COVID19: Overview of the US Economic Rescue Package

The House of Representatives passed the Cares Act on Friday, sending it to President Donald Trump for his signature. We provide an overview.

COVID19: Overview of the US Economic Rescue Package

The House of Representatives passed the Cares Act on Friday, sending it to the POTUS for signature. Several outlets have created overviews of what is in the bill. Here are the key provisions included in the bill:

Direct payments to Americans

A one-time payment of $1,200 per taxpayer with salaries of up to $75,000, with a phaseout starting at that level and capping out at $99,000 in pay. Families will get an additional $500 per child. Installments will be distributed by the Treasury Department through direct deposit and checks. We discuss this program in more detail here.

Loans to small businesses 

Loans, totaling $367 billion+, made by banks and insured by the government, to small businesses (< 500 employees). The loans would have a nominal interest rate, and loan amounts used to pay payroll and rent would be forgiven. There are several options available to small businesses adversely impacted by COVID-19, including the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP),

$500 billion of corporate assistance 

$425 billion is appropriated for the Federal Reserve to use into loans to organizations that were adversely impacted, and $75 billion is accessible for explicitly hard-hit industries (e.g. travel). Democrats won oversight measures.

Help for organizations critical to national security

The package incorporates $17 billion for organizations that are viewed as vital to the U.S's. national security. While no organization is explicitly named, this could incorporate organizations like Boeing, whose stock has vaulted higher as the boost understanding has come together.

A significant expansion of joblessness benefits 

Jobless claims will be subject to more favorable timelines and will be higher for four months. Benefits will be accessible to furloughed laborers, consultants, and gig-economy workers

Aid to the medical system 

$100 billion was appropriated to support medical care providers in their battle against the coronavirus and nearly $20 billion is reserved for clinical equipment.

Funding for state and local governments 

$150 billion to support urban areas and states manage both the immediate expenses of battling the episode and the spending gaps made by lost monetary action prompting lower charge revenues.

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