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

• performing under a “DX”-priority rated contract or order under the Defense Priorities and Allocations System regulations (15 CFR part 700) (Read our LawFlash on rated contracts and orders); or
• ·operating under a valid top secret facility security clearance under the National Industrial Security Program regulations (32 CFR part 2004).

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.

Coronavirus COVID-19 Task Force

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