The US Department of the Treasury on April 10 released updated criteria outlining which businesses are eligible to apply for CARES Act loans out of the $17 billion allocated for businesses “critical to maintaining national security.”
To meet the Treasury’s updated criteria, at the time of application, a business must be
Businesses that do not meet either of these criteria may nonetheless be considered for a loan if the secretary of the US Department of Defense or the US director of national intelligence recommends and certifies that the applicant is “critical to maintaining national security.”
The Treasury secretary maintains ultimate responsibility to review each recommendation and determine whether the business is critical to maintaining national security. If so, then the business may apply for relief under the program. If not, the applicant business should consult other CARES Act programs to determine if other assistance may be available.
Read our LawFlash on these and other key takeaways for energy companies.
For our clients, we have formed a multidisciplinary Coronavirus COVID-19 Task Force to help guide you through the broad scope of legal issues brought on by this public health challenge. We also have launched a resource page to help keep you on top of developments as they unfold. If you would like to receive a daily digest of all new updates to the page, please subscribe now to receive our COVID-19 alerts.
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
Washington, DC
Paul M. Bessette
Pamela Tsang Wu
Ariel E. Braunstein