Quick Guide for Seed/Series A Companies. This is being continuously updated (last updated 4/3, 13:41 British Summer Time).
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💡 TLDR: It's possible most seed-stage and many Series-A businesses can qualify for this. Key question is ownership and control of voting stock of business.
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💡 There are many different forms of relief offered by the CARES Act. This guide is particular to the SBA Lending Facility provided by Section 1101-1107. This is not a recommendation that you apply now. And understand that applying for relief under a different section of the CARES Act might impede your progress in obtaining a loan under Section 1101-1107.
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💡 Do you want to move quickly for the sake of your business and your employees. What can you do now? Prepare to apply.
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Summary of Loans Available to Small Businesses from Stimulus Package
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Small Business Lending Facility (Section 1101-1107): $350b program. Most generous loan terms. Turns into grant for companies that maintain payroll, among other things. This is the loan summarized on this site.
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Federal Reserve Main Street Lending Facility and Treasury Mid-Size Business Lending-Facility (Section 4003): $454b program.
- Main Street Lending Facility: Built by Fed to serve businesses of all sizes with loans, loan guarantees, and other investments.
- Treasury Mid-Size Business Lending Facility: For businesses between 500-10,000 employees. Lending facility to provide direct financing to banks and other lenders that make direct loans to companies between 500-10,000 employees. Rates capped at 2% and require 6-month grace period before repayment. Other requirements:
- Uncertainty in economic conditions make the loan necessary to support operations.
- Funds must keep at least 90% of workforce retained.
- Firm will restore employment levels to 90% of employment and compensation as of Feb 1 within four months of the termination of the public health emergency.
- Limit share buybacks, offshoring, and anti-unionization.
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More detailed information, continuously updated, here:
NVCA Response to COVID-19