Many businesses challenged by the economic conditions caused by COVID-19 are seeking relief from the Paycheck Protection Program only to find themselves ineligible due to its employee eligibility requirements. Financial assistance may be on the horizon for mid-sized and larger businesses. This Legal Update discusses the anticipated financial assistance from the United States Treasury Department for mid-sized and larger businesses. For resources on the different aspects of the CARES Act, please see other Legal Updates on the COVID-19 von Briesen Task Force Resource Page.
Many businesses have found that they do not qualify for financial assistance under the Paycheck Protection Program (“PPP”). However, a business in this circumstance still may qualify for a different assistance program under the CARES Act. The CARES Act set aside at least $454 billion for financial programs to assist eligible businesses (“4003(b)(4) Programs”). The Federal Reserve and Treasury has yet to provide additional information regarding the terms of, and application processes for, loans originated under the 4003(b)(4) Programs.Read More