Introducing Volcker 2.0: What has Changed and What You need to Know

On June 25, 2020, the Federal Deposit Insurance Corporation (FDIC) announced revisions to the Volcker Rule taking effect in October 2020. In summary, this change weakens restrictions against larger financial institutions on (1) proprietary trading and (2) investing in private equity funds, including venture capital funds. What is the Volcker […]

Affiliation Under the CARES Act: The Impact on Venture-backed Startups

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 […]

Employee Retention Tax Credit Under the CARES Act

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 […]

How Did CARES Impact Emergency Economic Injury Disaster Loans?

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 […]

Paycheck Protection Program – A Brief Overview

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 […]

COVID-19 Relief Programs for Small Businesses and Startups

Federal, state, and local relief for COVID-19 offer ample opportunities for small businesses and startups during this financial and health crisis. On a federal level, three core stimulus packages have been signed into law: Family First Coronavirus Response Act, Coronavirus Preparedness and Response Supplemental Appropriations Act, and Coronavirus Aid, Relief, […]