The Department of the Treasury considers safeguarding a $17B loan program for eligible national security companies under the Coronavirus Aid, Relief and Economic Security Act in the event that Boeing (NYSE: BA) and General Electric (NYSE: GE) find themselves in need of funds, Bloomberg reported Tuesday.
The Department of Defense said applications for loans under the CARES Act were due May 1 and approximately 20 contractors applied for the relief package.
GE and Boeing raised funds through bond offerings, divestiture and other initiatives.
Lt. Col. Mike Andrews, a DoD spokesman, said the Pentagon “has and continues to work” with Congress, Treasury, other agencies and industry groups to address the implications of the COVID-19 pandemic for national security firms.
Treasury Secretary Steven Mnuchin said he was considering loosening the rules for the relief funds intended for national security businesses.
“We have thought about that, we’re taking that into consideration,” Mnuchin told reporters last week during a video conference. “If for whatever reason we don’t have enough demand for that money, we may go back to Congress and ask them to reauthorize that.”