The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020. The law is an attempt to address issues at the federal level through economic support to the business sector, employees, individuals and families, and specific industries that have been impacted by the global pandemic, including air transportation, health care, and education.
Highlights of the act include immediate tax rebates of up to $1,200 per taxpayer; forgivable, subsidized loansto small businesses; direct loans to the hardest hit industries; the relaxation of income tax rules and deadlines; ongoing financial aid to students, schools, and colleges; and direct stabilization of money market mutual funds.
In order to assist small businesses that have seen their operations halted or cut back by the disease itself, public health measures, or loss of business due to the reaction to COVID-19, the CARES Act extends the qualifications for borrowers and the size of loans that are available through the U.S. Small Business Administration. These loans will also help businesses pay for the increased medical, family, and sick leave they will be required to offer employees under the recently enacted Emergency Family and Medical Leave Expansion Act and Emergency Paid Sick Leave Act.
Visit www.sbc.senate.gov for more information.