On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is primed to inject $2 trillion into the economy in response to the COVID-19 national emergency, became law. Key takeaways from the CARES Act include:
- The bi-partisan Coronavirus Aid, Relief, and Economic Security Act (the, “CARES Act”) is “Phase III” of the Federal government’s response to the COVID-19 outbreak.
- $349 billion dedicated to prevent layoffs and business closures while workers have to stay home during the outbreak.
- Companies (including nonprofits and other unincorporated businesses) with 500 employees or fewer that maintain their payroll during coronavirus can receive cash-flow assistance.
- If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
Fraser Stryker has provided two informational client updates on the CARES Act:
- Coronavirus Aid, Relief, and Economic Security Act Executive Summary
- Small Business Interruption Loan Program under the “Coronavirus Aid, Relief, and Economic Security Act”.
Mark L. Brasee
Paul J. Halbur
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.