On December 21, 2020, Congress passed a $900 billion stimulus package to help Americans struggling with the impacts of COVID. Known as the Consolidated Appropriations Act, 2021, it was subsequently signed into law by President Trump on December 27, 2020. With COVID-19 levels hitting record-setting highs, the stimulus is well-recognized by economists as a crucial follow up to the March Coronavirus Aid, Relief, and the Economic Security (CARES) Act.
The stimulus has several potentially promising components for those in the Real Estate market, including:
- Relief for tenants and landlords, with $25 billion in emergency rental assistance included, paid to states and local governments. Tenants who meet eligibility requirements can apply locally for relief. If approved, state and local agencies will pay past and currently due rent directly to their landlords. These funds will allow tenants to avoid eviction (the current national moratorium now expires January 31) while permitting landlords to collect much-needed rent (in some cases, landlords have not been paid since the start of the pandemic).
- $284 billion dedicated to the Paycheck Protection Program (PPP). These funds will allow small businesses (less than 10 employees) to have priority over larger businesses. New categories of employers – such as 501(c)(6) organizations and local media – are also now eligible. Those previously eligible can receive additional funding – up to $2 million. The PPP part of the stimulus may allow many businesses to fund overhead (including rent) and plan long term for other real estate investments.
- The Secretary of the Treasury will invest up to $9 billion in community infrastructure under the Small Business Administration’s Emergency Economic Injury Disaster Loans (EIDL). Under this provision, community lenders will receive incentives for lending to businesses and individuals impacted by COVID-19. These investments are potentially promising for those in the Real Estate market who have been hesitant to invest given the uncertainty of the market.
Feel free to reach out to us to discuss your Real Estate inquiry. Our team is well-versed to navigate the intricacies of the COVID-19 legal landscape.
ABOUT THEODORA STRINGHAM
tstringham@offitkurman.com | 703-745-1849
Theodora Stringham assists individuals, businesses, and organizations with growing successfully while minimizing liability. Focusing on real estate and personnel needs, Ms. Stringham executes sustainable plans for real estate development and employee matters. She provides comprehensive representation for everyday growth issues, including, but not limited to, re-zonings, site plan approvals, eminent domain/valuation concerns, employment discrimination, and disciplinary issues. Ms. Stringham’s scope of representation ranges from identifying potential liability and providing counseling/trainings, all the way through representation at trial.
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Author: Theodora Stringham, Esq.
Articles have been Reprinted with permission from the charlotte observer and Mike Hunter.
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