On March 27, President Trump signed a $2.2 trillion stimulus package, the largest in U.S. history, to help stymie the economic downturn brought on by the COVID-19 outbreak. The package includes everything from direct cash payments, to expanded unemployment benefits, small business loans and more.
This package is different from the one passed in 2008 in that Congress has emphasized more aid toward workers, families and small businesses. Whereas the last stimulus package provided a much-needed lifesaver to larger corporations like banks. However, airlines are receiving substantial assistance from this current package as they’re experiencing monumental losses. There’s likely no business, big or small, that won’t be negatively impacted by this crisis, in the end.
As a majority of storage operations in the country are small to medium sized business, operators can stand to benefit from this current relief package. Plus, there are already murmurs on Capitol Hill of possibly more relief in the coming months. But nothing is official in that regard.
A chunk of this stimulus package will direct-deposit into taxpayers’ bank accounts or arrive in the form of a check by mail. Direct payments will be up to $1,200 per adult and $500 for each child. The $1,200 scales down for individuals earning $75,000 a year and phases out completely for anyone earning more than $99,000. For couples the amount scales down for those earning more than $150,00 and phases out completely for those earning more than $198,000 a year.
Unemployment benefits have also received a huge boost from this bill in terms of benefit value, who is eligible, and how long people can receive benefits.
Also, the IRS has officially delayed Tax Day to July 15. So, if you haven’t filed your taxes yet you still have a few more months.
You can read more about the full package breakdown here.
Now, some or most of the elements of the package won’t necessarily benefit storage operations directly. But, they could greatly benefit any of your tenants that have fallen on difficult times as a result of this crisis. And, in our eyes, that can only be good news.
Small Business Relief
Now, this portion of the relief package could benefit storage operators more directly. To qualify for this assistance, a business must have 500 or fewer employees. So, outside of the biggest storage companies out there like Real Estate Investment Trusts, most operators across the country would qualify for small business relief.
Provisions for small business relief include emergency grants of up to $10,000 to help cover immediate operating costs related to COVID-19. Existing loan relief programs which can cover up to six months of payments for small businesses already utilizing a Small Business Association loan. And payroll protection, which are loans of up to $10 million per business to help cover payroll, rent, existing debt and other operational costs. These payroll protection loans can be forgiven, provided the borrowing business keeps their employees employed through the end of June.
This bill is intended to give businesses like those in the storage industry the means to weather this storm. We encourage any operators who have been impacted by this crisis to explore these options with guidance from a lawyer. To learn more about the small business relief you can visit the SBA’s website, here.
For an even more in-depth look at how storage operators can benefit from the stimulus package, you can read this article from SSA.
This is an unprecedented crisis that requires an unprecedented response. This stimulus package from the US government will help countless people in the weeks ahead as we all continue to navigate these uncertain times. And, as we do, we’ll continue to bring our perspective on the unfolding crisis and any news we feel you stand to gain from.
As always, we hope you’re continuing to stay safe and healthy.