Coronavirus Aid, Relief and Economic Security (CARES) Act

$2 Trillion in total stimulus spending

• $350 billion small business (fewer than 500 employees) loan fund
  • Up to $10 million in loans per business that is meeting payroll for the next eight weeks
  • Expenses for payroll, mortgage interest/rent, and utilities are forgivable
  • Can defer 2020 payroll taxes to Dec. 31, 2021 (50%) and Dec. 31, 2022 (50%)
  • Changes to SBA’s Economic Injury Disaster Loans for payroll, supply chain disruption, mortgage/lease, etc. (available to non-profits)
• $500 billion business loan fund for larger corporations (more than 500 employees)
  
  • Loans and loan guarantees
  • Oversight will be provided by a Treasury inspector general
  • Loans will not last more than five years and are not forgivable
  • $50 billion for passenger airlines and $8 billion for cargo air carriers
  • Businesses receiving loans must maintain existing employment level as of March 24
• $300 billion in cash payments to Americans
  
  • $1,200 cash payments per person earning less than $75,000, phased out through $100,000 of income
  • $2,400 cash payment for couples filing jointly earning less than $150,000, phased out through $200,000 of income
  • Additional $500 per child
• $250 billion for unemployment insurance
  
  • Increases the maximum unemployment insurance payment by $600 per week for four months
  • Extends the duration of unemployment insurance from 26 weeks to 39 weeks to coincide with the end of 2020
  • New guidelines would retroactively be applied to January 27
  • Extends to private contractors and gig economy workers
  • No one-week waiting period (federal government covers cost for states that waive the one-week waiting period)
• $150 billion for state, local, and tribal governments to aid their respective responses to COVID-19
• $140 billion for hospitals and medical infrastructure necessary to combat the virus (masks, ventilators, accelerated workforce training for medical professionals, COVID-19 testing, CDC funding, etc.)
• Increases from $30 billion to $50 billion the amount the Agriculture Department can spend on its bailout program
• Changes to sick leave
  
  • Paid FMLA leave capped at $200/day and $10,000 in aggregate
  • Paid sick leave is capped at $511/day and $5,110 in aggregate (drops to $200/day and $2,000 in aggregate for sick leave taken to care for a family member or due to school closure)
• Other assistance for individuals
  
  • Waives the 10% early withdrawal penalty from retirement accounts for COVID-19 related distributions up to $100,000, retroactive to January 1
  • Guarantees COVID-19 testing will be free of charge to patients
  • Student loan payments, principal, and interest can be deferred through September 30, 2020, without borrower penalty