Summary List Placement
Many people who have lost work are set to lose important unemployment benefits on December 26, 2020, when the pandemic emergency unemployment and extended benefits under the CARES Act expire.
Data from The Century Foundation estimates that about 12 million workers will lose these benefits when the programs expire.
With no end to the pandemic in sight, other government agencies are the next best place to turn for assistance with student loan payments, mortgage loan forbearance, and even help with groceries.
Government programs like income-based repayment for student loans, mortgage forbearance, Small Business Administration loans, SNAP benefits, and more can help.
Sign up for Personal Finance Insider’s email newsletter here »
Paying for everyday expenses has become a challenge during the coronavirus pandemic for those who have lost work.
The CARES Act helped millions facing unemployment with an extra $600 per week benefit that expired at the end of July, and extended typical unemployment benefits to 39 weeks, adding to the 26-week period that’s usually available.
But, the CARES Act’s provisions for pandemic-related unemployment benefits are set to expire on December 26, 2020, leaving about 12 million Americans without assistance, according to estimates from The Century Foundation. Some benefits will still be available through state unemployment offices, but the full amount may not be available to everyone.
For anyone looking for assistance after other benefits expire, there are several government programs to help with expenses, from food and groceries to student loan payments.
CARES Act mortgage relief
Who it’s for: Homeowners with a federally-backed mortgage, including anyone who bought their home with an FHA loan, VA loan, or another federal mortgage loan program
What’s offered: 180 days of mortgage forbearance, with the possibility of extension to 360 days
How to apply: Apply for an initial forbearance through your mortgage loan servicer by the December 31, 2020 deadline
Mortgage forbearance options are available through the CARES Act until December 31, 2020 for people with federally-backed mortgages. If you haven’t yet requested forbearance, it could help you into next year. People who are eligible can apply until December 31, 2020 for a forbearance of up to 180 days. Contact your servicer to learn more about forbearance options and what’s available to you.
Learn more about federal mortgage forbearance options during the coronavirus pandemic »
Small business loans
Who it’s for: Small business owners, including freelancers and sole proprietors who were in business prior to January 31, 2020
What’s offered: A low-interest loan for up to six months of what would have been six months’ worth of working capital (including expenses such as “continuation of health care benefits, rent, utilities, and fixed debt payments,” according to the SBA.)
How to apply: Through the Small Business Association’s website
Freelancers and independent contractors are expected to be among the most affected groups when the CARES Act provisions expire at the end of 2020. While traditionally-employed people have the option of filing for state unemployment benefits, most states only offered benefits for freelancers and …read more
Source:: Business Insider