The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) is now law after being passed in both the House and Senate and signed by President Trump on March 27, 2020.
There are 6 main groups that receive benefits under this legislation: individuals, small businesses, large businesses, hospitals and public health, federal safety nets, state and local governments and education.
INDIVIDUALS
Cash Payments (stimulus checks)
Additional Unemployment Payments
Self-Employed Unemployment Benefits (Pandemic Unemployment Assistance)
Extension of Tax Return Deadline to July 15, 2020
Employer Paid Tax Free Student Loan Repayments - up to $5,250
Insurance Coverage for COVID-19 Treatments, Vaccines and Tests
SMALL BUSINESSES
Emergency Grants - up to $10,000 for immediate operating costs
Forgivable Loans - up to $10 million per business
Existing Loan Payment Assistance - covers 6 months of payments for existing SBA loans
Refundable Tax Credit - 50% of payroll on the first $10,000 of compensation for each employee
LARGE BUSINESSES
These businesses will have to repay the government for any benefits received.
Loans and Other Assistance
Assistance to Help Airlines Stay Open
Restriction on Using Funds for Buyback of Stock
Public Disclosure Requirements
Oversight Committee
Members of Congress and Executive Branch Excluded from Receiving Benefits
Refundable Tax Credit - if business is closed or distressed
PUBLIC HEALTH
Hospitals & Community Health Centers - additional funding
Drug Access - expand research and prioritize and expedite approval of new drugs
CDC - additional funding
Veterans Healthcare - additional funding
Telehealth - additional funding
Medicine & Supplies - for Strategic National Stockpile and for hiring to speed development of vaccines
SAFETY NETS
Child Nutrition - meals for students via schools
Food Stamps - helps cover cost of new applications
Food Banks - additional funding
STATE AND LOCAL GOVERNMENTS
COVID-19 Response Efforts - additional funding
Schools and Child Care Centers - additional funding
EDUCATION
Student Loan Relief - loan and interest payments deferred through September 30 for federally owed loans
Relief for Students Forced to Drop Out - time away won’t be deducted from subsidized loan eligibility