Federal Spotlight: Senate Passes Historic Phase III Coronavirus Relief Package

March 26, 2020

Early Thursday morning, the U.S. Senate unanimously approved the largest emergency stimulus package in the history of the country as the U.S. economy grapples with the effects of the coronavirus. H.R. 748, known as the CARES (Coronavirus Aid, Relief and Economic Security) Act, provides roughly $2 trillion in aid to small businesses, larger industries, the healthcare sector and workers. The 880-page bill does a number of things including:

  • Gives the Treasury $500 billion to provide loans and loan guarantees to companies
  • Authorizes $350 billion for small business loans through the Small Business Administration. These loans can be forgiven under certain circumstances.
  • Direct payments of $1,200 to individuals and $2,400 to married couples whose income is $75,000 and $150,000. The payments phase out between $75,000-$99,000 for individuals and $150,000-$198,000 for joint filers.
  • Creates an employee retention tax credit¬†that provides a new, temporary refundable payroll tax credit for companies affected by the coronavirus
  • Increases unemployment benefits by $600 a week for four months. This is in addition to what individuals would receive from the state.

There are a number of other important provisions, which you can read about thanks to our partners at the National Association of Manufacturers and the U.S. Chamber of Commerce. The House is expected to take up the measure on Friday and pass it by voice vote. President Trump has said he will sign the legislation immediately.