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The CARES Act provides a $2 trillion stimulus package in an attempt to ease some of the pain caused by COVID-19′s effects. It passed the Senate, went to the House, and was nearly sidetracked by a lone representative's insistence on members being present to vote. But the bill did get approved by the House, and was signed into law by President Trump. Here are immediate industry reactions to the bill's passage:
Marc Cadin, CEO AALU/GAMA:
"We have a tough challenge before us, but with the CARES Act signed into law, Americans will receive critical relief to put the pieces back together. The COVID-19 pandemic has impacted the health of the global economy, how businesses operate, and the lives of our loved ones, and we all have to do our part to navigate this crisis together."
Rob Neis, Partner at Eversheds Sutherland:
"The Senate version of the CARES Act includes important relief for participants in defined contribution plans, like 401(k) plans. It provides for penalty-free withdrawals of up to $100,000 if a participant or family member has COVID-19 or if the participant experiences adverse financial consequences as a result of the disease. It also increases the plan loan limit to the lesser of $100,000 or 100% of the account balance for individuals affected by the coronavirus, and it broadly waives required minimum distributions for 2020."
Ramiro A. Cavazos, President & CEO,United States Hispanic Chamber of Commerce:
"We want to thank our leaders in the U.S. House of Representatives, the U.S. Senate, and the Federal Administration for their swift action to provide emergency economic relief for our small business owners to address their immediate cash flow concerns. We look forward to continuing to work together on any future legislation with our colleagues in Congress including the Senate Committee on Small Business and Entrepreneurship chaired by Senator Marco Rubio (R-FL), and the House Committee on Small Business chaired by Congresswoman Nydia Velázquez (D-NY) to make sure that our Hispanic and minority-owned small businesses and Hispanic Chambers of Commerce have access to the emergency resources they need to respond to the economic effects of the coronavirus epidemic and continue to revitalize and fuel America's economy."
Matt Peterson, Executive Director, The National Association of Government Defined Contribution Administrators:
"The National Association of Government Defined Contribution Administrators thanks Congress for its decisive action in passing the CARES Act on behalf of America's workers. The provisions related to required minimum distributions and unforeseeable emergency withdrawals allow workers to make financial decisions based on their particular situation. This flexibility is essential during an emergency, such as we're experiencing now."
Nicole Kaeding, vice president of the National Taxpayers Union Foundation:
"This is a good down payment on helping individuals stay afloat for the next several weeks."
Rick Bloomingdale, President of the Pennsylvania AFL-CIO:
"While the CARES Act provides 150 billion dollars in funding for states to acquire medical and personal protective equipment and build the necessary healthcare infrastructure, this is nowhere near enough."
Thomas J. Donohue, CEO of the U.S. Chamber of Commerce:
"We applaud Congress and the administration for working together to enact the CARES Act on a strong, bipartisan basis. Securing these funds could make the difference between keeping a business up and running over the coming weeks or being forced to reduce salaries, lay off employees, or shutter businesses entirely. No family and no business should go bankrupt because of the financial hardships caused by the coronavirus."
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