CARES Act FAQ

April 10, 2020

FAQs (CARES Act – Phase 3):

DIRECT PAYMENTS

  • Will I be eligible for a rebate relief direct payment?
    • Yes, Direct payments to Americans through recovery rebates in amounts of $1,200 for individuals and $2,400 for couples.
      • Amount increases $500 per dependent.
      • Amount is incrementally decreased for wages above 75,000 and $150,000 thresholds
    • For people who haven’t filed taxes yet, they would utilize 2018 tax returns.
  • Are these payments taxable?
    • No, these payments are not taxable.
  • When will these direct payments go out?
    • Secretary Mnuchin said on March 29th that he hoped they would be going out in the next three weeks.
  • What is the phase out?
    • The total credit to phase out at a rate of 5% of adjusted gross income (AGI) above $75,000 ($112,500 for head of household filers, $150,000 for married joint returns).
  • Are Social Security numbers necessary?
    • Generally, all individuals must have Social Security numbers. Among members of the armed forces, only one spouse must have an SSN.
  • Who is defined as a dependent?
    • Children 17 and under could be considered eligible for the dependent increase.
  • Do dependents, other than children under 17, qualify a taxpayer for an additional $500 per dependent? 
    • No, the additional $500 per child is limited to children under 17.
  • Are illegal immigrants eligible for the payments?
    • No, illegal immigrants are not eligible.
  • Are seniors eligible for the payments?
    • Yes, as long as they are not the dependent of another taxpayer.
    • The bill also provides IRS with additional tools to locate and provide rebates to low-income seniors who normally do not file a tax return.
    • Seniors are still encouraged to file their 2019 tax return to ensure they receive their recovery rebate as quickly as possible.

UNEMPLOYMENT ASSISTANCE

  • Does this bill include additional unemployment assistance?
    • Yes, it establishes a pandemic unemployment assistance program to cover people who not eligible for regular compensation or extended benefits under State or Federal law or people not covered under other programs in this package.
      • Includes eligibility for independent contractors and self-employed individuals.
      • The bill also includes support to state and local governments and nonprofits so they can pay unemployment to their employees.
      • Requires self-certification the individual is able to work
  • How much will be paid out under this expanded unemployment assistance program?
    • The bill provides an additional $600/week payment to each UI or Pandemic Unemployment Assistance recipient for 4 months beginning April 1 through July 31, 2020.
  • Will the unemployment assistance be extended?
    • Yes, the bill provides an additional 13 weeks of unemployment to help those who remain unemployed after weeks of state unemployment are exhausted.
  • Is this unemployment assistance program retroactive?
    • Yes, it is retroactive to late January.
  • What are the conditions if I am unavailable or unable to work and receive assistance?
    • The individual has been diagnosed with COVID–19 or is experiencing symptoms of COVID–19 and seeking a medical diagnosis;
    • A member of the individual’s household has been diagnosed with COVID–19;
    • The individual is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID–19;
    • A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of the COVID-19 public health emergency and such school or facility care is required for the individual to work;
    • The individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency;
    • The individual is unable to reach the place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID–19;
    • The individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency;
    • The individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID–19;
    • The individual has to quit his or her job as a direct result of COVID–19;
    • The individual’s place of employment is closed as a direct result of the COVID–19 public health emergency; or
    • The individual meets any additional criteria established by the Secretary for unemployment assistance under this section; or
  • What about furloughed workers?
    • States have policies in place to allow furloughed workers to receive unemployment benefits and part-time workers can receive partial benefits. The Pandemic Unemployment Assistance program also helps workers stay connected to their employer by allowing unemployment benefits for workers who have a job but are unable to work or telework due to COVID-19-related reasons and are not receiving paid leave through their employer.

SMALL BUSINESS ASSISTANCE – PAYCHECK PROTECTION

  • Does this bill establish new small business assistance programs?
    • Yes, it establishes the Paycheck Protection Program to include small businesses, non-profits, veteran-owned businesses, and tribal organizations
  • What are the loan amounts?
    • The maximum loan amount will be the lesser of $10 million dollars or 2.5 times the average monthly payroll based on the prior year’s payroll.
  • When will this program become available?
    • Secretary Mnuchin said on March 29th that he hoped the guidance to private lenders would be done within a week.
  • Who is eligible?
    • Businesses and entities must have been in operation on February 15, 2020.
    • Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
    • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
    • Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
    • Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.
  • Does that mean churches and religious organizations are eligible?
    • Yes, if those institutions are registered as 501(c)(3)s.
  • How is the loan size determined?
    • Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million.
    • If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period. If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date.
    • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
    • If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.
  • Who should I contact for the loan?
    • Reach out to your lender or banker.
  • What would self-employed individuals and independent contractors need to do for eligibility?
    • For self-employed and independent contractors, they will need to submit payroll tax filings reported to the Internal Revenue Service, Forms 1099–MISC, and income and expenses from the sole proprietorship.
  • Are there defined uses for the assistance under the Paycheck Protection Program?
    • Yes, loan uses include payroll costs, group health benefit costs, employee salaries, commissions, mortgage interest, rent, utilities, and interest.
  • What costs are eligible for payroll?
    • Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
    • Payment for vacation, parental, family, medical, or sick leave • Allowance for dismissal or separation
    • Payment required for the provisions of group health care benefits, including insurance premiums
    • Payment of any retirement benefit
    • Payment of State or local tax assessed on the compensation of employees
  • What costs are not eligible for payroll?
    • Employee/owner compensation over $100,000
    • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
    • Compensation of employees whose principal place of residence is outside of the U.S.
    • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
  • What is the loan term, interest rate, and fees?
    • For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge).
  • Will payments be deferred?
    • Built into the new Paycheck Protection loans will be automatic deferrals of principal, interest, and fees for six months.
  • Is there a process for the loans to be forgiven under the Paycheck Protection Program?
    • Yes, this legislation establishes a loan forgiveness process not to exceed the loan’s principal. If the employer maintains payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
  • Will the amount forgiven be reflected by the recipient’s actions?
    • The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation.
  • How do I get forgiveness on my PPP loan?
    • You must apply through your lender for forgiveness on your loan. In this application, you must include:
      • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
      • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
      • Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use.
  • What happens after the forgiveness period?
    • Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again.
  • Am I responsible for interest on the forgiven loan amount?
    • No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate according to the loan terms agreed upon by you and the lender.
  • Can I get more than one PPP loan?
    • No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity.
  • Where should I go to get a PPP loan from?
    • All current SBA 7(a) lenders (see more about 7(a) here) are eligible lenders for PPP. The Department of Treasury will also be in charge of authorizing new lenders, including nonbank lenders, to help meet the needs of small business owners.
  • I took out a bridge loan through my state, am I eligible to apply for the Paycheck Protection Program?
    • Yes, you can take out a state bridge loan and are still be eligible for the PPP loan.
  • How does the PPP loan coordinate with SBA’s existing loans?
    • Borrowers may apply for PPP loans and other SBA financial assistance. However, you cannot use your PPP loan for the same purpose as your other SBA loan(s).

SMALL BUSINESS ASSISTANCE – EIDL

  • Does this legislation expand the SBA’s Economic Injury Disaster Loan eligibility?
    • Yes, it expands Economic Injury Disaster Loan eligibility to include impacted independent contractors and sole proprietors as well as private non-profits.
  • Are religious organizations, such as churches, eligible for EIDL loans?
    • No, religious institutions are not eligible for this loan program, but they are eligible for assistance through the Paycheck Protection Program.
  • What is an EIDL and what is it used for?
    • EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
  • Who is eligible for an EIDL?
    • Those eligible are the following with 500 or fewer employees:
      • Sole proprietorships, with or without employees
      • Independent contractors
      • Cooperatives and employee owned businesses
      • Tribal small businesses
    • Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size.
  • Can a borrower get both a PPP loan and an EIDL loan?
    • Businesses will be able to receive an EIDL and a Paycheck Protection loan if they go for different things. Additional flexibility is granted through no prepayment penalties on EIDLs and no prepayments penalties on Payment Protection loans. Additionally, a refinancing option has been included.
  • Are there direct assistance grants through the SBA in this bill?
    • Yes, for people applying for EIDL loans, the bill outlines Economic Injury Disaster Loan (EIDL) grants of up to $10,000 to provide sick leave, payroll, increased costs, rent/mortgage, and repayment obligations.
  • Who is eligible for an Emergency Economic Injury Grant?
    • Those eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.
  • How long are Emergency Economic Injury Grants available?
    • January 31, 2020 – December 31, 2020. The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.
  • Would the EIDL grants need to be repaid if I don’t end up receiving a loan under EIDL?
    • No, it wouldn’t have to be repaid even if you are denied an EIDL loan.
  • Was there an increase in loan amounts under the SBA Express Loan program?
    • Yes, in addition to less paperwork and documentation required, amounts were increased from $350,000 to $1 million.

SMALL BUSINESS DEBT RELIEF PROGRAM

  • What is the Small Business Debt Relief Program?
    • This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
  • Which SBA loans are eligible for debt relief under this program?
    • 7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible.
  • How does debt relief under this program work with a PPP loan?
    • Borrowers may separately apply for and take out a PPP loan, but debt relief under this program will not apply to a PPP loan.
  • How do I know if I’m eligible for a 7(a), 504, or microloan?
    • In general, businesses must meet size standards, be based in the U.S., be able to repay, and have a sound business purpose. To check whether your business is considered small, you will need your business’s 6-digit North American Industry Classification System (NAICS) code and 3-year average annual revenue. Each program has different requirements so please visit https://www.sba.gov/fundingprograms/loans for more details.
  • What is a 7(a) loan and how do I apply?
    • 7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures and supplies. In the program, banks share a portion of the risk of the loan with SBA. There are many different types of 7(a) loans, you can visit this site to find the one that’s best for you. You apply for a 7(a) loan with a bank or a mission-based lender. SBA has a free referral service tool called Lender Match to help find a lender near you.
  • What is a 504 loan and how do I apply?
    • The 504 Loan Program provides loans of up to $5.5 million to approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. It is a good option if you need to purchase real estate, buildings, and machinery. You apply through a Certified Development Company, which is a nonprofit corporation that promotes economic development. SBA has a free referral service tool called Lender Match to help find a lender near you.
  • What is a microloan and how do I apply?
    • The Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers to start up and expand. The average microloan is about $13,000. These loans are delivered through mission-based lenders who are also able to provide business counseling. SBA has a free referral service tool called Lender Match to help find a microlender near you.
  • I am unfamiliar with SBA loans; can anyone help me apply?
    • Yes, SBA resource partners are available to help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.

TAX RELIEF:

  • Will there be any tax relief for small businesses?
    • Businesses that file as corporations can postpone estimated tax payments due after the date of enactment until October 15, 2020. Employers and self-employed individuals can defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. 
  • What about payroll taxes?
    • Employers would be able to delay the payment of their 2020 payroll taxes until 2021 and 2022, leading to approximately $300 billion of extra cash flow for businesses.
  • What about businesses suffering losses?
    • The bill also allows businesses to carry back losses from 2018, 2019, and 2020 to the previous 5 years, which will allow businesses access to immediate tax refunds.
  • What about encouraging investments in improvements?
    • The bill would fix cost recovery for investments in Qualified Improvement Properties, which will allow businesses that made these investments in 2018 and 2019 and receive tax refunds now.
  • Is there any relief on taxes or expenditures from prior years?
    • Yes, there are relaxed limitations on a company’s use of losses from prior years. NOLs are currently subject to a taxable income limitation, and they cannot be carried back to reduce income in a prior tax year. Congress now allows a loss from 2018, 2019, or 2020 can be carried back five years.
  • Is there any relief on interest for business expenses?
    • Yes, Congress temporarily increased the amount of interest expense businesses can deduct on their tax returns, by increasing the 30-percent limitation to 50 percent of the taxable income for 2019 and 2020.
  • Are there any tax incentives to retain my employees?
    • Congress created a refundable payroll tax credit of up to $5,000 for each employee on the payroll when certain conditions are met. The entity had to be an ongoing concern at the beginning of 2020 and had to see a drop in revenue of at least 50 percent in the first quarter compared to the first quarter of 2019

COUNSELING & TRAINING FOR SBA ASSISTANCE:

  • Will there be some form of counseling or assistance available?
    • If you, like many small business owners, need a business counselor to help guide you through this uncertain time, you can turn to your local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter. To find a local resource partner, visit https://www.sba.gov/local-assistance/find/.
  • Do I have to pay for counseling and training through SBDCs, WBCs, and MBDCs?
    • Counseling is free and training is low-cost with these partners.
  • What is a SBDC?
    • SBDCs are a national network of nearly 1,000 centers that are located at leading universities, colleges, state economic development agencies and private partners. They provide counseling and training to new and existing businesses. Each state has a lead center that coordinates services specifically for that state. To find out more about SBDCs, visit https://americassbdc.org/about-us/.

GOVERNMENT CONTRACTING:

  • What if I’m a government contractor?
    • If you are a government contractor, there are a number of ways that Congress has provided relief and protection for your business. Agencies will be able to modify terms and conditions of a contract and to reimburse contractors at a billing rate of up to 40 hours per week of any paid leave, including sick leave. The contractors eligible are those whose employees or subcontractors cannot perform work on site and cannot telework due to federal facilities closing because of COVID-19.
    • If you need additional assistance, please reach out to your local Small Business Development Center, Women’s Business Center, SCORE chapter, or SBA District Office. You should also work with your agency’s contracting officer, as well as the agency’s Office of Small and Disadvantaged Business Utilization (OSDBU).

SENIORS:

  • What does this bill do for older Americans and health services?
    • The bill provides additional flexibility for the Secretary of Health and Human Services (HHS) to ensure vital services are provided to our nation’s seniors, provides direct financial payments, and makes change to retirement provisions.
  • If I have no income or am on a fixed income, such as receiving Social Security, am I eligible for the direct payments in the bill?
    • Yes, there are no earned income or tax liability requirements to receive these rebate checks. The one-time tax rebate check of $1,200 per individual and $500 per child is available to all of those with valid Social Security Numbers and not a dependent.
    • The full rebate amount is available for those with incomes at or below $75,000 for individuals, $112,500 for head of household, and $150,000 for married couples. After an income level of $75,000, payments are incrementally decreased.
  • Will I continue to receive my Social Security benefit or Supplemental Security Income payments during the pandemic?
    • Yes. No matter if you receive your Social Security benefits through direct deposit or via mail, you will still receive your monthly payment. While Social Security Offices are closed to the public out of an abundance of caution during the Coronavirus outbreak, if you need help from the Social Security Administration, most services are still available online or over the phone.
  • Are there any changes to how my retirement savings is treated? 
    • Older Americans that are subject to mandatory minimum distributions from their retirement accounts will be able to keep their savings invested instead of being forced to cash out to draw on that capital without penalty, which would be suspended for 2020.
    • The bill also waives the 10% penalty on coronavirus-related early distributions from 401(k)s and IRAs, which applies to distributions made at any time during 2020.
  • Those over aged 65 and over are at an increased risk of serve illness from Coronavirus, what is being done to reduce my exposure to the virus?
    • The bill contains a significant expansion of telehealth by allowing patients to see doctors with whom they don’t already have a relationship, connecting folks on home dialysis with providers, and allowing federally qualified health centers and rural health centers to participate.
    • The bill also expands telehealth services for home health and hospice.
    • Overburdened physicians need relief, so nurse practitioners and physicians’ assistants will be able to prescribe home health services.
    • The bill ensures that Americans are able to use all tax-favored health care accounts, like HSAs and FSAs, to buy over-the-counter medicines tax-free without a prescription. In addition, high deductible health care plans with HSAs will now be able to provide coverage pre-deductible for telehealth services.
    • Easing the rules that permit access to telehealth and increasing provider capacity would help maintain continuity of care and free up time and inpatient resources to treat coronavirus patients.
  • Will Medicare cover a vaccine for the Coronavirus?
    • Yes. At this time, there is no vaccine for Coronavirus but Medicare Part B will fully cover a Coronavirus vaccine without any cost-sharing and drugs will be covered by Part D.

INDUSTRY RELIEF:

  • What does this bill do for businesses larger than 500 employees?
    • This legislation includes more than $500 billion in direct assistance to distressed industries
    • Direct lending to the following: $50 billion for passenger airlines, $8 billion for cargo airlines, and $17 billion for businesses critical to “maintaining national security.”
  • Are these bailouts?
    • No, these are direct loans to companies with restrictions.
  • What are the guidelines placed on this assistance?
    • Employee and executive total compensation may not exceed $425,000, stock buybacks are prohibited during the duration of the loan, and borrowers must maintain exiting payroll as of March 13.

HEALTH/MEDICAL PROFESSIONALS:

  • How does bill address the PPE and COVID-19 testing shortage?
    • The bill provides $16 billion explicitly for the National stockpile. This funding will go towards medical supplies, personal protective equipment and medicine.
  • How will Personal Protective Equipment (PPE) be distributed to hospitals and local providers?
    • The President has made the strategic national stockpile of PPE available to each state’s governor. Providers and hospitals that are running short on PPE, or need more, can place a request with their respective state health department to receive PPE from the strategic national stockpile. Each state has the authority to distribute the PPE.
  • How does the bill help individuals with mental health needs?
    • EXPANDS TELEHALTH SERVICES: Opens up expanded telehealth services in the Medicare program, allowing seniors across the nation to receive any current telehealth approved service (not just COVID related services), including mental health and substance abuse services.
    • IMPROVED CARE COORDINATION FOR PATIENTS WITH SUBSTANCE USE DISORDER: Ensures that health care providers can more effectively care for patients with substance use disorders (especially those with comorbid mental illness and other chronic diseases) by better aligning the treatment of substance use disorder medical records subject to 42 CFR Part 2 with HIPAA.
    • REAUTHORIZES THE EXCELLENCE IN MENTAL HEALTH DEMONSTRATION PROGRAM: Reauthorizes and expands Certified Community Behavioral Health Clinics, which provide critical services both in person and via telemedicine to tens of thousands of vulnerable Americans.
    • PROVIDES ADDITIONAL FUNDING TO THE SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION (SAMHSA): Provides a total of $425 million for SAMHSA to be used to support grants to address suicide prevention, mental and behavioral health priorities for tribes and tribal organizations, Certified Community Behavioral Health Clinics, and other emergency substance use disorder or mental health needs in local communities.
    • Specifically:
      • Certified Community Behavioral Health Clinics: $250 million to increase access to mental health care services.
      • Suicide Prevention: $50 million to provide increased support for those most in need of intervention.
      • SAMHSA Emergency Response Grants: $100 million in flexible funding to address mental health, substance use disorders, and provide resources and support to youth and the homeless during the pandemic.
  • Will emergency service providers be eligible for telehealth provisions?
    • Emergency service providers are still required to respond to the scene if they are dispatched through a 911 emergency call.
    • However, emergency service providers will be able to use funds from the Public Health and Social Services Emergency Fund in order to authorize treatment in place and alternative destinations of care besides the hospital for ground ambulance responders.
  • Why aren’t phone calls – which are low-tech and easier than video conferencing – eligible for telehealth reimbursement?
    • We understand that seniors may have issues with video conferencing for telehealth purposes, particularly in areas where there is a lack of broadband, especially rural areas. To make up for this discrepancy, the package includes funding to expand broadband services for the purposes of telehealth.
  • Is the VA eligible for relief funds?
    • The bill provides a total of $19.6 billion for the Department of Veterans Affairs and veterans programs. In addition, if VA is called upon by the federal emergency coordination council to care for non-Veterans, it will be reimbursed through the Public Health and Social Security Emergency Fund. Funding provided in the bill for the PHSSEF assumes VA will be reimbursed approximately $4 billion.
  • How will funds be distributed to hospitals, including rural hospitals?
    • $100 billion to hospitals and other health care providers.
    • The bill provides wide latitude to the Administration to determine program parameters and criteria for disbursement.
    • Additionally, the bill provides money for providers through Medicare:
      • Allows for accelerated Medicare payments. This will help hospitals, especially those facilities in rural and frontier areas, get the reliable and stable cash flow they need to help them maintain an adequate workforce, buy essential supplies, create additional infrastructure, and keep their doors open to care for patients.
      • Creates a 20 percent add on payment for inpatient treatment.
      • Delays the sequester until the end of this calendar year, which gives providers both money and certainty
  • Will nursing homes be able to access the same account as hospitals?
    • Nursing homes may be eligible, but exact levels are unknown. Significant parameters will need to be issued by HHS on the process, information, and eligibility
  • Can specialty hospitals, like children’s hospitals, access the same accounts as other hospitals?
    • Yes, but administrators of such hospitals must track in detail all losses that are attributed to the coronavirus pandemic and report them to the Secretary of HHS. The losses must be attributed to the coronavirus.
  • If I get a Coronavirus test but have a private health insurance, will I have to pay out of pocket for it?
    • No, all Coronavirus tests are fully covered without any cost-sharing.
  • If I get tested for Coronavirus and have Medicare or Medicaid, will I have to pay out of pocket for it?
    • No, all Coronavirus tests are fully covered without any cost-sharing.
  • If patients don’t have insurance, can they still receive a Coronavirus test without paying for it?
    • Anyone can receive a coronavirus test with no cost-sharing, no matter your insurance status.
  • I use my local community health center. Will I be able to get tested there?
    • It is recommended to call your community health center to see if they are actively testing individuals experiencing symptoms. Community health centers have received additional funds and should be available to provide medical services pending local health situations.
  • Does the recently passed legislation allow me to use my Health Savings Account (HAS) or Flexible Spending Accounts (FSA) for additional pharmaceutical products?
    • Individuals with a high deductible health plan who have a HSA can use it to cover telehealth services prior to reaching your deductible. Individuals with a HSA or FSA can now use those accounts to purchase over-the-counter medical products without a prescription from a physician.
  • I have prescription drug benefit under Medicare, but my prescription is running out. I want to practice social distancing without having to go get my refill as often. Can I receive a longer refill if my doctor doesn’t order it?
    • Medicare Part D plans can now provide a 90-day supply of prescription medicine if you request it to be filled.
  • Can pharmacists administer coronavirus tests?
    • While it depends on the state administering laws, pharmacists do not currently have access to coronavirus tests.

STATE AND LOCAL GOVERNMENTS:

  • Is there relief funding for state and local governments?
    • Yes, Congress established a $150 billion Coronavirus relief fund specifically for states and local government to address the spread of the coronavirus.
  • Who is eligible?
    • States, eligible local government, Tribal governments, DC, and the territories are eligible for funding.
  • How is the funding distributed?
    • The Funding is paid based on a state share of the total population, subtracting any amounts paid to local governments.
    • No state can receive less than $1.25 billion.
    • $3 billion is reserved for the District of Columbia, Puerto Rico, Virgin Islands, Guam, Northern Mariana Islands, and American Samoa. The amount for each is based on population.
    • $8 billion is reserved for Tribal governments after consultation.
  • What is the timing for the distribution of funds to states?
    • Funds must be paid within 30 days of enactment.
  • How is funding allocated to states?
    • States receive an amount equal to their relative population, deducting any amount that may have been paid to units of local government within the state who applied for funding independent of the state.
  • What are the criteria for local governments?
    • A unit of local government is defined as any county, municipality, town, or other unit of general government with a population greater than 500,000.
  • If my local government’s population is under 500,000 people, how will they receive money?
    • Smaller units of local government will need to work with their states to access funding.
  • How much can local governments (>500,000 people) receive if they apply directly?
    • In no event will the total amount allocated directly to local units of government exceed 45% of the state’s allocation.
    • A local government may receive 45 percent of the amount provided to the state times its relative population to the state.

Ex: (Town Population/State Population)      X            45%*(total amount for state)

  • How is the population metric determined?
    • It is the most recent year for which data is available from Census Bureau.
  • What can the funds be used for?
    • Funds may only be used to cover the costs associated with necessary expenses incurred as a result of the coronavirus diseases 2019 public health emergency, not accounted for in the most recently approved state budget, for calendar year 2020. The fungibility of certain aspects of public budgeting and the general sorts of revenue shortfalls that are expected in the current economic climate makes it unclear how restrictive those limitations will be in practice.
  • Are there other programs that states and local governments can take advantage of?
    • Yes, hundreds of billions in funding in the CARES Act goes out through existing grants to support state, local, tribal, and community grantees.
    • Some programs included within the appropriations division are:
      • Community Development Block Grants – $5 billion
      • Homelessness Grants – $4 billion
      • Transit Agencies – $24 billion
      • Airports – $10 billion
      • Assistance to Tribal Communities (Indian Health Service, Bureaus of Indian Education/Affairs, and Food Distribution) – $1.7 billion
      • Disaster Relief Fund – $45 billion
      • Emergency Food and Shelter Grants – $200 million
      • First Responder (FIRE) Grants – $100 million
      • Emergency Management Program Grants – $100 million
      • Byrne Justice Assistance Grants – $850 million
      • Economic Assistance Development Grants – $1.5 billion
      • Manufacturing Extension Partnership Grants – $50 million
      • Child nutrition – $8.8 billion
      • Supplemental Nutrition Assistance Program – $15.8 billion
      • Community Services Block Grant – $1 billion
      • Low Income Home Energy Assistance Program – $900 million
      • Child Care and Development Block Grant – $3.5 billion
      • CDC Funding for State Public Health Departments – $1.5 billion
  • If local businesses are asking about assistance programs, where should I point them?
    • The bill contains hundreds of billions of dollars in direct assistance to small businesses. This is administered primarily through the Small Business Administration and your private lenders.

OTHER INFORMATION:

  • Does this bill provide individuals more compensation on Unemployment Insurance than they receive via employment?
    • The enhanced UI is designed to keep as many as whole as possible. Some may temporarily receive more benefit than previous payment – though that number is very small relative to the number of people who will be filing UI claims in next few weeks.
  • Is Planned Parenthood eligible for SBA loans and grants?
    • No, Planned Parenthood is not eligible for SBA grants or loans.
  • What about student loans?
    • The federal government paused repayment requirements for 6 months for many borrowers and is line with the Trump Administration efforts to pause collections for 6 months on defaults.
  • Did Congress give itself a pay raise in Phase 3?
    • No, no Members of Congress will receive an increase in compensation as a result of this relief package. The money included for the House of Representatives will be used for ensuring the House can continue to operate on behalf of the American people, including purchasing equipment for teleworking and the IT services to support it.