Venture-backed startups and other small businesses with investors or subsidiaries may not be eligible for the 7(a) small business loan program pursuant to the Paycheck Protection Program (PPP) due to the affiliation rule. The small business lending facility under the PPP allocates $349B for small businesses. An eligible business may […]
The Employee Retention Credit established by the CARES Act provides a tax break for employers that do not reduce their workforce. The goal of this program is to incentivize employers to maintain their employees to avoid the continued increase in unemployment. Tax Credit Calculation Eligible Employers may receive a payroll […]
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act established a $2T stimulus package to support the economy during the COVID-19 crisis. Section 1110 of CARES expands eligibility and allocates $10B of additional funding for Small Business Administration’s (“SBA”) Economic Injury Disaster Loan (“EIDL”) program. There are important distinctions between […]
The Paycheck Protection Program (“PPP”) is a core program of the CARES Act relating to small business and startup companies. This program allocates $349B to eligible small businesses supporting payroll, rent, mortgage, and other expenses. Regulators will provide guidance on this new law in the coming weeks, but this post serves […]