April 24, 2020 / 1:35 PM / a month ago

U.S. requires equity stakes from national security firms seeking COVID aid

WASHINGTON, April 24 (Reuters) - The Treasury Department will ask for an equity stake in publicly traded national security contractors, including some defense firms, that seek part of $17 billion set aside for them in coronavirus relief funds.

According to a loan application posted on the Treasury website late Thursday, companies with a Top Secret clearance working for the U.S. government and others with contracts related to the defense production act should submit a loan request by May 1.

The Pentagon has been working to shore up finances among defense contractors that may have seen a fall-off in their non-defense business as quarantining to prevent the spread of the new coronavirus has halted much of the U.S. economy.

The loan application says that “to receive a loan, each borrower must provide the Treasury Department with appropriate financial instruments.”

Reporting by Chris Sanders; Editing by Steve Orlofsky

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