This article was first published on March 29, 2020.
Editor's note: Oliver Wyman is monitoring the COVID events in real time and we have compiled resources to help our clients and the industries they serve. Please continue to monitor the Oliver Wyman Coronavirus hub for updates.
On March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. The $2.2 TN in aid represents an unprecedented initiative to support the US economy during the uncertainty and stress caused by the COVID19 pandemic. Oliver Wyman has parsed the Act and attending commentary and created a concise summary of these key elements:
- Over $150 BN in stimulus funding for state and local governments
- $130 BN of funding for hospitals
- Other business incentives, credits and deferrals
- $500 BN in loans for distressed companies
- $377 BN to support small businesses (generally <500 employees)
- Relief for existing and imminent regulatory requirements for financial institutions
- Relief for individuals and families (>$450 BN)
Major Components Of CARES Act: