The recently passed Coronavirus Aid, Relief and Economic Security (CARES) Act provides $2 trillion in emergency aid to businesses and individuals impacted by the COVID-19 crisis. The 880-page legislation is very complex. The content below is our best explanation and has been divided into the basic parts of the Act:
- Small Business Loan Program Expansion 7(A)
- Employee Issues and Business Assistance
- Changes in Health Care Delivery
- Student Loan Relief
- Individual Assistance Programs
Each business owner should consider consultation with legal, human resource and accounting professionals before taking significant actions.
Everyone should keep in mind that these laws were passed very quickly and are being interpreted and policies written by the Treasury Department and Department of Labor on an ongoing basis. Changes in the regulations will be frequent and PCS will attempt to keep the information updated as soon as it happens.
This expansive piece of legislation contains other provisions not related to the coronavirus crisis. Examples include:
- 95 pages of regulations allowing significant increased authority of HHS and FDA over OTC drugs with ability to impose significant taxation on facilities manufacturing certain OTC drugs
- Hundreds of billions designated to increase funding to Federal and State agencies related to increased costs with dealing with corona virus crisis…example… Provides an additional amount for ‘‘National Network for Grants to the National Railroad Passenger Corporation’’, $526,000,000, to remain available until expended, to prevent, prepare for, and respond to coronavirus.
The final bill can be found here: https://www.congress.gov/bill/116th-congress/house-bill/748/text#toc-HCCF2DA7CBD6341059EAB97C24489743B