Brief Overview of the CARES Act

Brief Overview of the CARES Act

03/27/2020 Tags: Announcements, In the News, COVID-19, CARES Act

Brief Overview of the CARES Act

The CARES Act — Coronavirus Aid, Relief and Economic Security — passed both houses of Congress, and President Donald Trump has signed the stimulus package into law.

The $2 trillion in COVID-19 relief is aimed at individuals, small businesses, larger businesses, state and local governments, healthcare facilities, education, among others.

Here are some of the highlights of the more-than-800-page bill:

  • Individuals: Those who earn less than $75,000 should receive a check for $1,200. Married couples who file jointly and make less than $150,000 total can expect $2,400. Families with children will get $500 per child. The act also contains provisions making it easier for people to access their retirement savings. Retirees also have the option to defer required minimum distributions.
  • The Unemployed:Those without jobs will get an additional $600 a week on top of whatever unemployment amount they receive from their state. The extra money lasts four months, and there’s also 13 weeks of additional unemployment insurance. Gig workers and the self-employed can also receive benefits through the end of the year.
  • Small Businesses: Companies with fewer than 500 employees will have access to emergency grants and loans. The act provides $10 billion for grants of as much as $10,000for immediate operating costs. The Small Business Administration will also be able to allocate $350 billion in loans, up to $10 million per business.The government might forgive portions of the loan used for payroll expenses, utilities, rent, or mortgage insurance. Small businesses with existing SBA loans have access to $17 billion to cover six months of payments automatically.
  • Healthcare Facilities:Hospitals battling the coronavirus are slated to receive $100 billion, while community health centers are to receive $1.32 billion in additional funding. The stimulus package also reauthorizes a telehealth program so doctors can continue virtual appointments. $20 billion in funding has been earmarked for veterans, and Indian Health Services is set to receive $1 billion.
  • Agriculture: The act includes $9.5 billion in emergency aid for farmers and ranchers and replenishes the Commodity Credit Corporation with $14 billion.
  • Education and the Arts:The $43.7 billion for education mostly impacts higher ed, with much of it focused toward student loan relief and students forced to drop out because of the coronavirus. There is also funding earmarked for the arts.
  • State and Local Governments:The $339.8 billion for state and local is divided up between COVID-19 response efforts as well as grants, schools and higher ed, and children and families.
  • Larger Businesses:The second-largest chunk of the act — about $500 billion — will come in the form of loans that big corps will have to pay back to the government. There will be a special inspector general and committee who will oversee the loans. There is also a tax credit for businesses of all sizes to help them keep their employees.

The CARES Act has plenty of nuances and details.Our team of experts is working to research the new law. We’ll provide more information on those as they come to light.

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

Other Useful News



At Casey Peterson, LTD, we understand not everyone loves the complexities of accounting like we do. That's what sets us apart from the rest. Our CPAs, accountants, and financial advisors truly love numbers, solving problems, and creating business and financial strategies for our clients.

We’re looking for clients who believe in good customer service — clients who want CPAs, accountants, and financial advisors who are big-picture thinkers and ethical problem solvers. We’re looking for relationships, not transactions.

If you want the same, we should talk.

Contact Us