CARES Act Payroll Protection Program

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) passed on March 27, 2020, authorizing more than $2 trillion to battle COVID-19 and its economic effects on the U.S. economy. For U.S. employers, the CARES Act provides significant support in the form of loans for small businesses, a loan forgiveness program to encourage employers to retain their workforces during this difficult time, and expanded unemployment benefits applying in most cases to terminated employees, furloughed employees, and those given reduced hours. It also significantly expands the definition of who can receive unemployment benefits to include self-employed workers in the gig economy, independent contractors, and those who may not have an expanded work history.

Although a more fulsome discussion of the contents of the CARES Act can be found here, the purpose of this blog is to discuss certain provisions of the CARES Act on a high level and to identify concerns that employers may face in making the decision to furlough or reduce their workforce.Continue Reading To RIF, or Not to RIF: How federal loans can help small and mid-size businesses under the CARES Act