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What is the CARES Act?

By now, almost everyone in the United States (and the rest of the world) is familiar with the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CARES Act was passed by Congress, with bipartisan support, and then signed into law by President Donald Trump on March 27th, 2020.

As a more than $2 trillion economic relief package, it was designed to help businesses and individuals across the country affected by the economic and public health impact of COVID-19.

Generally speaking, the CARES Act focuses on four key areas:

1. Assistance for the American People

For example, through Economic Impact Payments, the government was able to quickly get money into the hands of the American people. This allows them to better deal with the financial impact of the pandemic.

2. Assistance for Small Businesses

This has come in many forms, including the Paycheck Protection Program.

With this, the U.S. Small Business Administration (SBA) was able to provide struggling businesses with forgivable loans. This helped with everything from covering overhead to maintaining payroll to rehiring employees.

3. Preserving Jobs

Since the early months of the pandemic, it’s affected the job market throughout the country. As a result, millions of people found themselves out of work.

Thanks to the CARES Act, the Treasury Department played a huge role in preserving jobs in a variety of industries.

Furthermore, unemployment benefits were expanded, thus giving out of work Americans more financial stability.

4. Assistance for Local, State, and Tribal Government

It goes without saying that the federal government wasn’t the only one affected by the pandemic.

Through the CARES Act, direct payments were issued to local, state, and tribal governments.

Final Thoughts on the CARES Act

In simple terms, here’s how the government defines the CARES Act on its website:

The CARES Act provides fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for our American industries.

These are the basic details of the CARES Act, but you can learn more about it by visiting this page of the U.S. Department of the Treasury website.

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