Why You Should Care About the CARES Act

The last few weeks have been very surreal as we have all watched the world, our country and our communities affected by this pandemic. As we all face the financial impact of suddenly shutting down large portions of our economy to comply with “shelter in place” orders, we find that the world around us is changing. We are witnessing innovation as businesses redesign operations and, in some cases, quickly pivot to an entirely new business model. Many schools and businesses are utilizing virtual classrooms and workloads to continue adding value during this time of social distancing.

In many attempts to add economic relief, the government has stepped in. The Federal Reserve has acted quickly to add some much needed liquidity to the financial system. And now Congress has taken a huge step as well.

On March 27, the President signed the largest economic relief package in U.S. history. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) attempts to rescue individuals, small businesses, borrowers, and certain sectors of the economy including airlines and health care.

The CARES Act will provide meaningful relief as detailed below:

Please CLICK HERE to find a high level comprehensive overview of the act. Please take the time to read through it as you might be surprised to find a provision that could enhance your personal situation. As you will see, this act is three times the size of the 2008 “TARP” package.

This much needed liquidity will help millions of individuals and businesses. We are here to help you understand how it might impact your financial plan. Feel free to reach out to us should you have any questions.

Your Team at Main Street Research