Guide to #PPPloans & SBA affiliation rules for the perplexed…
Here's the full SBA compliance guide, which neither Congress nor Treasury/SBA have changed in the least:
sba.gov/sites/default/…
I've crossed out the parts that *don't* apply to #PPP borrowers (and never did).
1/
Here's the rub:
"SBA will deem a minority shareholder to be in control, if that individual or entity has the ability, under the concern's charter, by-laws, or shareholder's agreement, to prevent a quorum or otherwise block action by the board of directors or shareholders."
2/
Startups & investors are scrambling to figure out if they need to change their agreements to clear up this ambiguity—or if that's even possible.
And it's way more complicated than it looks, as explained in this memo via @nvca:
3/
nvca.org/wp-content/upl…
@msuster nails it:
4/
Deeper dive here:
5/5
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