The $2 trillion CARES Act set aside $377 billion for small businesses. While startups are doing everything they can to extend their runway, there is confusion on if and how the CARES Act applies to startups and what startups need to do to access this funding as quickly as possible. In this #DreamitLive episode we discuss:
5:00 - Defining small businesses and who qualifies for CARES Act loans
6:00 - Do you need to rush to your bank to get this money?
7:00 - Who is entitled to these funds?
9:00 - What is the process of getting the loan? How does the loan get forgiven or turn into a grant?
11:00 - How does your business stay alive while waiting for this loan or crossing the “Covid Chasm”? What if you downsize? Will this affect your forgiveness of the loan?
13:30 - How do banks estimate what size loans you will get?
17:00 - Why employee headcount is so important when using CARES Act loans
23:00 - When will the money show up and get processed?
25:00 - Furlough vs. laying off employees? Providing health insurance?
26:00 - What should small startups with 15 employees or less expect?
29:00 - Understanding SBA rules around affiliation rules, when your venture fund has “effective control” of your startup
37:00 - Four pieces of advice for startups on taking advantage of the CARES Act
43:00 - Who should you turn to for advice and guidance on loans through the CARES Act
45:00 - What should you AVOID doing if you’re trying to get this loan?
47:00 - What types of things can the loan money be used for? Is it general-purpose money? Payroll requirements?
52:00 - Do these loans apply for overseas employees?
53:00 - How does the loan forgiveness process work?
Steve Barsh, Managing Partner of Dreamit Ventures will host and be joined by Duncan Davidson, General Partner of Bullpen Capital, who has read the full CARES Act multiple times and digested what it means for startups. Duncan is a highly experienced VC and a serial entrepreneur, having founded, been on the executive team, or a Board member of multiple billion-dollar companies.
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