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.


$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)