Laid Off Due to the Coronavirus Pandemic?

Many businesses have laid off their workforce in massive numbers or closed down completely due to the worldwide coronavirus pandemic, leaving millions of Americans suddenly jobless. Losing your job is stressful under normal circumstances, but alongside a global pandemic and predicted recession, things can seem especially bleak. Meanwhile, you still need to put food on the table, a roof over your head and manage other financial obligations.

While it may feel like everything is out of your control, there are steps you can take to manage your finances and programs in place to help you keep your head above water.

Step 1: Apply for unemployment benefits

In most cases, you can file online, but you should contact your state's unemployement office if you need help applying for benefits. Many workers who don’t qualify for unemployment under normal circumstances now qualify thanks to the CARES Act.

Many state unemployment agencies are still awaiting guidance from the Department of Labor on how to implement the CARES Act, so they may not be equipped to process new types of claims right away. Continue to check your state’s website, Facebook and Twitter accounts for updates and guidance as it is available.

The CARES Act also increases weekly unemployment benefits by an additional $600 per week. You can receive this amount even if you’ve exhausted your state benefits. If you’ve already filed a claim and were approved, you don’t need to do anything to receive the additional benefits.

Be warned: State unemployment offices are overwhelmed by the dramatic rise in claims. It may take several attempts to file your claim via phone or online, and benefits could be delayed as state agencies try to keep up with demand and adjust to new federal guidance from the CARES Act.

How do COVID-19 unemployment benefits work?

Step 2: Contact your banks and lenders

Be proactive, contact your lenders, and ask for the help. Many financial institutions are offering relief for those who were laid off or can’t work due to the coronavirus pandemic.

Texans Credit Union is offering a range of options to help our members who have been impacted by COVID-19. Reach out to our Member Connect Representatives at 972.348.2000 if you need help.

The CARES Act also suspends payments on most federal student loans until Sept. 30. Borrowers will not be charged interest during this time and do not need to do anything to suspend or restart their payments. If you have a private student loan, contact your lender to ask about emergency relief.

Suspending payments can help free up cash for the things you can’t delay, like food and possibly rent.

Step 3: Triage your finances

Cut out any nonessential spending for the time being. That may mean canceling or suspending gym memberships and subscription services. Remember that these cuts are temporary. The goal here is to free up as much room in your budget as possible for the things that can’t be paused.

Step 4: Tap into community resources

Communities are coming together to help those hardest hit by the pandemic. Schools may be closed, but some districts are providing free breakfast and lunches for students. Check your local district to see if there is a meal-pickup program. Other community groups and industry associations are helping those in the service, entertainment and hospitality sectors, which have been hit particularly hard by mandatory closures. Community kitchens and food pantries in most areas are also stocked and ready to help. Reach out to your local organizations to see what assistance is available to you.

Step 6: Make a plan for stimulus funds

The CARES Act stimulus package includes a one-time payment of $1,200 to many Americans, though the exact amount a person receives will be based on income. Those payments will likely take a few weeks to arrive. The stimulus package also includes relief for small businesses forced to shutter due to the coronavirus.

How much can I expect from my stimulus check?