Passage of CARES Act Means Relief for Businesses on Its Way From Washington

On Friday, Congress passed, and Pres. Donald Trump signed, the $2.1 trillion Coronavirus Aid, Relief, and Economic Security Act ( “CARES” Act). The CARES Act was crafted to help preserve jobs and provide hard-hit employers with the financial assistance they need to survive the fallout from the economic effects of the coronavirus pandemic.

Of note for Ohio Chamber members and other businesses, the bill:

  • Establishes the Paycheck Protection Program, which provides $350 billion in loans for companies with under 500 employees that effectively become grants if those loans are used to keep workers on payroll, make rent and mortgage payments, or pay utilities; and
  • Includes $500 billion in immediate tax relief for businesses of all sizes, including provisions such as payroll tax deferral and the ability to immediately monetize tax losses.

The bill also provides direct financial assistance to families and a large temporary expansion in unemployment insurance benefits, and includes $150 billion for hospitals and health care providers. It also provides $150 billion to support states and local governments so they can continue to provide basic services.

Click here for a comprehensive summary of the “CARES” Act prepared by the U.S. Chamber of Commerce. In addition, the Ohio Chamber anticipates offering more information about the CARES Act, specifically the Paycheck Protection Program, via an upcoming webinar or conference call. Details will be forthcoming.