Relief for Small Businesses
What if my small business cannot afford to pay sick leave?
The Families First Coronavirus Response Act authorized a refundable payroll tax credit to reimburse small businesses for paid sick leave and family and medical leave. Click here for an explanation of who is eligible and here for more information on the Employee Retention Credit.
I have to close my business to comply with Governor Northam’s executive order during the pandemic. What assistance is available to keep my business running and assist my employees?
There are several programs that were created by the CARES Act through the Small Business Administration to assist your business: the Paycheck Protection Program, the Economic Injury and Disaster Loan Program, Emergency Economic Injury Grants, and the Small Business Debt Relief Program. Please visit www.sba.gov/coronavirus for additional information. You should also contact your local SBA lender. For a full list of SBA lenders in Virginia, please visit: https://www.sba.gov/offices/district/va/richmond/resources/virginia-sba-lenders.
Paycheck Protection Program Loans
- Funds for payroll costs, continuing group health care benefits, salaries, rent and utility payments among several others
- Loan payments will be deferred for six months
- Program are eligible for loan forgiveness if you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses, including paying your mortgage, rent, utilities, and interest on pre-existing debt obligations
Economic Injury and Disaster Loans Program and Emergency Economic Injury Grants
- Up to $2 million in assistance that can be used to pay immediate expenses during an emergency
- $10,000 advance payment that does not need to be repaid for businesses and may be used to keep employees on payroll, pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Small Business Debt Relief Program
- Immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans
- SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months
Did the Paycheck Protection Program run out of money?
The Paycheck Protection Program temporarily ran out of money. On April 23rd, Congress passed H.R. 266, the Paycheck Protection Program and Health Care Enhancement Act, to replenish the funds.
Economic Impact Payments
Who is eligible for the $1,200 payment?
Virtually all adults are eligible to receive the Economic Impact Payments created by the CARES Act. The payment is $1,200 for each adult individual ($2,400 for joint filers), and $500 per qualifying child under the age of 17. The Economic Impact Payment is a rebate based on your 2019 tax return (if you have not yet filed for 2019 it will be based on your 2018 tax return). This money is not taxable income for 2020.
What are the income limitations for the rebate?
The rebate payment is reduced by $5 for every $100 of income to the extent a taxpayer’s income exceeds $150,000 for a joint filer, $112,500 for a head of household filer, and $75,000 for anyone else (including single filers). Additional information about eligibility is available at: https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions.
I am not required to file taxes, am I still eligible?
Yes, there is no earned income requirement. Individuals who have an income level that did not require them to file a tax return in 2018 or 2019 should enter their payment information online to determine if they are eligible and, if so provide information to obtain their Economic Impact Payment here: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
Am I eligible if I receive Social Security retirement, disability (SSDI), survivor benefits, Railroad Retirement benefits, or receive Compensation and Pension benefit payments from the Department of Veterans Affairs (VA)?
Individuals who receive Social Security retirement, disability (SSDI), survivor benefits, Railroad Retirement benefits, or receive Compensation and Pension benefit payments from the Department of Veterans Affairs (VA) and did not file taxes in 2018 or 2019 do not need to take any additional action to receive their benefit but do need to provide additional information if they have qualifying dependents. Payments are being processed based on information already on file with the IRS, Social Security Administration, and the VA. Those with qualifying dependents or to update your payment information may provide that information online here: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
How will I receive my payment?
Payments for people who filed a federal income tax return in 2018 or 2019 are being processed based on information already on file with the IRS. If you did not provide banking information you may update your information on the "Get My Payment" web page here: https://www.irs.gov/coronavirus/get-my-payment.
When should I expect to receive my payment?
The IRS began sending out economic impact payments the week of April 13th. You can track the status of your payment here: https://www.irs.gov/coronavirus/get-my-payment.
Should I apply for unemployment?
If you have been laid off or have had your hours reduced as a result of the COVID-19 pandemic, you should apply for unemployment through the Virginia Employment Commission here: vec.virginia.gov or you via telephone at 1-866-832-2363.
What are the requirements for receiving unemployment insurance in Virginia?
The Virginia Employment Commission processes all unemployment claims in the Commonwealth. You can file online at vec.virginia.gov or if you are filing an initial claim you can call 1-866-832-2363.
I am self-employed, an independent contractor, gig-economy worker that is not normally eligible for unemployment insurance in Virginia. Will I receive assistance?
Yes, the CARES Act created Federal Pandemic Unemployment Compensation and provides a weekly payment of $600 for qualifying individuals, which will be managed by each state. You can apply for Federal Pandemic Unemployment Compensation or if you are filing an initial claim you can call 1-866-832-2363. More information can be found here: https://www.vec.virginia.gov/html/pua.html
Can I receive both state unemployment insurance and federal pandemic unemployment compensation?
Yes, through July 31, 2020, the federal government will provide a temporary Federal Pandemic Unemployment Compensation (FPUC) of $600 a week for any worker eligible for state or federal unemployment compensation (UC) benefits. The FPUC will be paid in addition to and at the same time (but not necessarily in the same check) as regular state or federal UC benefits. The FPUC, combined with the underlying state unemployment benefit, will replace 100 percent of wages for the average U.S. worker. Your patience is requested as the Virginia Employment Commission is handling an unprecedented number of claims. vec.virginia.gov or if you are filing an initial claim you can call 1-866-832-2363. More information can be found here: https://www.vec.virginia.gov/html/pua.html
I am experiencing homelessness, how can I access assistance?
If you are experiencing homelessness, or think you are at risk of losing your housing, you can go to the nearest homeless shelter or other homeless provider to seek assistance. Please find an extended FAQ regarding housing issues here.
What kind of relief is provided for renters under this bill?
For renters living in “covered dwellings” (see next question below for this definition), the CARES Act provides a temporary moratorium on evictions as well as late fees for nonpayment of rent or other charges for a period of 120 days starting on March 27, 2020. Renters should be advised that the moratorium only applies to evictions for nonpayment of rent, not for other causes. Renters should also be advised that although they may be protected from eviction proceedings temporarily under this bill, the bill does not treat nonpayment of rent during this period as forgiven and these unpaid amounts will accrue during this period even if fees are not assessed.
What is a “covered dwelling”?
A “covered dwelling” is rental housing supported by any of the following federal housing programs:
- Public housing;
- Section 8 Housing Choice Vouchers;
- Section 8 Project-Based Rental Assistance;
- Section 202 Supportive Housing for the Elderly;
- Section 811 Supportive Housing for Persons with Disabilities;
- Housing Opportunities for Persons With AIDS (HOPWA);
- McKinney-Vento Homeless Assistance grants;
- Section 236 Preservation program;
- HOME investment partnerships;
- Rural Development multifamily housing (Section 516 Farm Labor Housing Grants, Section 542 Rural Development Vouchers, Section 521 Rural Rental Assistance, Section 533 Housing Preservation grants);
- the Low Income Housing Tax Credit (LIHTC) program;
It also includes rental housing with a single-family or multifamily mortgage that is:
- purchased or securitized by Fannie Mae or Freddie Mac;
- insured by the Federal Housing Administration (FHA);
- guaranteed, directly provided by, or insured by the Department of Veterans Affairs (VA);
- guaranteed, directly provided by, or insured by the Department of Agriculture (USDA); or
- guaranteed under HUD’s Native American or Native Hawaiian Home Loan Guarantee programs.
Some renters will know that their home is included because they recognize the name of a federal housing program on the list above that they had to apply and qualify for. However, if you’re not sure whether your rental unit is included, you can search the National Preservation Database, which includes most of the covered dwellings, but not all.
Who is eligible for homeowner assistance?
Homeowners with “federally backed mortgages” are eligible for assistance. You can read more here.
What assistance is available for eligible homeowners?
Homeowners with federally backed mortgages are provided with a foreclosure moratorium of at least 60 days starting on March 18, 2020. This includes the initiation of new foreclosure as well as the continuation of a foreclosure that has already been initiated. Homeowners are also provided with the right to request and receive forbearance on their mortgage payments for up to 6 months (which can be extended for an additional 6 months). Mortgage forbearance is not a forgiveness of debt, and you will have to work out a loan modification or repayment plan with your loan servicer to cover the months your mortgage was in forbearance. You are encouraged to seek out housing counseling assistance. U.S. Department of Housing and Urban Development (HUD)-approved counseling agencies can be found here.
Student Loans and Education
When do I have to make my student loan payments?
Student loan and interest payments are suspended until September 30th for all federally owned loans without any penalty to the borrower. The CARES Act also halts all involuntary collection of federal student loan debt, including wage garnishment and tax refund offset, through September.
Do I need to apply to suspend my payments or interest?
No. From March 13 through September 30, 2020, the interest rate is set to 0% and payments are suspended for student loans owned by the federal government. Your federal student loan servicer will suspend all interest and payments without any action from you. You do not need to contact your student loan servicer.
If you made a payment toward your federally-held student loans after March 13, you can request a refund from your student loan servicer. However, if you are financially able to make payments or continue making payments on your student loans, any payments you made or make after March 13 will be applied directly to principal. This will help you pay off your loans faster.
How do I know if my loan is eligible? Are interest and payments suspended on all of my student loans, including my private student loans?
No. The suspension of payments applies only to student loans that are held by the federal government, which are the vast majority of student loans issued since 2010. Some federal student loans under the Federal Family Education Loan (FFEL) Program are owned by commercial lenders, and some Perkins Loans are held by the institution or school you attended. Your FFEL lender or school may choose to suspend interest and payments on a voluntary basis, but they are not required by law to do so. You can contact your servicer to find out if these options are available to you. The benefits authorized by the CARES Act also do not apply to private (non-federal) student loans owned by banks, credit unions, schools, or other private entities. Many private student loan lenders are offering extended forbearance options and other benefits. However, please note that private lenders may continue to allow interest to accrue during a forbearance. Contact your lender or servicer for more information.
I am working toward Public Service Loan Forgiveness, what impact can this have on my progress?
If you are working toward Public Service Loan Forgiveness (PSLF) you need to be aware of a few key items. Only Direct Loans are eligible for PSLF. All Direct Loans are owned by the federal government. For Direct Loans, even though payments are suspended, those suspended payments will count as though you had made a payment toward the 120 required payments for forgiveness under PSLF as long as you have met the other the PSLF program requirements. If you have other types of federal loans and are working in public service, you can consolidate most, if not all, of those loans into a Direct Consolidation Loan, which is eligible for PSLF if other program requirements are met.
My federal student loans are in default. Is there anything I can do?
The Department of Education has stopped the collection of defaulted federal student loans, including garnishment of wages and the offset of tax refunds and Social Security benefits until September 30th. In addition, the CARES Act also suspends interest for federally-owned loans that are in default, through September 30, 2020. There is no additional action required from you for your federally-owned loans. For all other defaulted federal loans, contact your loan holder to find out about your options.
Will schools in Virginia re-open this year?
No. Governor Northam announced on March 23, 2020 that all K-12 schools in Virginia will remain closed for the remainder of the school year. The Governor has also directed all Virginia institutions of higher education to stop in-person classes and instruction.
Are there supports for K-12 schools and colleges and universities?
The CARES Act includes $30 billion for education. Our nation’s public K-12 schools were provided funds to invest in more technology and training to advance remote learning and for other expenses caused by the pandemic. In addition, colleges and universities in Virginia’s Third Congressional District will receive over $46 million from the CARES Act. This funding will help struggling students cover the cost of food, housing, and other basic essentials, and give institutions of higher education a lifeline as they suffer heavy financial losses. Additionally, the Commonwealth of Virginia will receive nearly $67 million in emergency education funding as a result of the CARES Act.
Access to Meals
How did the Families First Coronavirus Response Act affect WIC benefits?
H.R. 6201 provides half a billion dollars for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) to help low-income pregnant women or mothers with young children who lose their jobs or are laid off due to the coronavirus emergency. While it is normally required to certify and recertify in person, H.R. 6201 allows for that requirement to be waived. If you are pregnant or have children under the age of five, WIC may be able to help. Visit myvawic.org or call 888-942-3663.
How did the Families First Coronavirus Response Act address the Emergency Food Assistance Program (TEFAP)?
H.R. 6201 provided $400 million for the Emergency Food Assistance Program (TEFAP) to assist local food banks, $100 million of which can be used to cover the cost of food distribution.
Where can seniors get meals?
The Families First Coronavirus Response Act provided $250 million to provide approximately 25 million additional home-delivered and pre-packaged meals to seniors who depend on Senior Nutrition programs in their communities. The Food Bank of the Virginia Peninsula and the Food Bank of Southeastern Virginia and the Eastern Shore are currently providing food to households that are experiencing food access challenges “drive through style” and posting updates on their websites. Additionally, Senior Services of Southeastern Virginia’s Meals on Wheels clients will continue to receive meal deliveries. Please note that Senior Services of Southeastern Virginia congregate meal sites are closed at the current time and workshops have been delayed. You can call SSEVA for more information at 757-461-9481.
Where can children get meals?
The Families First Coronavirus Response Act allows child and adult care centers to offer food to-go and gives the Secretary of Agriculture flexibility to grant permission to providers to ensure that meals are distributed in a way that avoids the spread of coronavirus. Along with the Food Bank of Southeastern Virginia and the Eastern Shore, the Food Bank of the Virginia Peninsula, and the Boys and Girls Club of the Virginia Peninsula, school districts in Virginia’s 3rd Congressional District are providing "grab-n-go" bagged meal services on weekdays while schools are closed. Please click the following links to find out more and note that children may need to be present to pick up meals.
- Franklin City Public Schools - Lunches and snacks will be provided at S.P. Morton Elementary School from 10:30 a.m. to 12 noon and at eight “meal stops.”
- Newport News Public Schools - Lunches and breakfasts for the following day can be picked up at a number of school and mobile locations.
- Portsmouth Public Schools - Breakfasts and lunches can be picked up at eight school locations and 12 drop-off locations. Portsmouth Parks and Recreation also has a number of feeding sites open from 12 PM to 2 PM.
- Chesapeake Public Schools – Breakfasts and lunches can be picked up between 10 AM and noon at a number of school and mobile locations.
- Hampton City Schools – Children are eligible to pick up meals on Mondays, Wednesdays, and Fridays from 11 AM to 12:30 PM from a number of school locations. On Mondays and Wednesdays, children will receive two days’ worth of breakfast and lunch items. On Fridays, children will receive breakfast and lunch.
- Norfolk Public Schools – Two meals a day can be picked up each weekday at a number of school and mobile locations.
- Suffolk Public Schools – Breakfasts and lunches can be picked up from 9 AM to noon each weekday at King’s Fork High School and a number of mobile locations.
- Isle of Wight County Schools – Breakfasts and lunches can be picked up each weekday at a number of school and mobile locations.
Please note, in accordance with the Families First Coronavirus Response Act of 2020, the Food and Nutrition Service has granted a nationwide waiver allowing sites to permit parents and/or guardians to pick up meals for their children, without the student needing to be present.