General Counsel Corner – COVID-19 Stimulus Round 3 (CARES Act)….almost there
Importantly, I am glad to see that we are not the only people burning the midnight oil. In the middle of the night, the Senate agreed in principal to a $2 trillion stimulus package (Coronavirus Aid, Relief and Economic Security (CARES) Act). Details are still hard to locate, but at a high level, here are the provisions (I borrowed the points below from a financial advisor, Patrick Barry):
- Direct payments of $1,200 to most individuals making up to $75,000, or $2,400 for couples making up to $150,000. The amount decreases for individuals with incomes above $75,000, and payments cut off for those above $99,000. For those who filed married-joint, the amount decreases with incomes above $150,000 and payments cut off for those above $198,000. There is a reported benefit of $500 for each child.
- Expanded unemployment benefits that boost the maximum benefit by $600 per week and provides laid-off workers their full pay for four months. This benefit may provide additional resources for freelancers as well. I haven’t found more information as of yet on these details.
- $367 billion in loans for small businesses
- $150 billion for state and local governments
- $130 billion for hospitals
- $500 billion in loans for larger industries, including airlines and hospitality ($50 billion for airlines)
- Creation of an oversight board and inspector general to oversee loans to large companies
- Measure prohibiting companies owned by President Trump and his family from receiving federal relief
I also thought the note published by the Heritage Foundation provided more insight as to what is in the ACT: https://www.heritage.org/public-health/commentary/13-key-things-know-about-the-senates-giant-coronavirus-bill
Please note that the CARES bill is still subject to House approval and the President’s signature. Please click on the story on the following link for updates: https://apnews.com/edd230801c0e181169915e67b1fd64c6
We will update you with more information as it is released.
In other news, please see the bullet points below:
- PA Life Sustaining Business Updates: I sent out the updated list of Life Sustaining Business for PA along with a Q&A document. These documents are updated on a regular basis as new information is gathered. Please make sure you check on the following link for the latest information: https://www.pa.gov/guides/responding-to-covid-19/#ForBusinesses
- Waiver determinations in PA: In making decisions on whether to grant businesses waivers, the PA Dept. of Community and Economic Develop is following the US Dept. of Homeland Security’s Cybersecurity and Infrastructure Security Agency’s advice. The advisory link is https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19
- Small Business FAQ from NFIB: The following link provides some great topical FAQ’s for small businesses related to COVID-19. It is updated on a regular basis. Check it out: https://www.nfib.com/content/legal-compliance/healthcare/small-business-faqs-on-covid-19/
- Markets will recover and things will get back to normal: A friend and finance professional (Larry Moskowitz at Certified Financial Services) shared the linked chart with me yesterday. It lays out the S&P 500 with major health epidemics over the last 50 years. It is pretty interesting to see how the market moved.
Please see all of our updates at the following link: https://mpl-law.com/resource-center/
As always, please don’t hesitate to email myself or anyone in our office with any questions or comments. Also, please feel free to forward our updates to others.
Keep moving forward! We will get back to normal.