Highlights of the $2 Trillion Coronavirus Aid, Relief, And Economic Security Act

April 10, 2020

Coronavirus economic impact concept image
The 883-Page CARES Act signed into law on March 27, 2020, by President Trump contains a large list of provisions extending money and loans to a variety of recipients. This bulletin outlines for our clients the broad provisions of the bill that may affect them, either directly or indirectly.

For Individuals:

  • Direct deposit payments of $1,200 for persons with adjusted gross income of $75,000 or less;
  • Direct deposit payments of $1,200 for heads of household with an adjusted gross income of $112,500 or less;
  • Direct deposit payments of $2,400 for couples whose combined income is $150,000 or less;
  • These payments increase by $500 for each dependent child;
  • Eligibility for these payments phases out as these levels are exceeded; with no children, payments to individuals end at $99,000, heads of household at $146,500, and couples at $198,000;
  • Maximum unemployment benefit for each worker is increased by $600 weekly for four months, above the amount paid by state programs;
  • These unemployment benefits extend to independent contractors, self-employed individuals, and “gig economy” workers;
  • UI benefits are extended through the end of the year for eligible workers.

For Small Businesses:

  • $350 billion in loans;
  • Specifically, any business that employs 500 people or less is eligible to receive a loan under the Small Business Act, 15 U.S.C. 636(a);
  • Eligibility requirements: business was in operation on February 15, 2020, and had paid employees or independent contractors;
  • Loan is capped at lesser of $10 million or 2 and ½ times the average monthly payroll costs incurred during the year preceding the date of the loan;
  • Payroll costs include salary, wages, tips, sick and family leave and PTO, severance payments, group health payments, retirement benefits, and state and local taxes assessed on employee compensation (for employees making less than $100,000);
  • Loans do not require collateral or guarantees;
  • Small businesses that use loans to maintain payroll and associated costs, interest on mortgage obligations, rent, and utilities will have up to 100% of their loans forgiven;
  • Employers may delay payment of their portion of 2020 payroll taxes until 2021 and 2022.

For Large Businesses:

  • $500 billion in loans and loan guarantees;
  • Loans cannot be forgiven;
  • $50 billion in loans is available for passenger airlines;
  • $8 billion in loans is available for cargo carriers;
  • $3 billion in loans is available for aviation contractors;
  • $17 billion in loans is available for businesses deemed critical to the national security of U.S.
Please let us know if you need any assistance or further information regarding the CARES Act and how it applies to your specific business needs.


At IpHorgan, we offer you insight that can only be acquired and meticulously developed during our 15 year history as a team with over 200 years cumulative professional experience working on intellectual property transactions with businesses in nearly every sector of the U.S. and global economy.

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