Covid-19 coronavirus: an overview of U.S. federal legislation phase 3: the U.S. CARES Act
27 March 2020
This note summarizes the important legal changes for U.S. businesses coming out of the historic Covid-19 coronavirus stimulus package passed by Congress on March 27, 2020.
On March 27, 2020 Congress passed and the President signed the "Coronavirus Aid, Relief, and Economic Security Act," H.R. 748 (the "CARES Act"). The CARES Act provides an unprecedented $2 trillion stimulus package addressing the economic fallout from Covid-19.
The CARES Act is the last and most significant piece of a three-phase set of legislation addressing economic, public health, regulatory, and funding concerns in light of Covid-19. Allen & Overy has previously provided summaries of the Phase 1 and Phase 2 legislation.
This note provides a guide to the two sections of the CARES Act that will be most immediately relevant to most U.S. business:
- Tax relief provision for business, and
- The economic stabilization act.
A full list of topics addressed in the CARES Act is included as Appendix A. The topics from the Phase 1 and Phase 2 laws are included in Appendix B for reference.
Allen & Overy continues to monitor all developments with the Covid-19 laws. We will update this note as the laws develop. We encourage you to contact us with any questions on any aspect of these laws.