ABSTRACT

Restrictions on Compensation Under the CARES Act [June 12, 2020]   [open pdf - 795KB]

From the Document: "The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) was enacted to assist those affected by the economic impact of Coronavirus Disease 2019 (COVID-19). A key part of this assistance is provided to eligible businesses, states, and municipalities in Division A, Title IV of the act. Section 4003 allocates $500 billion to the Department of the Treasury (Treasury) to make loans or loan guarantees to certain industries and to support Federal Reserve lending facilities. Section 4112 allocates $32 billion to Treasury to provide financial assistance to the aviation industry for employee wages, salaries, and benefits. Some have characterized these provisions as a 'bailout' of private industry; others assert they are necessary to avoid employment losses and maintain economic stability. [...] Recipient firms of this financial assistance must meet a number of requirements. In some cases, these include restrictions on compensation at firms receiving assistance under Title IV of the act. This Insight gives an overview of those restrictions."

Report Number:
CRS Insight, IN11422
Author:
Publisher:
Date:
2020-06-12
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations