CARES Act Overview | Lead Bank Community Bank




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.




Paycheck Protection Program Round 2.0

$284 billion dollars of the relief package was allocated to fund PPP Round 2.0 loans. This legislation provides funding for new loans to small businesses and it also benefits businesses that had already received a PPP loan in 2020.

Loan Forgiveness

The Paycheck Protection Program Flexibility Act eases restrictions on small businesses as they seek loan forgiveness under the Paycheck Protection Program authorized by the CARES Act. 

Student Loans

The CARES Act, which is the new multi-trillion dollar stimulus bill designed to help those impacted by the COVID-19, directly helps borrowers with student loans and provide financial relief from March 13, 2020 through September 30, 2021.

Paycheck Protection Program Round 1.0

The Paycheck Protection Program, PPP, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act intended to provide small businesses with cash-flow assistance.