Existing Restrictions May Preclude PE-Backed Small Companies From Getting Relief Under The COVID-19 Stimulus Bill

As we start this week, lawmakers on Capitol Hill continue their efforts to overcome differences on the proposed legislation to provide emergency assistance to individuals, families and businesses affected by the coronavirus pandemic.

The legislation proposed by the Senate includes approximately US$300 billion in small business interruption loans, as well as up to US$500 billion in assistance to distressed businesses, states and localities, either in the form of a direct loan or backstop of losses in lending facilities launched or expanded by the Federal Reserve.