The House of Representatives is set to take up tomorrow the nearly $2T emergency relief package approved unanimously by the Senate late last night. The Coronavirus Aid, Relief and Economic Security (CARES) Act includes:
- Payroll Protection Program – (see below)
- Individual Aid – $1,200 financial assistance for most individuals, plus $500 for children (reduced to about $75K/$150K individuals/couples)
- State Stabilization Fund – $150B to state and local governments, allocated by population
- Payroll Tax Credit Refunds – Advance refunds of payroll tax credits enacted in the Families First Coronavirus Response Act, giving employers financial assistance to pay for mandated sick and family leave
- Enhanced Unemployment Insurance – Extension of unemployment to nontraditional employees, and increased overall unemployment assistance for four months
You can read more about the CARES Act here.
Paycheck Protection Program (forgivable loans) – The program has been described as a “crucial lifeline” for business and contains two important features:
- The loans are made directly by private, local banks and CDFIs, which will enhance speed
- The loans, if used on payroll and other operating expenses, are forgivable
You can see a draft summary of the Payroll Protection Program here.