The CARES Act: Providing Fast and Direct Relief for Employers
Last updated June 10, 2020
President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act on March 27, 2020. Also called, the coronavirus stimulus bill, the CARES Act provides fast and direct economic relief for businesses and individuals that have been negatively impacted by COVID-19.
The price tag for the entire relief package contained in the Act is in excess of $2 trillion. It is the largest economic rescue plan in the history of the United States. The small business recovery section alone allocates twice as much money as Congress spent to rebuild the entire continent of Europe through the Marshall Plan after World War II.
News coverage of the CARES Act has focused on two aspects in particular: the one-time payments to individuals, and the Paycheck Protection Program. The Act, however, is 880 pages long and contains many other provisions impacting businesses, employment, and individual incomes. Below we have provided you with the highlights from the Act.
Alternative Provisions to Closure and Layoffs
The Small Business Administration is offering two kinds of loans to help employers with the impacts of the coronavirus.
Small businesses may be eligible for an Economic Injury Disaster Loan of up to $10,000 to cover immediate operating costs. The advance funds will be made available within days of an accepted application, and will not have to be paid back.
The Paycheck Protection Program (PPP) provides loans of up to $10 million per business (those with fewer than 500 employees). This would cover expenses till the end of