Funding for Government Operations
$340 billion across Federal agencies and state and local communities. More than 80% ($275 billion) would go to state and local governments and communities.
• $117 B for hospitals
• $45 B for FEMA
• $16 B for Strategic National Stockpile
• $4.3 B for Centers for Disease Control
• $11 B for Vaccines, Therapeutics, Diagnostics, and Medical Needs
USDA Funding – $49 billion total
• Of this amount, $9.5 B to support agricultural producers, including livestock and specialty crop producers to respond to the COVID-19 losses.
• The Commodity Credit Corporation (CCC) is provided restored funding/borrowing authority of $14 B.
• The Secretary of Agriculture is given the authority to extend the term of marketing assistance loans to 12 months from the current 9 months. This authority expires end of September 2020.
Department of Commerce Funding
• Manufacturing Extension Partnership (MEP) – $50 million to be distributed among the 51 MEP centers to help small- and medium-sized manufacturers recover from the economic impacts of coronavirus. The bill also waives the statutory cost-match requirements for all FY 2020 funding.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
Paycheck Protection Act (Small Business Loan Program) – $350 billion
• Eligible to businesses with up to 500 employees – loan period of Feb. 15, 2020 to June 30, 2020
• Loan provided through banks, credit unions and other traditional lenders
• Gives Treasury the authority to set criteria that would allow farm credit institutions to be eligible lenders under the paycheck protection program until the national emergency for COVID-19 expires
• Also allows not for profit entities, sole proprietors, and self-employed individuals to qualify
• Maximum loan amount of $10 M through end of 2020
• Expands use of loan funds to include payroll, paid sick or medical leave, insurance premiums, salaries, mortgage and lease/rent payments, utility, and other debt obligations
• Government guarantees the loans at 100% through end of 2020; 75% to 85% after 2020
• Waives borrower and lender fees and collateral and personal guarantee requirements
• Loan forgiveness – establishes process for borrowers to have loan forgiven in amount used for payroll, mortgage interest, rent, and utility for a period of 8 weeks after loan origination. Amount forgiven reduced proportionally to the number of employees laid off during the period relative to prior employment level. Eligible payroll costs do not include compensation above $100,000 in wages.
Unemployment Insurance Provisions
• Temporary unemployment assistance program through December 2020 for those not typically eligible – such as self-employed, independent contractors, and limited work history
• Provides payments to states to reimburse nonprofits and government agencies for half costs incurred through end of 2020 to pay unemployment benefits
• Additional $600 per week payment to each recipient of unemployment insurance for up to 4 months
• Pay costs of first week of unemployment benefits through 2020 for states that pay recipients as soon as become unemployed
• Provides additional 13 weeks of unemployment benefits through 2020
• Checks up to $1,200 per person/$2,400 per couple and increased by $500 per child. Phases down at adjusted gross income over $75,000 single/$150,000 married; completely phased out at $99,000 single/$146,500 head of household, one child/$198,000 joint filing with no child based on 2019 if filed (or 2018) tax return.
• Extends tax filing date to July 15; tax payment deadline already extended by IRS to July 15
• Waives 10% penalty for early withdrawal for distributions from retirement accounts
• Waives required minimum distribution rules for defined contribution plans and IRAs for 2020
• Refundable tax credit for 50% of wages paid during COVID-19 crisis. Available if operations were fully or partially suspended due to COVID-19 shut down; or gross receipts declined by more than 50% compared to same quarter in prior year. For eligible employers with 100 or less full time employees, all wages qualify for the credit regardless of business status. Credit is provided for first $10,000 of compensation including health benefits.
• Employers and self-employed individuals can defer payment of employer share of Social Security (payroll) tax. Deferred tax must be paid back over the next 2 years with half paid by end of 2021 and half by end of 2022.
• Allows net operating losses (NOLs) from 2018, 2019, or 2020 to be carried back 5 years. Temporarily removes the taxable income limitation to allow a NOL to fully offset income.
• Allows pass-through businesses and sole proprietors to benefit from NOL carryback provision
• Temporarily increases from 30% to 50% of taxable income for 2019 and 2020 the amount of interest expense that businesses are allowed to deduct
Medical, Healthcare, Education, and Drug Provisions
• Hospitals and health care workers: $100 billion into hospitals and the nation’s health system.
• Schools: $30 billion in emergency education funding.
Economic Stabilization and Assistance To Severely Distressed Sectors – $500 billion
• Large corporations: $500 billion in loans, loan guarantees and other investments, overseen by a Treasury Department inspector general. These loans will not exceed five years and cannot be forgiven.
• Airlines will receive $25 billion (of the $500 billion) for passenger air carriers and $4 billion for cargo air carriers.
• Transportation: $25 billion is dedicated to emergency transit funding.