Note: This update reflects accurate information as of 12/22 at 12pm EST
Last night, House and Senate lawmakers passed a $900 billion bipartisan COVID-19 relief bill. President Trump is expected to sign it soon. As your bank, we wanted to share helpful information regarding two key portions of the bill, Economic Impact Payments (EIPs) and Paycheck Protection Program (PPP) funding.
The legislation includes a second round of Economic Impact Payments (EIPs) to be made directly to recipients.
How much will I receive?
The maximum payment for an individual is $600, and the $600 limit will also apply to dependents. The maximum benefits will apply to individuals with an income below $75,000 per their 2019 tax returns. Those with incomes higher than $75,000 will receive a prorated amount until the cut-off for any payment at all for those earning $87,000 if they have no dependents. For couples, the full benefit will apply to those earning up to $150,000 and will taper off as their income approaches $174,000.
When will I get my EIP?
The payments are expected to be sent out as soon as next week. The fastest way to receive funds in a safe and secure manner is through direct deposit to either a bank account or a reloadable prepaid debit card. Receiving payment by check could result in multiple weeks of waiting for it to be mailed.
How will I get my EIP?
Economic Impact Payments will be sent out via direct deposit or a mailed check. If you expect to receive payment by check, we encourage you to deposit it using our ATM or secure mobile app (search “Community First Bank of IN” in your Google Play Store or Apple App Store and download for free).
You will likely not need to take any action to get your EIP. According to the government, the IRS will calculate and automatically send 130 million economic impact payments via direct deposit, to be available to eligible recipients. The IRS already has direct deposit information for millions of Americans from the first round of EIPs in April. During the first round of EIPs, the IRS hosted live internet portals that allowed recipients to register their banking information to receive payments electronically. We expect them to pursue a similar strategy but are awaiting official confirmation. For the most up-to-date information, please visit IRS.gov/coronavirus.
The legislation also includes $284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers. Organizations with less than 300 employees will be eligible for a second loan if they can demonstrate they have had a reduction in quarter revenue of 25 percent from 2019 to 2020.
Other highlights of the new PPP provisions include:
Eligibility for PPP loans will be limited to businesses that were operating as of February 15, 2020
When can I apply for these PPP funds with Community First Bank of Indiana?
Rest assured, we are working as quickly and diligently as possible to prepare our team to assist your organization with this process. Once signed by President Trump, the SBA will create and publish the application, rules, and updates. We expect this to take a couple of weeks. Shortly after the SBA is ready, we will also be ready for applications on our website at www.cfbindiana.com/paycheck-protection-program/. As of now, we expect the application to be live on our website by the middle of January but will provide updates on our website as we get them.
We encourage you to be patient as we gather new facts and provide updates on our website, but if you have a question in the meantime please contact your lender directly. If you do not currently work with a lender at Community First Bank, you can reach our team at 765-236-0600 during operating hours (Mon – Fri 9:00 am to 5:00 pm).
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