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What stimulus bill means for NYC tenants

Mitch McConnell (Credit: Drew Angerer / Getty Images)

Breaking down the $2 trillion stimulus bill and analyzing what it means for tenants in NYC. 

  • Extended unemployment benefits: Current New York State Unemployment Insurance ranges from $104 to $504 per week. The stimulus package adds federal benefits, which will provide workers with an additional $600 per week for four months. Those who need extra help will also be able to extend the unemployment period from 26 weeks to 39 weeks. This means that an unemployed waiter who earned $52,416 last year will receive $4,416 per month.
  • Direct payments: Americans will receive a one-time direct deposit of up to $1,200, and married couples will get $2,400, plus an additional $500 per child. The payments will be available for incomes up to $75,000 for individuals and $150,000 for married couples, Axios noted.

Takeaway: The big unknown is the macro-economic outlook, and the extent of the downturn. For the stimulus package to prevent lasting economic hardship, there must be a V-shaped economic recovery where businesses and consumers return to their former state of robust health after the virus is ultimately contained. A more realistic, L-Shaped Recovery, has the potential to do serious damage especially if cracks in the secondary lending market are exposed.

On the business component of the plan:

  • Large corporations: $500 billion will be allotted to provide loans, loan guarantees, and other investments, overseen by a Treasury Department inspector general. These loans will not exceed five years and cannot be forgiven.
  • Small businesses: $350 billion is being dedicated to prevent layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven. 

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