Coronavirus Aid, Relief, and Economic Security Act or the CARES Act
This bill responds to the COVID-19 (i.e., coronavirus disease 2019) outbreak and its impact on the economy, public health, state and local governments, individuals, and businesses.
DIVISION A--KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM ENHANCEMENTS, AND ECONOMIC STABILIZATION
This division establishes the Paycheck Protection Program to provide eight weeks of cash flow assistance to small businesses through federally guaranteed loans to employers who maintain their payroll. Such assistance shall be to cover costs such as payroll, paid sick leave, supply chain disruptions, and employee salaries. The division further provides that certain amounts owed on such loans are eligible to be forgiven.
The division also authorizes the Small Business Administration (SBA) to provide advances on SBA emergency disaster loans for small businesses that have applied for such loans due to the COVID-19 pandemic.
Additionally, the division requires the SBA to pay all principal, interest, and fees on certain new and existing SBA loans for a period of six months.
TITLE I--KEEPING AMERICAN WORKERS PAID AND EMPLOYED ACT
This title provides emergency economic relief for small businesses to meet their payroll and expenses and to receive education and assistance throughout the COVID-19 pandemic.
(Sec. 1102) This section authorizes the Small Business Administration (SBA) to guarantee paycheck protection loans during the period beginning on February 15, 2020, and ending on June 30, 2020.
During this period, in addition to a small business, any business, nonprofit organization, veterans organization, or tribal business is eligible to receive a paycheck protection loan if it employs fewer than 500 employees or the applicable SBA size standard for the relevant industry. In addition, individuals who operate as sole proprietors or as independent contractors, as well as certain self-employed individuals, are eligible to receive a paycheck protection loan.
Allowable uses for such loans include (1) payroll costs, (2) continuation of group health care benefits, (3) employee salaries, and (4) rent payments.
(Sec. 1103) This section authorizes the SBA to award grants to resource partners to provide specified education, training, and advising to small business concerns that are negatively impacted as a result of COVID-19.
(Sec. 1104) This section requires the SBA to reimburse any recipient of a grant under the State Trade Expansion Program for financial losses relating to a foreign trade mission or a trade show exhibition that was cancelled solely due to a public health emergency related to COVID-19. Such reimbursement may not exceed the recipient's grant funding.
(Sec. 1105) This section temporarily waives the requirement that participants in the Women's Business Center Program of the SBA obtain matching cash contributions from non-federal sources as a requirement for participation in the program.
(Sec. 1106) This section makes recipients of paycheck protection loans eligible for forgiveness of amounts expended for payroll costs and payments of interest on mortgage obligations, rent, or utilities during the eight-week period such loans are provided.
(Sec. 1107) This section provides specified appropriations for
(Sec. 1108) This section authorizes the Minority Business Development Agency of the Department of Commerce to provide grants to minority business centers and minority chambers of commerce for educating, training, and advising minority business enterprises on such topics as (1) hazards and prevention of transmission and communication of COVID-19 and other communicable diseases; (2) potential effects of COVID-19 on their supply chains, distribution, and sale of products and mitigation of those effects; and (3) management and practice of telework to reduce possible transmission of COVID-19.
(Sec. 1109) This section requires Treasury to establish criteria to enable insured financial institutions that do not participate in SBA lending programs to participate in the paycheck protection program.
(Sec. 1110) This section makes small businesses and certain other entities eligible for an advance of up $10,000 on an SBA disaster loan for which they have applied in response to the COVID-19 pandemic. The SBA shall waive (1) any rules related to the personal guarantee on advances and loans under a certain amount, (2) the requirement that an applicant must be in business for the one-year period prior to the disaster (except that no waiver may be made for a business not in operation on January 31, 2020), and (3) the requirement that an applicant be unable to obtain credit elsewhere.
(Sec. 1111) This section requires the SBA to provide its resources and services in the 10 most commonly spoken languages, other than English, in the United States.
(Sec. 1112) This section requires the SBA to pay the principal, interest, and any associated fees that are owed on certain SBA loans for a six-month period. Such loans must be in a regular servicing status.
(Sec. 1113) This section expands bankruptcy relief by (1) excluding from current monthly income any payments made under federal law relating to the national emergency declared by the President with respect to COVID-19, and (2) allowing the modification of a reorganization plan under Chapter 11 if the debtor is experiencing material financial hardship due to COVID-19.
TITLE II--ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND BUSINESSES