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What is in the CARES Act

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What is in the CARES Act?

 

On March 27, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the third phase of legislation designed to lessen the economic impact of the COVID-19 pandemic.

The largest emergency response bill in history, the CARES Act allocates nearly $2 trillion in emergency funding to provide relief to households, small and large businesses, states and municipalities, and healthcare providers, among others. Many commentators have noted that the CARES Act is better characterized as a relief bill, which addresses the more immediate fallout, than a stimulus plan, which would restore regular economic activity and is expected to roll out in subsequent phases.

This infographic breaks down the CARES Act to explain some key funding items in the legislation.

 

Financial Assistance for Companies in Need

$500 Billion, mostly used to support loans to businesses, states, and municipalities through a new Federal Reserve lending facility.

 

Economic Support for Small Businesses

$380 Billion in Federal guaranteed loans available for qualifying small businesses through June 30th, 2020.  Portions of the loans spent on rent, utilities and payroll are eligible for forgiveness.

 

Various Tax Incentives

$300 Billion in tax benefits, such as deferred payroll taxes and the loosing of certain provisions of the Tax Cuts and Jobs Act.

 

Direct Payments to Taxpayers

$290 Billion in payments of $1,200 will be sent to taxpayers earning up to $75K, with an additional $500 per child, gradually phased out for incomes up to 99K.

 

Expansion of Unemployment Benefits

$270 Billion in extended jobless insurance by 13 weeks, increases in unemployment benefits by up to $600 per week for four months and expanded eligibility.

 

Federal Aid to Hospitals and Healthcare Providers

$150 Billion to help hospitals, community health center and other healthcare providers prepare for and respond to the pandemic.

 

Support to State, Local and Territorial Governments

$150 Billion to provide aid to governments to help them respond to the pandemic.

 

 

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