Our WebEx discussed the SBA Loan Program under PPP and, in particular, how senior execs, board members and investors should think about their obligations. We leveraged our Lowenstein team’s experience as Attorneys General/US Attorneys/Assistant DAs/Prosecutors who led and/or were involved in investigating, prosecuting and even setting policy on post-Hurricane Sandy fraud cases and post-9/11 fraud cases. Here’s a link to a twitter thread with context/questions to consider.
Many are seeking help analyzing whether VCs are “affiliates” in a way that renders a startup or growth company ineligible for SBA Loans. We’ve been using Lowenstein Sandler's #AffiliateChecklist internally and have decided to share it (with a disclaimer). You’re welcome to share it. Link to tweet & LinkedIn sharing it.
Featuring Lowenstein Sandler's:
- Christopher Porrino, 60th Attorney General of the State of NJ;
- Elie Honig, former Asst. US Attorney in SDNY (prosecuted post-9/11 cases); former Asst. AG NJ (prosecuted post-Hurricane Sandy fraud cases); current CNN Legal Analyst;
- Kathleen A. McGee, previously, Bureau Chief for Internet & Technology, NY Attorney General’s Office;
- Kimberly E. Lomot, previously, an SBA Lending 504 Certified as Designated Attorney;
- Lowell A. Citron, Chair, Debt Financing, Lowenstein Sandler LLP; and
- Ed Zimmerman, Chair, Tech Group, Lowenstein Sandler LLP & Adjunct Prof. of Venture Capital, Columbia Business School.
See some of what we published in Forbes and additional resources:
- SBA Loans Under PPP: Please Don’t Require VC-Backed Startups To Amend Their Charters
- Wait, What?! Treasury Clarifies “Affiliation” Rules For SBA Section 7(a) Loans (& Startups Are...)
- SBA Paycheck Protection Program Update: SBA Interim Final Rule
- Lowenstein Sandler Client Alert: The Paycheck Protection Program: FOIA and Potential Implications for Applicants and Investors
- VIDEO OF OUR SBA 7(a) For Startups/VC W/ LS Team & Congressman Don Beyer (who worked on the legislation)
To see other material related to the pandemic, please visit the Coronavirus/COVID-19: Facts, Insights & Resources page of our website by clicking here.