The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed on March 27, 2020. The $2.2 trillion stimulus bill was created in response to the economic uncertainty caused by the Covid-19 pandemic.
In short, the CARES Act was intended to assist American workers and businesses with financial assistance to get through the restrictions of the pandemic. In this post, you’ll learn what it consists of, what the different benefits are, and how they have been implemented.
What Does the CARES Act Cover?
Assistance to Workers
Through the CARES Act, adults making less than $99,000 per year were issued a one-time payment of up to $1,200, plus an additional $500 per child in the home under 17 years old.
An additional payment is on the way, though it still remains unclear when the funds will be available, and how much each payment will be for.
Assistance to Small Businesses
The Paycheck Protection Program (PPP) is a piece of the CARES Act that provides small businesses with the necessary funds to cover up to eight weeks of payroll costs, including benefits. The funds can also be used for necessary expenses, such as rent and utilities.
Preserving Jobs
For businesses directly affected by government or economic restrictions caused by the pandemic, the CARES Act offers a payroll credit to incentivize businesses to keep their workers employed. Qualifying Businesses can get up to 50% of payroll expenses covered, at a maximum of $10,000.
Assistance to State, Local, and Tribal Governments
$150 billion of the funds in the CARES Act were allocated to the Coronavirus Relief Fund, which assists state, local, and tribal governments in their operations during the pandemic.
The payments from the fund are required to be used in direct efforts to correct economic uncertainty caused by the pandemic, and may not be used for any efforts that were included in the budget prior to March of 2020.
The CARES Act, Summed Up
The CARES Act is an ongoing effort to keep the American economy on the right track as we all navigate the current state of the pandemic.
Be sure to keep an eye out for continued measures that are taken through the bill, which will be adjusted and implemented as the nature of the situation evolves.
For the most up to date information on the CARES Act, check out the Department of the Treasury website.
