Amid concerns that startups could be left out of COVID-19 bailout, investors step up lobbying – TechCrunch
There appear to be two issues for startup entrepreneurs with the different types of loans that companies can receive.
The first is the “Affiliation Rules” that the Small Business Administration (SBA) uses to determine who is eligible for loans.
While the EIDLs may be interesting, the biggest issue is the lack of clarity around affiliation rules, Justin Field, NVCA’s senior vice president of government affairs, tells me.
“These rules will make it more difficult for small businesses with equity investors to even understand if they can access the program,” he says.
When implementing the CARES Act, we urge the SBA to issue guidance that makes clear affiliation rules do not arbitrarily exclude our most innovative startups.”
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
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