On March 27, 2020, the largest economic bill in US history was signed into law – the Coronavirus Aid, Relief, and Economic Securities Act (the “CARES Act”). The CARES Act provides $500 billion in corporate aid, $100 billion to health-care providers, $150 billion to state and local governments, and $349 billion in small business loans. The legislation further provides billions of dollars in debt relief on existing loans.
The CARES Act also includes a “Paycheck Protection Program”, whereby small businesses can receive loans to cover payroll expenses, group health care benefits, employee salaries, interest on mortgage obligations, rent, and utilities. To qualify for these small business loans, businesses must employ 500 employees or less.