CARES Act

Coronavirus Aid, Relief, and Economic Security Act or the CARES Act This bill responds to the COVID-19 (i.e., coronavirus disease 2019) outbreak and its impact on the economy, public health, state and local governments, individuals, and businesses. DIVISION A--KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM ENHANCEMENTS, AND ECONOMIC STABILIZATION This division establishes the Paycheck Protection Program to provide eight weeks of cash flow assistance to small businesses through federally guaranteed loans to employers who maintain their payroll. Such assistance shall be to cover costs such as payroll, paid sick leave, supply chain disruptions, and employee salaries. The division further provides that certain amounts owed on such loans are eligible to be forgiven. The division also authorizes the Small Business Administration (SBA) to provide advances on SBA emergency disaster loans for small businesses that have applied for such loans due to the COVID-19 pandemic. Additionally, the division requires the SBA to pay all principal, interest, and fees on certain new and existing SBA loans for a period of six months. TITLE I--KEEPING AMERICAN WORKERS PAID AND EMPLOYED ACT This title provides emergency economic relief for small businesses to meet their payroll and expenses and to receive education and assistance throughout the COVID-19 pandemic. (Sec. 1102) This section authorizes the Small Business Administration (SBA) to guarantee paycheck protection loans during the period beginning on February 15, 2020, and ending on June 30, 2020. During this period, in addition to a small business, any business, nonprofit organization, veterans organization, or tribal business is eligible to receive a paycheck protection loan if it employs fewer than 500 employees or the applicable SBA size standard for the relevant industry. In addition, individuals who operate as sole proprietors or as independent contractors, as well as certain self-employed individuals, are eligible to receive a paycheck protection loan. Allowable uses for such loans include (1) payroll costs, (2) continuation of group health care benefits, (3) employee salaries, and (4) rent payments. (Sec. 1103) This section authorizes the SBA to award grants to resource partners to provide specified education, training, and advising to small business concerns that are negatively impacted as a result of COVID-19. (Sec. 1104) This section requires the SBA to reimburse any recipient of a grant under the State Trade Expansion Program for financial losses relating to a foreign trade mission or a trade show exhibition that was cancelled solely due to a public health emergency related to COVID-19. Such reimbursement may not exceed the recipient's grant funding. (Sec. 1105) This section temporarily waives the requirement that participants in the Women's Business Center Program of the SBA obtain matching cash contributions from non-federal sources as a requirement for participation in the program. (Sec. 1106) This section makes recipients of paycheck protection loans eligible for forgiveness of amounts expended for payroll costs and payments of interest on mortgage obligations, rent, or utilities during the eight-week period such loans are provided. (Sec. 1107) This section provides specified appropriations for • paycheck protection loans, • salaries and expenses of the SBA, • necessary expenses of the Office of Inspector General of the SBA, • awarding of grants for entrepreneurial development, • provision of technical assistance to minority business centers by the Minority Business Development Agency, • disbursement of advances on emergency disaster loans, • SBA subsidies for certain loan payments, and • the Department of the Treasury to enable certain financial institutions to participate in the paycheck protection program. (Sec. 1108) This section authorizes the Minority Business Development Agency of the Department of Commerce to provide grants to minority business cen…