What insurance businesses need to know about the CARES Act

U.S. President Donald Trump signs the H.R. 748, Coronavirus Aid, Relief, and Economic Security (CARES) Act, in the Oval Office of the White House in Washington, D.C., U.S., on Friday, March 27, 2020. Trump signed the largest stimulus package in U.S. history today, a $2 trillion bill intended to rescue the coronavirus-battered economy after the House approved it earlier. (Photo: Erin Schaff/The New York Times/Bloomberg)

The recently passed Coronavirus Aid, Relief and Economic Stimulus Act (CARES Act) establishes several new avenues for businesses to combat the financial repercussions of the COVID-19 crisis. Among other things, it creates unique loan programs for small and midsize businesses and extends unusual tax benefits as an incentive for businesses to keep employees on the payroll.

This legislation, however, was drafted in an unusually short period of time. As such, information regarding the administration of its provisions is sparse and constantly evolving.