Friday, April 3rd was supposed to be the orderly launch of the CARES Act Paycheck Protection Program (PPP) providing $349B of urgently needed funding to struggling startups and small businesses. Last Friday was anything but orderly. #DreamitLive’s three special guests, a leading banker, attorney, and investor, are all on the front lines helping startups to secure emergency funding. Jim Marshall from Silicon Valley Bank (SVB), Kathryn Hickey from PilieroMazza, and Duncan Davidson from Bullpen Capital share the most up-to-date information and what founders need to know and do to get the assistance outlined in the CARES Act. For a recording of the webinar, please visit this link.
In this episode, guests discuss…
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Biggest mistakes on applications for the PPP.
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What if you have a different deposit bank and lender bank?
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What are the timelines on loans to be processed?
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Will banks run out of funds?
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What triggers the SBA “affiliation” rules for venture-backed companies?
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How to amend by-laws and shareholder agreements?
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Should founders expect the affiliation rules to be amended this week?
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Are VCs collaborating to resolve issues related to specific startups?
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Will the SBA increase the forgiven amount beyond 2.5 x Average Payroll (and other qualified expenses) if the company guarantees the additional amount will go towards new hires and agrees to be audited on that?
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Final thoughts on the idea of necessity and the purpose of the CARES Act.