COVID-19 Financial Relief Guide

With the outbreak of the COVID-19 virus, more and more cities, states and countries are going into total lockdown. With the infection spreading and the USA announcing more and more cases every day, people are advised to stay at home to prevent the virus from spreading even further.

While this might not be an issue for those that can take their work at home, it is not an option for everyone. Some people that are working in industries that require physical proximity (e.g. entertainment, venues, supplies, etc.) do not have that luxury. When you send them home, you are practically asking them to remain unemployed indefinitely – which can be rather problematic if you are there on a visa and have bills to pay.

What can you do when your workplace is no longer bringing the profit you need? Can you do anything to ensure you won’t be thrown out of your house – or that you won’t starve? In this case, COVID-19 financial relief might help you out – but you also need to know what to do next.

Federal Relief Options and Assistance

When a disaster like this appears, the government provides federal relief to those that are in serious need of it. With the coronavirus travel ban, some people cannot even go back to their own countries – and if they do, they risk losing their visa.

As a result, all they can do is stay on lockdown and hope that unemployment will not kick them out of their houses. However, if you do your research right, you will see that there are several relief options that you may be eligible for.

$100 Billion COVID-19 Aid Package

With more and more people going into forced unemployment, Donald Trump signed the $100 billion COVID-19 aid package on Wednesday, March 18. This package means to offer free coronavirus tests for those that require it, but also to act as insurance for those that are on sick pay, family leave, or unemployed.

As per the claims of Mitch McConnell, Senate Majority leader, “This is literally the worst time in living memory to pile even more burdens and costs onto small businesses, which are themselves fighting to stay alive, unless we back it up with major assistance.” This package is a result of those thoughts, in order to back up the future economy of the country.

$1 Trillion Economic Stimulus

In order to help with the economic crisis, the Senate Republicans have also rolled out a $1 trillion economic stimulus package. This proposal means to aid those that are affected by the coronavirus fallout.

This will provide direct financial help for those who lost their jobs because of the virus, stabilizing the company and protecting their jobs. It also offers quick relief for those who have a small business, and are dangerously close to filing bankruptcy due to the COVID-19.

New 2024 Tax Deadline

Taxes represent one of the most pressing matters, and it can be quite inconvenient to pay them all right now – particularly when you are not making any actual profit. This is why the IRS extended the tax filing deadline to the 15^th of July (initially on the 15^th of April). Keep in mind that you may want to check with the government website first, and follow the directions that they made public for your tax returns.

Eviction and Foreclosure Moratorium

The federal government also made public a national eviction and foreclosure moratorium for those who have mortgages backed by Freddie Mac and Fannie Mae enterprises, along with the federal housing administration. If you do not qualify for the moratorium, you might want to ask whether you can skip a payment or two without being penalized (obviously, you will pay them back later on).

Other Ways to Prepare

Receiving financial aid from the government is not the only way for you to prepare. As long as you prepare beforehand, you should be able to keep yourself afloat even if you are temporarily out of work. Here is what you can do now so that you can have an easier “tomorrow.”

Reduce Spending and Expenses

If you want to properly prepare for the following period, you might want to reduce your expenses. If you do not necessarily need something, then you should not buy it. You’re on lockdown – which means you won’t need at this moment to purchase those expensive shoes or buy anything too fancy.

With more and more restaurants and fast foods shifting to delivery mode, it might be tempting to order in every few days to stay fed. But why not take advantage of this free time and actually cook your own recipes? Not only will it help you pass the time, but it will also help you save money on food.

Work with Your Lenders

Nowadays, more and more lenders are offering flexible payment programs for those that have borrowed from them. For instance, some banks and private lenders have bumped the payment schedule so that people would not have to pay anything for the next three months.

This is quite convenient, particularly when the lockdown is not allowing you to make any profit. This is why you should talk to your lender. It is very likely that they will understand the situation and will be willing to temporarily put your payments on pause – at least until things calm down.

Reduce Student Loan Payments

During this crisis moment, more and more students on an F1 visa are also affected. Since there is no income from parents or working (graduate) students, you also find yourself in the impossibility to make the payments.

If you cannot completely bump the payments, talk to your lender to see if you can reduce the payment amount. If you don’t have to pay as much, the financial after-effect will not hit you that hard.

Start Building Emergency Savings (If You Can)

It may seem impossible at this point, but if you have the possibility, try setting aside as much as you can. Let’s say that you are not yet at the point of a full lockdown – but you can never know what the future might bring. Even a work-from-home job may seem uncertain at some point – because you can’t be sure whether your contacts or suppliers may still be available in the future.

For as long as you can, and as long as you have income, try setting aside as much as you can. This should be easier to do now, since pretty much every bar, restaurant, or place of entertainment is closed. Take advantage and save up that money. Later, you will be thankful for this.

Final Thoughts

We don’t know for certain how this situation will unfold in the future. However, as a responsible person, it is best to stay indoors as much as possible – and be safe. In the meantime, you should focus on what’s important, and take all the steps necessary to have a comfortable life (along with a surviving business).

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

See author's posts