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As the coronavirus pandemic worsens across the state and Alaskans face more restrictions on their activities, work and travel, many are facing uncertain prospects and loss of income. Local business owners who have closed aren’t sure when they’ll be able to re-open, presuming they can weather the closure. And with a new month about to begin, many are worried about utility bills, rent or mortgage payments and even groceries. So what kind of relief is coming to Alaskans, and when? The answer depends on who you are and what you do — and some components of aid packages at the state and federal levels are still being worked out.
Federal aid: Personal checks, business bailouts
Aid checks: The most widely discussed aspect of the $2 trillion federal COVID-19 aid bill is the direct aid to individual Americans. Most adults will receive a check for $1,200 (those who earned more than $75,000 last year — or couples making more than $150,000 — will receive less, and adults making $100,000 or more won’t be eligible), as well as $500 for each child in their household who is age 16 or younger. According to Treasury Secretary Steven Mnuchin, those checks should make their way to Americans within three weeks.
Unemployment expansion: Those unable to work or whose circumstances are significantly altered by COVID-19 are eligible for expanded aid, with a variety of conditions. The federal aid extends unemployment aid by 13 weeks and broadens eligibility. Unfortunately, tens of thousands of Alaskans are in the same boat, so processing time at the state level is likely to take longer than usual.
Relief for students, renters and homeowners: Payments on federal student loans will be automatically suspended until Sept. 30, and loan interest “shall not accrue” during that time. The bill also enacts a national 120-day moratorium on evictions of renters whose landlords have mortgages owned or backed by Fannie Mae, Freddie Mac and other federal entities. Homeowners whose mortgages are financed by those same entities may also be eligible for relief, including a moratorium on late payment fees, no delinquencies reported to the credit bureaus, and a suspension of foreclosure and other legal proceedings.
Business help: Small businesses are eligible for immediate grants of up to $10,000, and $350 billion in forgivable loans will also be available. There are many conditions related to business aid, but the Small Business Administration’s Disaster Loan Assistance website features a relatively streamlined application process that helps lead business owners through the process. Immediate assistance will be administered through local banks, so contacting those banks to see what’s available may also be helpful to get the ball rolling.
State aid: Unemployment boosts, eviction moratoriums
Unemployment aid: The Legislature has passed a bill expanding unemployment eligibility to help the thousands — likely tens of thousands — of Alaskans who have lost work for reasons related to COVID-19. Alaskans would have to lose at least 25% of their working hours to become eligible for some unemployment benefits. The bill also eliminates a one-week waiting period for unemployment insurance benefits, and payments are boosted slightly for those caring for children or dependent adults.
Eviction and utility cut-off moratorium: State lawmakers passed a coronavirus relief bill that contains a moratorium on utility shutoffs and evictions, provided that the person seeking the moratorium can establish that they are unable to pay because of COVID-19-related hardship. Additionally, major internet service providers have pledged that they won’t end service to those unable to pay because of the pandemic.
Emergency loans: At an emergency meeting Friday, the Alaska Industrial Development and Export Authority approved measures that would let it provide loan guarantees to Alaska businesses in need of immediate aid, issuing the loans through the banks from which businesses are already borrowing. An application process for the emergency loans hadn’t yet been set up as of press time, but AIDEA should have more information for affected businesses in the coming days.
Budget uncertainty: Much of the state’s additional aid, such as grants to communities affected by lost cruise ship revenue, was still in limbo Saturday. That’s thanks to some political gamesmanship by minority Republicans in the House, who refused to vote for coronavirus aid because they feel it would force them to give up political leverage in their fight for a tighter spending cap and a larger PFD draw. Their approval is necessary because a significant portion of the funding is coming from the state’s Constitutional Budget Reserve, which requires a yes vote from 75% of legislators.
Under ordinary circumstances, the horse-trading surrounding CBR votes is distasteful but not a matter of life and death; typically, members hold out for specific budget priorities, often minor ones that help their district or region. In this case, however, the withholding of votes for funds that would help the state buy needed medical equipment and assist failing businesses is inexcusable. The House minority’s members may think they’re taking a principled stand, but the practical implication of their holding out is that the state is burning crucial time when it could be preparing for the worst effects of the COVID-19 pandemic. They have accused majority members of playing politics in tying coronavirus relief in with other budget items, but they’re the ones holding up the process. Alaskans should let them know that their behavior is unacceptable — and if they don’t relent, voters should let them know again at the ballot box in November.