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.

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