ABSTRACT

Business Use of Tax and Other Provisions in the Cares Act and Other COVID-19 Legislation: Evidence from Surveys [Updated July 23, 2020]   [open pdf - 558KB]

From the Document: "The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) provided a range of benefits to businesses and their employees. [...] Three of the act's major programs are mutually exclusive (overall, or at least with respect to a given employee) and require employers to decide about whether to retain workers and how to pay them. [1] The Paycheck Protection Program (PPP) for small businesses allowed low-interest loans that could be forgiven if employees were retained. [2] Expanded unemployment insurance (UI) benefits helped workers laid off or furloughed (as well as the small number of employees using work sharing under short-time compensation [STC]). [3] The employee retention tax credit (ERTC) provided a credit for 50% of wages up to a ceiling for retained workers. [...] The PPP's popularity led to an expansion of the $349 billion initially authorized, with $310 billion added in the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139). The Federal Reserve also instituted some additional lending programs, including the Main Street Lending Program to provide delayed and low-interest loans. The CARES Act includes a number of authorizations for funding for Treasury and the Federal Reserve."

Report Number:
CRS Insight, IN11430
Author:
Publisher:
Date:
2020-07-23
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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