The CARES Act or Coronavirus Aid, Relief, and Economic Security Act came as a stimulus bill in 2021 says, William D King. The earlier government had already signed the bill, but it was yet to become a law. Under the presidentship of Joe Biden, the CARES act has started making headlines. The economy, which was undergoing recession for a long time, had made policymakers worried about the finances. Hence, the CARES act has come as a relief for supporting small and large businesses, individual families, independent contractors, and gig workers.
With an estimation of two trillion dollars, the act comes as a big relief package in the history of the United States. Before this, various policies like the Recovery Act, Consolidated Appropriation Act, American Rescue Plan Act got enacted. However, this act is vital for its provisions and direction. The CARES act intends to uplift the lower start of society and bring a 180-degree change in the administration. The law has allocated 150 billion dollars to localities and states who are battling with the pandemic. Apart from this, 130 billion dollars got directed towards the healthcare system that is path-breaking news.
William D King deciphers Paycheck Protection Programs
For supporting small businesses, the law has appropriate 349 billion dollars for maintaining payroll and managing overhead expenses. For keeping the workers paid and engage during trying times, the program has come as a rescue.
William D King states that PPP or PaycheckProtection Program applies to non-profit agencies, businesses of any size, veterans organizations, and tribal industries. Hence, the administration area is of paramount significance for this act. In addition, 10 billion dollars is an emergency grant for private non-profits, small businesses, and sole proprietorships.
Recipients of CARES Act
EIDL or Economic Injury Disaster Loan Emergency Program gets direction towards small businesses affecting by the worldwide pandemic. These businesses may apply for this loan open $1000, which is not to get repaid. Apart from this, unemployment insurance is also a critical part of the CARES act. Hence, self-employed individuals, contractors, and those individuals who have lost their work because of the pandemic come within the ambit of this act. However, individuals who can continue their job get freed from this program.
Apart from this, Pandemic Unemployment Assistance or PUA is a unique program developing for freelancers, self-employed people, and independent contractors. It is a program of regular unemployment benefits to the affected workers for 26 to 39 weeks. Hence, these individuals will be eligible for the payment of advantages because of their unemployed status. PUA or Pandemic Emergency Unemployment Compensation establishment by the CARES act. To extend the usefulness to an unemployed individual for 13 weeks.
At present, the CARES act extends to the healthcare sector and plays a vital role in economic stabilization. The act has taken first place in the coronavirus relief program by way of rental relief and mortgage. Lastly, local and state governments have received more than 150 billion dollars as assistance through the coronavirus Relief Fund. Hence, it is impacting human life in every possible way.