Active Members - Illinois Venture Capital Association
Letters in Support of Suspending "Affiliation Rules" For COVID-19 Relief Program

Letters in Support

of Suspending "Affiliation Rules"

For COVID-19 Relief Program

April 23, 2020

 


Illinois Delegation Reps Krishnamoorthi, Schneider, Rush, and LaHood advocate for clarity on "Affiliation Rules”. Our sincere thanks to Rep. Raja Krishnamoorthi and his staff for leadership on this critical point. (4/2/2020)

“Without clear guidance enabling startups and other small businesses supported by equity investment to access the 7(a) loan facility, many of these companies will be rendered ineligible causing them to fail.”  Read their letter of support here.

Speaker Pelosi supports VC/PE backed companies’ access to PPP (4/2/2020)

Read her letter of support here.

NVCA request to Treasury on Affiliation Rules (4/1/2020)

"It is imperative startups and the banks who will service the loans understand that these small businesses will be eligible for PPP. We request that you update the application before businesses can apply and include in guidance clear rules that take into account the real-world role of minority investors. Rather than requiring them to make representations and certifications on actions they do not control, we request instead that minority investors be empowered to support SBA’s efforts for taxpayer protections by providing clear application of the affiliation rules that allows them to conduct appropriate oversight of the company, while avoiding requirements that these investors create criminal legal exposure for actions over which they have no control. Congress has created an incredibly powerful job retention program that, if effective, will save millions of jobs across America. Immediate clarity to the questions raised in this letter are critical to the ability of startups to preserve jobs through the economic crisis created by COVID- 19."

Read NVCA letter to The Honorable Steven Mnuchin, Secretary of the Treasury and The Honorable Jovita Carranza Administrator, U.S. Small Business Administration here.