The little guy

30 March 2020 By Gina Chon Follow @GinaChon

Many Silicon Valley firms will miss out on $350 bln in new small business loans. In some cases, entities with the same venture capital investor are lumped together, pushing them above the 500-employee limit. Big players like Google can further entrench themselves.

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The U.S. House of Representatives on March 27 approved a $2.2 trillion emergency relief package to help workers and businesses during the coronavirus-related economic shutdown. The U.S. Senate passed the bill on March 25. It provides $350 billion for loans to small businesses, which Treasury Secretary Steven Mnuchin said should be available starting on April 3, according to Fox Business Network.

Firms with less than 500 employees, including affiliates, are eligible. Government rules count businesses that have the same owner or investors that have control through ownership stakes or management decision-making authority as affiliates. Such rules will be waived for the accommodation and food services sectors.

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