US Chamber Business Reaction to CARES Act

Business Impact of the CARES Act (Federal Stimulus Bill)

Small Business “Paycheck Protection Program”

$349 billion with eligibility to:
- small businesses <500 employees, up to 1500 based on industry & revenue
- Accommodation & Food Services
- 501 (c) 3 charitable organizations with <500 employees
- Sole proprietors, self-employed, and independent contractors
Regulatory Streamlining
- flexibility in lending, requirements
Loan forgiveness in proportion maintaining payroll

Changes to SBA’s Economic Injury Disaster Loans (EIDLs)

Loans available to nonprofits including 501 (c) 6s
Loans based on credit scores
Allows for cash advances for payroll support, supply chain disruption, mortgage or lease payments, or repaying obligations

Loan Programs and Credit Facilities

$500 billion in loans and loan subsidies for air carriers, national security companies, lending institutions

Business Tax Provisions

Employee Retention Tax Credits
Delay Payroll Taxes
- defer payment of the employer share of the Social Security tax due between now and January 1, 2021 to December 31, 2021
  (50% due) and December 31, 2020 (remaining due)
Modifications for net operating costs
Accelerated AMT credits
Modification of limitation on business interest
Amendment to qualified improvement property
Temporary exception from excise tax for alcohol used ot produce hand sanitizer

Pension and Employee Benefit Requirements

Changes to deadlines, required minimum pension contributions, and benefit restrictions

Banking Relief, Mortgage, Forbearance, and Credit Reporting

Relief from:
- accounting standards
- CECL standards
- forebearance requests from borrowers

Payments & Relief for Individuals

Direct payments to taxpayers earning less than $75k, $150k filing jointly

Unemployment Programs

Extend unemployment insurance by 13 weeks and include a four-month enhancement of benefits
Those normally not eligible – ex. may have exhausted benefits
Sets criteria for demonstrating unemployment due to the virus
No one week waiting period for unemployment

Work Sharing Programs

States enacting or with short-term compensation programs can get 100% federal reimbursement
Sets other criteria

Paid Leave Changes

Changes Phase 2 Bill that was just enacted to FMLA coverages (see page 7 of US Chamber’s document)

Health Care Provisions

Many components for health care providers and insurance

Student Loans

Defers payments, principals and interest until September 30
Suspends defaults, garnishments and reporting to credit agencies

State and Local Aid

Provides $150 billion to states and local government based on each state’s population for the purpose of funding unforeseen expenses related to COVID-19.

Appropriations

$340 billion in new federal spending, 80% of which goes to state and local governments through:

$20.5 mil for USDA Rural Business Cooperative Service
$80 mil to the Food & Drug Admin
$1.5 bil to the Economic Development Admin
$50 mil to Manufacturing Extension Partnership (MEP)
$6 mil to the National Institute for Innovation and Manufacturing
$10 mil to the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIMBL)
$60 mil to the National Aeronautical and Space Agency (NASA)
$2.45 bil for Defense Industrial Base
$70 mil to the U.S. Army Corp of Engineers
$562 mil to the Small Business Administration (SBA)
$9.1 mil to Cybersecurity and Infrastructure
$45 bil to the Federal Emergency Management Administration (FEMA)
$453 million for the Bureau of Indian Affairs
$7.2 mil for the Environmental Protection Agency (EPA)
$1 bil for Indian Health Service
$127 bil for the Public Health and Social Services Emergency Fund
$4.3 bil to the Centers fo Disease Control
$945.5 mil for the National Institute of Health (NIH)
$30.9 bil for the Department of Education
$19.6 bil for the Dept. of Veterans Affairs
$353 mil for the U.S. Agency for International Development (USAID)
$31.1 bil for the Dept. of Transportation
$900 mil for Low Income Home Energy Assistance (LIHEAP)