Top takeaways from the CARES Act

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020. The CARES Act marks the largest economic relief package in our nation’s history. The following are the major takeaways from the Act that you need to know along with links to valuable resources that will help you take full advantage of its benefits.

Takeaway No. 1: Individuals

The Act provides economic support to individuals in response to the economic distress caused by the coronavirus (COVID-19) pandemic. It includes one-time payments for individuals and couples ($1,200 and $2,400, respectively) as well as $500 per child. The Act also creates a temporary Pandemic Unemployment Assistance program to provide payments to those not traditionally eligible for unemployment benefits. Additionally, the Act waives the 10% penalty on early withdrawals from retirement plans, and it provides relief from student loan debt.

Related Insights

• Federal tax coronavirus resources
• State and local tax coronavirus resources
• Congress enacts CARES Act providing COVID-19 relief (March 28, 2020)

Takeaway No. 2: Small businesses

The Act establishes a program where eligible small businesses and not-for-profit organizations can apply for business interruption loans for expenses covering the period beginning Feb. 15, 2020, through June 30, 2020. In addition, the SBA’s Economic Injury Disaster Loan program is revised to include to sole proprietors, cooperatives and employee stock ownership plans (ESOPs).

Related Insights

• Video: Accessing SBA loans through the CARES Act (March 30, 2020)
• The small business owner’s guide to the CARES Act