With around 15,000 coronavirus cases statewide, Indiana has been hit hard by the COVID-19 outbreak. People have been ordered to stay at home since March 24, and non-essential businesses have been closed temporarily. Thousands have been laid off and furloughed from their jobs due to these restrictions. As a result, Indiana has developed some relief programs designed to help small businesses and individuals reeling from the economic toll of the coronavirus pandemic. If you’re looking for individualized help with your finances, it may be a good idea to talk to a financial advisor in your area.
Indiana Coronavirus Relief for Individuals
Indiana has implemented a number of coronavirus-related relief programs built to help individuals and families. If you’re in need of financial assistance, food or have lost your job, Indiana has some ways of helping.
Though the state hasn’t expanded or extended unemployment benefits, they have given anyone filing for unemployment the option to file online, and the state encourages citizens to do so.
Through a partnership with the federal government, Indiana has expanded access to food banks and pantries through what it calls Disaster Household Distribution. This program is effective through May 14, 2020. Each household that receives food through this will get a variety of foods in a 25-pound box. The state will use over 250 distribution sites, including several mobile sites, to distribute food.
Indiana Coronavirus Relief for Small Businesses
Many of Indiana’s businesses have been adversely affected by the coronavirus pandemic. While most resources for these businesses lie at the federal level, there is one state relief program in Indiana.
Indy Chamber Rapid Response Loan Fund
The Rapid Response Loan Fund is offered through the Indy Chamber’s Business Ownership Initiative (BOI). These loans are available to Indiana businesses that need less than $25,000 in loans as a result of the coronavirus pandemic. These loans can be used to cover a wide range of expenses and they are available to an incredibly wide range of businesses.
There is no application fee, no prepayment penalties and no minimum credit score requirement for this program. Loans come with a 3.75% interest rate. Farming enterprises, religious organizations, charities and businesses that derive more than one-third of their annual revenue from legal gambling activities are not eligible for these loans.
Federal Coronavirus Relief for Individuals
There are a number of federal-level coronavirus relief programs that are available to help individuals in need of assistance during this global pandemic. One of the central provisions in the Coronavirus Aid, Relief and Economic Security (CARES) Act is the individual stimulus checks that provide individuals with up to $1,200 as a one-time cash payment, with married couples getting up to $2,400. Families will also receive $500 per child under 17 years old. Anyone with an adjusted gross income (AGI) of less than $75,000 per year will receive the maximum payment, and the cutoff for receiving any money is income of over $99,000. Anyone in between those amounts will receive a reduced check.
The CARES Act also includes enhanced sick and family leave benefits, as well as expanded unemployment benefits. Workers who have lost their jobs due to the pandemic may claim unemployment for up to 39 weeks. Those claiming unemployment can also receive an additional $600 per week through July 31, 2020. So while Indiana has not expanded its own unemployment benefits, unemployed residents can take advantage of these new expanded benefit courtesy of the federal government.
There are a number of other federally mandated programs designed to help individuals through this crisis. These include an extension to the federal income tax deadline, rent and mortgage relief, federal student loan relief and more.
Federal Coronavirus Relief for Small Businesses
While Indiana only has a single state-level coronavirus relief program for small businesses, the federal government has several resources for those businesses to take advantage of. The largest program is the Paycheck Protection Program (PPP). Businesses with less than 500 employees can borrow up to 2.5 times their payroll, with the exception of employee salaries that are $100,000 or more annually. These loans are designed to help companies weather the economic storm caused by the coronavirus, and a maximum of $10 million in loans will be granted to any one company. Companies can apply for a PPP loan through a local lender.
Another federal option is the Economic Injury Disaster Loan (EIDL) program. EIDLs are administered by the SBA and provide up to $2 million to companies to cover operational costs that they may not be able to cover on their own at this time. The interest rate on these loans is 3.75% for businesses and 2.75% for non-profits, and loan terms range up to 30 years. Businesses that apply for EIDLs may also receive a $10,000 advance grant to help cover costs in the short term while the loan processes.
The federal government provides other programs as well, including the 7(a) Loan Program, the Express Loan Program, the 504 Loan Program, the Community Advantage Loans Program and the employee retention tax credit.
Indiana has been hit hard by the coronavirus pandemic, and businesses, families and individual across the state are feeling the adverse economic effects. As a result, the state is working to keep its citizens informed, while providing some in-state relief resources and programs. Even if you’re not eligible for help at the state level, there are plenty of federal resources if you’re in need of assistance due to the COVID-19 pandemic.
Tips for Managing Your Money
- A financial advisor can help you figure out how to best take care of your finances during these trying times. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors, get started now.
- If you have outstanding loans that you’re worried about being able to pay back due to the COVID-19 pandemic, you’re not alone. Banks are working with customers to help soften the blow of a lost job or another stream of income.
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