The CARES Act that provides incentives for employers to retain employees during the COVID-19 pandemic is a step closer to being replenished.
The U.S. Senate approved an additional $484 billion for the portion of the Coronavirus Aid, Relief, and Economic Security Act that provides small business loans. Of that, $321 billion is earmarked for the Paycheck Protection Program, which lets small business take out forgivable loans to cover payroll.
The replenishment still needs approval from the House of Representatives and the president.
The loans, to businesses of 500 or fewer employees, are forgiven if used towards approved expenses including payroll, rent, and utilities. The forgivable amount begins to fall when a business lets go of staff, providing incentive for companies to retain employees.
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