How the CARES Act will affect supply chains

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package, provides emergency funding for individual Americans, businesses and industries as the economy grapples with COVID-19 response efforts and disruptions to daily life. "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," the U.S. Chamber of Commerce said in a statement applauding the bill’s passage. While the CARES Act offers financial support, "It's more like a band-aid right now in the short term, and we're all hoping for the best in terms of the time to recover," LevaData CEO Rajesh Kalidindi told Supply Chain Dive in an interview. "Do we think that being out of work and getting $1,200 per person actually is enough stimulus to get through even a couple of months? I think the situation is very similar for the manufacturers and these companies. It will not be enough." The effectiveness of the legislation will depend on how quickly the government can get funding to businesses that need it, and on how long the coronavirus causes global disruptions, Kalidindi said. Otherwise, he said, it will only be a matter of weeks before businesses ask the government to do more to avert a deeper economic crisis.