On Friday afternoon, the U.S. House of Representatives passed and the President signed the CARES Act, the largest economic stimulus package in history, in response to the novel coronavirus COVID-19 outbreak.
This blog is designed to be an overview of what the stimulus package provides for Loudoun business owners, workers and residents.
The Act provides assistance of both emergency relief for small businesses and working families, and ensures that state and local governments and companies have the funds needed to cover gaps in which normal revenues are not collected due to the COVID-19 response. The CARES Act includes:
- $500 billion in loans for distressed companies.
- $377 billion for small businesses:
- $350 billion for SBA loans;
- $17 billion for six months payments for business currently utilizing SBA loans;
- $10 billion for grants of up to $10,000 for emergency funds.
- $260 billion in unemployment insurance benefits;
- $250 billion set aside for direct payments to individuals and families (with American adults earning $75,000 or less receiving $1,200 for individuals, $2,400 for married couples, and $500 additional per child; and adults earning more than $75,000 receiving a lesser amount);
- $150 billion for hospitals to invest in equipment and infrastructure;
- $150 billion to assist states and localities.
Small businesses, independent contractors, and self-employed workers will have access to assistance including $350 billion in loan forgiveness grants.
“The bill is very generous towards businesses under 500 [employees],” Virginia Sen. Mark Warner told the #LoudounPossible Pod on Friday. “It will allow a loan of up to $10 million that will cover, basically on a prorated basis, about a quarter’s worth of payroll and some level of overhead. That loan will be forgivable if you’re able, at the end of the crisis, to bring back all of your employees.”
The CARES Act will also impact Loudoun’s aviation and logistics companies, offering grants of $25 billion for the passenger air carriers, $4 billion for the cargo aviation industry, and $3 billion for aviation industry contractors.
Get more details on the stimulus package below:How CARES Act Helps Business and Workers Read the CARES Act in its entirety