NATIONWIDE MARKETING GROUP
Exactly 10 days after signing into law “Phase 2” of the Coronavirus relief efforts, President Donald Trump put ink to paper, making official the largest single economic stimulus package in U.S. history. “Phase 3,” the CARES Act, is a $2 trillion relief bill that will touch nearly every part of the U.S. economy.
Where H.R.6201 (a.k.a. Phase 2, a.k.a. the Families First Coronavirus Response Act) focused on employees’ rights and providing paid sick leave and expanded FMLA rights for workers impacted by the virus, S.3548 (a.k.a. Phase 3, a.k.a. the CARES Act) is geared towards putting dollars in the pockets of individuals and businesses in order to prop up a very shaky and fragile economy. The bill is projected to provide nearly three-times as much financial assistance and relief as the American Recovery and Reinvestment Act of 2009.
But how does the $2 trillion shake out, and what benefits and impacts will the CARES Act have for small businesses? This simple graph, created by NPR, paints a great picture of just that (see graph above).
First and foremost, the bill sets aside an estimated $560 billion for individuals. That includes the cash payments that will be distributed to most working Americans. According to the text of the bill, most individuals making $75,000 or less can expect a one-time payment of $1,200. Married couples would each receive a check, as well as a $500 credit per child. Checks would start to reduce in value and eventually phase out for people making more than $99,000 (couples making more than $198,000).
FOR SMALL BUSINESSES
The CARES Act reserves some $377 billion for small business relief, including emergency grants and forgivable loan programs for companies with fewer than 500 employees. Additionally, the bill includes changes to rules for expenses and deductions that are intended to make it easier for companies to keep employees on their payroll and stay open in the near-term.
That $377 billion is broken down like this, per the NPR report: