CARES Act Loan Clause Samples

CARES Act Loan. The Loan Parties shall: (a) Comply, in all material respects, with the SBA’s terms and conditions applicable to the CARES Act Loan; (b) use the proceeds of the CARES Act Loans solely for “allowable uses” of proceeds of an SBA PPP Loan as described in Section 1102 of the CARES Act and solely to the extent such uses permit all of the CARES Act Loan to be eligible for forgiveness; (c) promptly (and in any event within five (5) Business Days) upon receipt or delivery thereof, as applicable, provide copies of all material documents, applications and correspondence with any applicable lender or any applicable Governmental Authority received or delivered relating to the CARES Act Loan, including with respect to loan forgiveness; and (d) promptly apply for forgiveness of the CARES Act Loan and submit all documents required to obtain forgiveness or other relief of the CARES Act Loan by all deadlines required by the CARES Act (and provide documentation and status of such forgiveness to the Administrative Agent upon the Administrative Agent’s reasonable request).”

CARES Act Loan. (a) Comply, in all material respects, with the SBA’s terms and conditions applicable to the CARES Act Loan; (b) Use the proceeds of the CARES Act Loan solely for “allowable uses” of proceeds of an SBA PPP Loan as described in Section 1102 of the CARES Act; (c) Promptly apply for forgiveness of the CARES Act Loan and submit all documents required to obtain forgiveness or other relief of the CARES Act Loan by all deadlines required by the CARES Act (and provide documentation and status of such forgiveness to the Administrative Agent upon the Administrative Agent’s reasonable request); (d) Promptly (and in any event within three (3) Business Days) upon receipt or delivery thereof, as applicable, provide copies of all material documents, applications and correspondence with any applicable lender or any applicable Governmental Body received or delivered relating to the CARES Act Loan, including with respect to loan forgiveness; and (e) Deposit 100% of the proceeds of the CARES Act Loan in one or more segregated deposit accounts that shall solely be used to hold proceeds of the CARES Act Loan and no other cash or cash equivalents of the Loan Parties at any time. Each such account shall be deemed to be an Excluded Account so long as the only cash or cash equivalents of the Loan Parties in such accounts are the proceeds of the CARES Act Loan.” (f) Section 10.5 (Noncompliance). Clause (i) of Section 10.5 of the Credit Agreement is hereby amended and restated in its entirety as follows: (i) failure or neglect of any Loan Party to perform, keep or observe any term, provision, condition, covenant contained in Sections 4.6, 4.8(h), 6.1, 6.2(b), 6.2(c), 6.5, 6.6, and 6.7, 6.18, 6.19, 6.20, 6.21, Article VII, and Sections 9.2, 9.7, 9.8, 9.9, 9.10 and 9.12 of this Agreement,”.

CARES Act Loan keep detailed records of the Loan Parties’ utilization of the proceeds of the CARES Act Loan;

CARES Act Loan. Contractor is working in good faith to close any remaining portions of the CARES Act Loan, and Contractor is not aware of any fact or circumstance that would result in a failure of the conditions to close any remaining portions of the CARES Act Loan to be satisfied.

CARES Act Loan. Section 7.01 of the Financing Agreement is hereby amended by inserting a new clause (y) therein to read as follows:

CARES Act Loan. 1. keep detailed records of the Loan Parties’ utilization of the proceeds of the CARES Act Loan; 2. shall apply proceeds of the CARES Act Loan, to the payment of obligations under the MG Finance Lease Agreement when due and payable and for other purposes approved under the CARES Act Loan Agreement to the extent permissible under the CARES Act; 3. shall use the CARES Act Loan Account solely for the purpose of depositing proceeds of the CARES Act Loan and making payments in accordance with Section 5.01. 4. promptly upon repayment of the CARES Act Loan in full, all assets comprising the CARES Act Loan Collateral shall become part of the Collateral and the Borrower shall make all filings and other actions necessary to perfect and protect the security interest in such assets pursuant to the terms of the Term Loan Collateral Documents; 5. promptly provide Administrative Agent upon its request with copies of all material correspondence and documentation regarding the CARES Act Loan; and 6. use commercially reasonably efforts to ensure that, at all times, an amount equal to no less than ninety percent (90%) of the CARES Act Loan is guaranteed by the U.S. Department of Agriculture.