Click here to read additional updates in the Debevoise Coronavirus Resource Center.

• Late last night, the U.S. Senate passed the CARES Act, powerful economic stimulus legislation in response to COVID-19. We expect rapid approval by the House and enactment of the legislation.
• The legislation appropriates hundreds of billions of dollars for loan programs that will be available to businesses of various sizes and for support to Federal Reserve programs to provide liquidity to the economy. Some of the loans may be forgiven, effectively making them grants.
• The legislation also includes bank regulatory changes and establishment of an oversight framework for the lending programs.
• Further, the CARES Act provides tax relief to individuals and businesses through rebate checks, the easing of rules on the use of net operating losses and interest deductions and allowing businesses to convert tax attributes to tax refunds.