Companies with private equity fund investors have experienced challenges in determining whether they qualify as a borrower that is eligible to participate in the Paycheck Protection Program (“PPP”) created by the Coronavirus Aid, Relief and Economic Securities (“CARES”) Act.  This is due in large part to the provisions of the CARES Act which provide that,

The COVID-19 crisis has impacted businesses in most industries and in most developed countries.   In particular, companies are trying to decide if the effects of the pandemic, together with the associated governmental shutdowns on wide swaths of the economy, provide their business with the ability to terminate or excuse performance under an existing contract, or