Covid 19

Federal Stimulus: What the Package Means for Burlington

CDBG Burlington Funding: Re: Emergency approps (ex. CDBG amount for Burlington and new flexibility):

  • At this point we expect Burlington to receive at least $450,000 of additional CDBG funds, perhaps significantly more depending on HUD's formula for allocating a $2B portion of the package. HUD must allocate these in the next 30 days and the funds will be much more flexible in their uses and requirements.
  • We're in close contact state and federal colleagues to understand how the significant increase in State CDBG funding will benefit Burlington
  • Although we don't typically receive Emergency Services Grants (HUD funds will provide relief to people experiencing homelessness) directly, State resources will increase and we expect homeless individuals and families in Burlington will benefit from these funds. Depending on the formula that HUD uses, Burlington may also be able to receive these funds directly to provide relief.

UI and Direct Payments -

  • Unemployment Insurance ($260 Billion)
    • Additional $600 in benefits on top of weekly benefit amount - totaling nearly 100% of full salary - through 7/31
    • Expanded coverage through 12/31
      • Extension of 13 weeks for a total of 39 weeks of benefits
      • Expanded eligibility to include part-time, gig economy, and independent contractors
  • Direct Payments to Working Americans
    • $1200 to every adult with a Social Security number, and $500 per child 16 or under
    • Single payment within 3 weeks with direct deposit, longer if by mail
    • Full payment for:
      • Single earning $75,000 or less (partial to max of $99,000)
      • Married couples with no children earning $150,000 or less (partial to max of $198,000)

Small Business Loans and Assistance

  • Paycheck Protection Program $350 billion for Paycheck Protection Program to provide small businesses with zero-fee loans with up to $10 million. Up to 8 weeks of average payroll and costs forgiven if business retains employees and salary levels. Principal and interest deferred for a year and borrower fees waived.
  • Economic Injury Grants - $10 billion for advance of $10,000 to small business and nonprofits that apply for SBA economic injury disaster loan within three days of applying for a loan. EIDL loans up to $2 million with interest rates up to 3.75% for companies and 2.75% for nonprofits, and principal and interest deferment up to 4 years. Loans can pay expenses that could have been met had disaster not occurred, including payroll and operating expenses. No repayment of grant even if applicant does not receive EIDL loan.
  • Debt Forgiveness - $17 billion for immediate relief to small businesses with standard SBA loans, to cover principal interest and fees for 6 months. Also covers new SBA borrowers for 6 months from date of signature of the bill.