On March 27th, President Donald Trump signed a $2 trillion stimulus package into law. The stimulus package is designed to provide relief for Americans who are struggling under the weight of the countrywide shutdown over concerns about the spread of the novel coronavirus.
While $2 trillion dollars is a lot of money, it’s important to know where that money is actually going to go, the impact it will have on the average American citizen, and how it will affect US real estate in the months to come.
What’s in the $2 Trillion Stimulus Package?
As of writing, the $2 trillion stimulus package is the largest aid measure in US history. It provides support for American citizens and businesses in a few notable ways:
-90% of Americans Will Receive a Check From the Government:
The most talked about part of the stimulus package is the checks Americans will receive in the coming months from the government. With 90% of Americans eligible to receive these checks, individuals could see up to $1,200 deposited in their bank accounts. Click here to see a full breakdown of the check payments based on income and marital status.
-Unemployment Benefits and Insurance Have Expanded
With businesses across the US forced to temporarily halt and suspend their operations, many people have suddenly found themselves unemployed. In an effort to aid the millions of workers who suddenly have no income, unemployed workers can now potentially receive up to 39 weeks of unemployment benefits. The expansions in this area have also allowed groups like freelancers and gig workers to also claim unemployment.
-Small Businesses Are Eligible for New Loan Programs
Another key part of the stimulus package was the creation of new loan programs that small businesses can apply for. The Economic Injury Disaster Loan program is set to provide businesses with a loan of up to $10,000 that would be fully forgiven so long as the businesses continued to pay their employees and all necessary terms were met. Another new loan program, the Paycheck Protection Program (PPP) also allows businesses to apply for loans to help keep their employees on payroll. These loans will need to be partially repaid under the terms of the loan. Click here to see a breakdown of these two programs.
-Some Big Companies Will Receive Cash Loans
Along with benefits for small businesses, the stimulus package included cash for industry-specific loans for big businesses. Most notably, airlines and hotels will stand to benefit from these provisions.
-Increased Aid for Struggling Hospitals
Aid dollars for the beleaguered healthcare system were a critical part of this stimulus package. As news outlets continue to carry reports that hospitals lack the necessary supplies to treat coronavirus patients, like ventilators and personal protective equipment (PPE), this funding is an important step in winning the fight against the virus.
Who Will Benefit from the Signing of the Stimulus Package?
The $2 trillion stimulus package is comprehensive in its provisions and as stated above, 90% of Americans are expected to qualify for checks from the government. Though with a population of over 300 million American people and nearly 17 million out of work, it may not be enough to take the sting out of the crisis.
How Will the $2 Trillion Stimulus Package Affect US Real Estate?
While the recent stimulus package doesn’t include any direct provisions for real estate directly, the fact that so many people will receive aid from the government is a positive. $1,200 per person may not be a huge amount, but for some it could be the difference between making ends meet or not at all.
We don’t know how long the country will continue to be shut down and how many small and large businesses will ultimately go under as a result of this crisis. But this initial support from the government for the average worker and the small business owner could go a long way to ensuring people can keep up with their mortgage payments and those who were looking to buy a home this year can keep moving forward with their plans. We believe that the housing market as a whole, and particularly here on Long Island, was in a great place before the outbreak of the coronavirus pandemic. This coupled with the governmental support we’re seeing leads us to conclude that while the housing market may experience an understandable downshift in the months to come, we believe it will bounce back quickly to pre-pandemic levels once the country goes back to work.
Looking for specific information about how the Long Island housing market is doing in your neighborhood? Reach out to us to receive a custom market report, click here to see the latest data for Nassau and Suffolk counties, or request your free online home valuation report here.
The Pesce & Lanzillotta Team, at BHHS Laffey International Realty