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I spent today understanding the Paycheck Protection Plan (PPP) portion of Friday's stimulus bill (CARES Act).
I wrote a FAQ for startups and small businesses not bad enough to need or qualify for SBA disaster loan but hurting.
Corrections welcome! https://girdley.com/paycheck-protection-plan-ppp-faq-for-small-business-owners-and-startups/
I wrote a FAQ for startups and small businesses not bad enough to need or qualify for SBA disaster loan but hurting.
Corrections welcome! https://girdley.com/paycheck-protection-plan-ppp-faq-for-small-business-owners-and-startups/
Here's the application in this thread: https://twitter.com/timhanso/status/1245085084740251649?s=20
For those concerned with Affiliation concerns in the PPP program, this is a good piece.
https://twitter.com/edgrapenutzimm/status/1245235176034140160?s=21
Net-net: startups should go ahead and apply if they think they are deserving. Even still, the issue should get clarified in the rule making process happening now. https://twitter.com/edgrapenutzimm/status/1245235176034140160
https://twitter.com/edgrapenutzimm/status/1245235176034140160?s=21
Net-net: startups should go ahead and apply if they think they are deserving. Even still, the issue should get clarified in the rule making process happening now. https://twitter.com/edgrapenutzimm/status/1245235176034140160
Treasury released a faq on the PPP program with some new rules.
https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
As predicted, the affiliation issue to be cleaned up in the rulemaking process: https://twitter.com/danprimack/status/1245770562229731329?s=20
Looks like PPP apps may be getting delayed due to federal whatever whatever: https://twitter.com/BrockBlake/status/1245776236720226305?s=20
Whatever pissing match was going on between SBA and Treasury, it looks like Treasury won.
This got published tonight from Treasury:
https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf
This got published tonight from Treasury:
https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf
A quick read through and the only big changes I see are:
the interest rate going to 1%
clarity on independent contractors
underwriting rules
SBA seemingly getting out of the way
the interest rate going to 1%
clarity on independent contractors
underwriting rules
SBA seemingly getting out of the way
For those of you worried about affiliation rules:
https://twitter.com/texasvc/status/1245875149095698433?s=21 https://twitter.com/texasvc/status/1245875149095698433
https://twitter.com/texasvc/status/1245875149095698433?s=21 https://twitter.com/texasvc/status/1245875149095698433
New application revision from Treasury:
https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
The one above is being stated at the final final.
SBA may still issue more rules today evidently.
Good news is we have two gov’t agencies involved in this because one agency would have been too efficient, I guess.
SBA may still issue more rules today evidently.
Good news is we have two gov’t agencies involved in this because one agency would have been too efficient, I guess.
Well, some banks are taking and submitting applications. https://twitter.com/stevenmnuchin1/status/1246055354628218881
Sounds like VCs firms will be saved from Affiliation challenges on PPP.
PEs getting what they deserve :-) https://twitter.com/danprimack/status/1245770562229731329?s=20
PEs getting what they deserve :-) https://twitter.com/danprimack/status/1245770562229731329?s=20
The money is going to go quickly. Get apps in asap.
At this rate, we’ll run out of PPP money before we get to 900k businesses helped. https://twitter.com/sbajovita/status/1246090196308963329
At this rate, we’ll run out of PPP money before we get to 900k businesses helped. https://twitter.com/sbajovita/status/1246090196308963329
As one might guess, the smaller the bank, the faster they appear to be moving.
Bodes well for rural America, likely.
https://twitter.com/timhanso/status/1246140907151192065?s=20
If you're a worried customer of a big national trying to do PPP, you're right to be worried.
Bodes well for rural America, likely.
https://twitter.com/timhanso/status/1246140907151192065?s=20
If you're a worried customer of a big national trying to do PPP, you're right to be worried.
Affiliation rules are out from the SBA.
https://home.treasury.gov/system/files/136/Affiliation%20rules%20overview%20%28for%20public%29.pdf
https://home.treasury.gov/system/files/136/Affiliation%20rules%20overview%20%28for%20public%29.pdf
We’ll see what the other readers of these new Affiliation rules think, but I don’t see how they help VC or investor/angel backed companies.
Nor PE for that matter.
Interesting that it took this long for SBA to give the middle finger to startups!
But I guess SBA gonna SBA.
Nor PE for that matter.
Interesting that it took this long for SBA to give the middle finger to startups!
But I guess SBA gonna SBA.
Funny that these new affiliation rules aren’t in the same format as the stuff usually from Treasury.
Smells like SBA (which doesn’t seem like a high-performing org) wrote them and Treasury just published them.
Such weirdness.
Smells like SBA (which doesn’t seem like a high-performing org) wrote them and Treasury just published them.
Such weirdness.
Seems I’m not the only one thinking this affiliation clarification doesn’t help investor backed startups.
https://twitter.com/skupor/status/1246273365586759681?s=21 https://twitter.com/skupor/status/1246273365586759681
https://twitter.com/skupor/status/1246273365586759681?s=21 https://twitter.com/skupor/status/1246273365586759681
Affiliation and PPP...
Hope the rules keep evolving to a better place.
The easy solution was for SBA to exempt from SBA’s definition of control certain things like indebtedness limits, anti-dilution, etc. that are in all preferred stock agreements.
https://twitter.com/mattkelty/status/1246271597536784390?s=21 https://twitter.com/mattkelty/status/1246271597536784390
Hope the rules keep evolving to a better place.
The easy solution was for SBA to exempt from SBA’s definition of control certain things like indebtedness limits, anti-dilution, etc. that are in all preferred stock agreements.
https://twitter.com/mattkelty/status/1246271597536784390?s=21 https://twitter.com/mattkelty/status/1246271597536784390
On a positive note, the @nvca hasn’t done any “oh well we tried” statement about the Affiliation rules precluding startups from using PPP, so likely lots of lobbying happening behind the scenes.
Now we wait.
Now we wait.
Sen Rubio espousing on PPP.
Notable is his admission that Affiliation is still a problem for investor-backed companies despite last night’s “clarification.”
https://twitter.com/marcorubio/status/1246396179744731136?s=21 https://twitter.com/marcorubio/status/1246396179744731136
Notable is his admission that Affiliation is still a problem for investor-backed companies despite last night’s “clarification.”
https://twitter.com/marcorubio/status/1246396179744731136?s=21 https://twitter.com/marcorubio/status/1246396179744731136
Good thread by an attorney on the Affiliation stuff.
https://twitter.com/trevorloy/status/1246304717501693954?s=21 https://twitter.com/trevorloy/status/1246304717501693954
https://twitter.com/trevorloy/status/1246304717501693954?s=21 https://twitter.com/trevorloy/status/1246304717501693954
. @trevorloy is keeping a list of lenders doing PPP.
Breaking it into those accepting new clients and those that aren’t.
https://twitter.com/trevorloy/status/1246483392914309120?s=21
Of course, you can use Trans Pecos also via the link I shared earlier. https://twitter.com/trevorloy/status/1246483392914309120
Breaking it into those accepting new clients and those that aren’t.
https://twitter.com/trevorloy/status/1246483392914309120?s=21
Of course, you can use Trans Pecos also via the link I shared earlier. https://twitter.com/trevorloy/status/1246483392914309120
