CARES Act
In response to the COVID-19 pandemic, President Trump on March 27, 2020 signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a stimulus bill intended to bolster the U.S. economy, among other things, and provide emergency assistance to qualifying businesses and individuals. The Act is aimed at reducing the economic impact of the coronavirus and authorizes $2.1 trillion in aid to various sectors of the economy. Specifically, the CARES Act provides the Treasury with $454 billion to make loans, loan guarantees and other investments in Federal Reserve programs and facilities that will give support to eligible businesses, States and municipalities.
Among its many provisions, the CARES Act establishes two loan programs intended to provide liquidity to businesses in the United States: (1) The Keeping American Workers Paid and Employed Act, which creates the Paycheck Protection Program (PPP), and (2) The Coronavirus Economic Stabilization Act (CESA), which creates loan programs to be directed by the United States Department of the Treasury.