Apr 15, 2020
Over the past month, Congress has enacted three pieces of legislation (the “Acts”) aimed at helping individuals afflicted by the coronavirus and providing fiscal stimulus to restart an economy that has been devastated by the virus’s effects. The legislation has wide-ranging consequences for individuals, businesses, and the economy.
This white paper summarizes the major provisions of the three Acts. It also summarizes the actions taken by the Federal Reserve to support the economy. Finally, the paper sets out some provisions that might be included in a forthcoming fourth piece of legislation.
The three Acts are far-reaching, long, and complex. We have made every effort to be complete. But, at this early stage, we cannot ensure that we have summarized the entire legislation fully and accurately. Readers must consult with their attorneys and advisors before relying on the information contained herein.
I. Coronavirus Preparedness and Response Supplemental Appropriations Act (Bill #1) ($8.3B)
II. Families First Coronavirus Response Act (Bill #2) ($150B)
III. Coronavirus Aid, Relief, and Economic Stimulus Act (CARES) (Bill #3) ($2T)
Provisions generally in effect for 2020 only.
IV. Federal Reserve Actions
V. CARES II? (Bill #4 possible provisions)
Andrew H. Friedman is the founder and principal of The Washington Update LLC and a former senior partner in a Washington, D.C. law firm. He and his colleague Jeff Bush speak regularly on legislative and regulatory developments and trends affecting investment, insurance, and retirement products. They may be reached at TheWashingtonUpdate.com.
The authors of this paper are not providing legal or tax advice as to the matters discussed herein. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. It is not intended as legal or tax advice and individuals may not rely upon it (including for purposes of avoiding tax penalties imposed by the IRS or state and local tax authorities). Individuals should consult their own legal and tax counsel as to matters discussed herein and before entering into any estate planning, trust, investment, retirement, or insurance arrangement.
Copyright Andrew H. Friedman 2020. Reprinted by permission. All rights reserved.
Trump is clearly banking on the economy & its recovery to propel him to a second term. Surprisingly good jobs numbers today, but history says it will be some time before we get back to pre-pandemic levels. ow.ly/ntlc50A07KM ow.ly/7CgF50A07KH ow.ly/5oub50A07KL
With the PPP bill addressed, Congress considers Round 4 bill: unemployment, state and municipal support, business liability protection, tax changes to support the economy opening back up. All will be debated in possible Round 4. ow.ly/S1hw50zYMxS ow.ly/QhBw50zYMxT
As expected, Senate passes House bill making changes to PPP loan program. POTUS expected to sign. Left out of bill, allowance for businesses to write off, normally deductible expenses, if paid for by a forgiven PPP loan. Next bill? ow.ly/j5iu50zYJwF ow.ly/d3ut50zYJwB