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What you need to know about the CARES Act

March 27, 2020

By: Sean Mooney

Yesterday, we hosted a live “CARES Act” session in conjunction with The Cypress Group, a leading Washington DC advisory firm that advocates for the private equity industry and a member of the BluWave network. Our goal was to offer an up-to-the-minute, inside look into how the proposed bill would likely affect private equity and its portcos.

Below is a high-level overview of the $2.2 trillion package, which provides insights into how the funds are being allocated. We encourage you to listen to the live recording (30 minutes) if you want to dive into more detail. As always, feel free to reach out if we can help you in any way. Now more than ever, it’s important to ensure your companies have the agility and expertise to navigate uncharted waters.

High-level overview of the CARES Act budget allocation:

Severely Distressed Industries: $500 billion 

  • Passenger air carriers, cargo air carriers, critical to national security, supporting Federal Reserve lending facilities 
  • New oversight measures 

Payroll Protection Plan: $346 billion 

Direct Payments (Recovery Rebates): $300 billion 

Tax: $290 billion 

  • NOL carrybacks, employee retention credits 

Unemployment Insurance: $260 billion 

  • Pandemic Unemployment Assistance, $600/week for 4 months 

Healthcare: $180 billion 

  • Strategic National Stockpile, public health agencies, hospitals, COVID-19 testing 

State and Local Governments: $175 billion 

  • Coronavirus Relief Fund, infrastructure Education 
  • Student loan relief Housing
  • Foreclosure moratorium, mortgage forbearance 

Supplemental Appropriations: $339.8 billion