I wanted to put together a list of financial resources that may be helpful to you or someone you know if you have been hit hard during the downturn in the global economy.
This list is not all inclusive. Rather I choose to focus on the my own country, the United States, and the most common areas, such as mortgages and small business loans, that people may need assistance with. I’ve also listed a few other financial resources and guides.
Unemployment financial resources
Some experts are calling for as high as two-million people will be unemployed before we pull out of this financial nosedive.
If you find yourself unemployed you can file for unemployment benefits, which have been extended, here.
Financial resources for mortgage loans
Lenders often sell their mortgages into the secondary market to government-led agencies. You may have heard of Fannie Mae and Freddie Mac. They are two of the largest buyers of mortgage loans.
If you have been financially impacted by the effects of the coronavirus, such as being laid off, you may qualify to have your mortgage payments delayed.
Other potential assistance includes having any late fees waived, withholding of reporting delinquencies to the various credit agencies, and a suspension of foreclosure activities.
If your loan is held by one of these agencies you can read more here.
If not, don’t worry. Mortgage loans that are held by the lenders themselves are eligible for similar relief. I have heard from a lot of banks and credit unions that are putting similar practices into place. Be sure to call your lender and ask what relief programs they have in place.
Small business loan relief
I talked about this the other day. The Small Business Administration (SBA) has what they call an Economic Injury Disaster program that provides business loans, at below market interest rates, to businesses that can demonstrate they have been impacted by the coronavirus.
Keep in mind that money through this program comes in the form of a loan not a grant. So, it must be paid back.
Financial resources for student loans
If you have a student loan and are struggling to keep up with payments you may be eligible for some relief. That relief equates to a deferral of interest on all student loans that are owned by the Department of Education. It appears based on the information I found that monthly payment are still required. Those payments will go toward past due interest or principal.
More relief is on its way
Just yesterday the Republicans and Democrats finally came to agreement on a $2 trillion dollar financial stimulus package. I have not had time to weed through the full details, but CNBC has a rough summary here.
A few key points I noted:
- It looks like the package will include “direct payments” to individuals. Earlier proposes peg those payments at $1,200/individual or $2,400/married couple plus $500/child.
- There is also $350 million dollars in funding that is aimed at helping small businesses stay afloat by offsetting payroll expenses. On an interview on CNBC Monday, Secretary of the Treasury Mnuchin eluded to those funds having the stipulation that the business retain its employees for a minimum period of time.
- There is money carved out to be awarded at the state level for help with fighting the coronavirus, including fund for healthcare providers.
If I can help you in any way feel free to reach out to me.