Quick update on this - hearing that the SBA is working expeditiously to release a new (and potentially streamlined) 7A application for the CARES/PPT loan program along with updated guidance on eligibility.
Final Affiliation rules guidance from the SBA - unfortunately did not resolve the concern that venture-backed companies had raised. sba.gov/sites/default/…
From the guidance: "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."
Full employment act for corporate lawyers and will introduce delays in accessing capital.
BTW - huge shoutout to the @nvca team for their tireless advocacy on behalf of the entrepreneurial ecosystem throughout this process. They have done an incredible job in working with legislators and the agency folks!
