COVID-19 Alert #6 - The CARES Act: Businesses in the Middle Market Face Uncertainty

The CARES Act: Businesses in the Middle Market Face Uncertainty

While Title IV of the CARES Act, signed by the President on March 27, 2020, urges the Secretary of the Treasury to utilize a portion of $454 Billion of funding to support loans to businesses with 500-10,000 employees, how exactly companies will qualify for such loans – particularly those in industries that are not immediately impacted by COVID-19 social distancing – is not made clear. Boards of Directors are required to make critical decisions about the likelihood of receiving CARES Act relief with limited guidance. Private equity firms, when their aggregate ownership of companies creates 500+ employee businesses, face similar challenges.

Read the full client alert below.