Guidance for companies and other entities seeking financial stabilization
Title IV of the CARES Act was enacted into law as a stimulus response to the novel coronavirus pandemic. This legislation allows for grants, loans, and direct investment for companies that experience material losses due to the impact of COVID-19. Potential applicants for stimulus funding must understand the process that the US Department of Treasury will use to decide on an investment, fund it, and then follow up on it.
There are three phases involved when receiving support under Title IV. These refer to the financial relief companies can apply for and are separate from the tax relief provisions and paycheck protection program for small businesses.
Entities interested in support under Title IV should be familiar with the four forms of government assistance available. These include single and multi-award grants, loans, loan guarantees, and equity.
For many companies and organizations, the application, monitoring, compliance, accounting, and reporting requirements required by this stimulus will be a burden—one they are not prepared to shoulder. Guidehouse has the experience and knowledge of our clients’ operations and the execution of similar programs by the US Federal Government to support a wide variety of entities during this crisis. During the financial crisis beginning in 2007, Guidehouse helped Treasury stand up TARP, creating the accounting, internal controls, and strategy. We also helped numerous agencies and companies implement the American Recovery & Reinvestment Act of 2009 (ARRA), which—similar to the CARES Act—carried detailed reporting requirements on use of ARRA funds. We understand from our experience what entities that receive these stimulus funds will have to do, and we are here to help, specifically with: