Part of a series. Covers the additional funding being given to states to supplement unemployment.

 

The Coronavirus Aid, Relief, and Economic Response (CARES) Act includes additional funding for states to supplement their unemployment programs.

 

Please note:  before taking action based on this information, please do your own research, including speaking with your CPA, financial advisor or planner, employer, loan servicer, state unemployment office, and heck, maybe even a priest or shaman.  My goal is to share my best understanding and to be of service.  I hope you find this helpful.

On February 20th, 2020 the first of a series of U.S. stock market drops began in response to the global pandemic and concerns about the effect the disease would have on economic activity worldwide.

On March 21, 2020, an unprecedented spike in first time jobless claims was announced by the Labor Department.  There had been 3.2 million first time unemployment claims.  The single largest week record before then was for 700,00 back in 1982.  Check out this article from Business Insider for details.

On March 27th, the CARES Act was signed.  This law provides for loans to corporations, small business loans, household payments, unemployment insurance, tax deferrals and deadline extension, and other funds.  Most of the “goodies” we are interested in are in this act.

This article covers the additional funds made available to the states to supplement their unemployment programs.  Details are outlined below.

 It is important to remember unemployment programs are run by the Department of Labor of each individual state.  Those departments determine who is eligible for unemployment.

The CARES Act made funding available for the following: 

  • Extra federal help – if unemployed or partially employed due to COVID19 (layoffs, furloughs, reduced hours)
  • Includes independent contractors, self-employed, and individuals with limited work history
  • Covered if you had to quit job to care for someone with coronavirus, child due to school closings, or quarantine order
  • State funded benefits ($400/wk national average), plus federal supplement ($600)
  • Payments can be made separately, but have to be in the same week
  • May need to complete an additional form to get the supplement
  • Up to 26 weeks normally, +13 weeks federally funded
  • Typically takes 2-3 weeks to apply, then 1 week waiting period. CARES Act requests the waiting period be waived.

Here are some frequently asked questions:

Can I apply for the SBA loans and for unemployment?

If you are applying for a small business loan, you are not considered to be unemployed.

Can I apply for unemployment because my side hustle ended?

If you have a full time job you are not considered to be unemployed.

And a frequent complaint:

“I tried to apply for unemployment and the website crashed/I haven't heard back/etc.”

Yes. 

I think it is fair to assume that IT teams in their testing never anticipated this sort of a spike in demand, so rather than being a conspiracy, it may just well be that systems are slammed. 

When staffing departments, a spike in demand like this was also likely not anticipated.  The folks working these organizations are overloaded, and just like all of us, are trying to balance working, childcare, and their own concerns and anxieties.

Depending upon your politics, you can either see this as the inevitable result of relentless budget cuts meeting unforeseen circumstances, proof of government incompetence, or both. 

My suggestion would be to continue trying to apply.  At the same time, check out your local news and local government websites to see if alternatives are available.  I know some jurisdictions are gathering information on paper forms as an emergency backup.

Journal questions:

What would you do if you were laid off?  How can you best prepare in case you are impacted in the future?