortgages to the government and can continue to originate new mortgages for those looking to buy. The goal is to ensure that banks keep lending and providing financing to these borrowers. <br /><br />
Coupled with the lower interest rates, the Fed is hoping that these new measures will create a positive environment for buyers and sellers.
For more information or to read the full article from The Fed, visit their website <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm" target="_blank">here</a>.2020-03-23T19:09:00-07:002020-03-24T19:15:51-07:00John Wuertz