On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The CARES Act includes a range of extensive loan and grant programs that are vital to businesses across the country, including some US$500 billion in funding for the Department of Treasury that is expected to be leveraged by the Fed to produce more than US$4 trillion in lending to businesses, and possibly states.
Our Policy and Financial Services colleagues James J. Barresi, James C. Sivon, David Stewart, Edward J. Newberry, and Brandon C. Roman have produced an excellent summary of the extensive new Department of Treasury and Fed lending programs entitled “CARES Act Economic Assistance to Business Enterprises, States and Municipalities.” This report provides detailed information on multiple lending facilities established by the Fed to support business liquidity as well as Treasury Department direct lending to air carriers, cargo air carriers, and for businesses “critical to maintaining national security.” Read the full report below:
The CARES Act also provides more than US$360 billion in immediate loan assistance for small businesses, including (a) an expanded Economic Injury Disaster Loan (EIDL) program; and (b) the Paycheck Protection Program (PPP), administered under the Small Business Administration’s 7(a) program.
Our colleagues Pablo E. Carrillo, Kirk D. Beckhorn and Karen R. Harbaugh have produced a comprehensive report, entitled “Securing CARES Act Stimulus Assistance for Small Businesses,” providing guidance for small businesses seeking to secure stimulus funding to stay afloat during this unprecedented pandemic. The report answers important questions for small businesses which may need federal support including: what programs are created and funded by the Act, who is eligible for these programs and, based on information available so far, how the programs will work.
Read the full report below: