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Industry Groups Urge SBA to Clarify Startup Eligibility Rules for Loan Program

Industry Groups Urge SBA to Clarify Startup Eligibility Rules for Loan Program - top government contractors - best government contracting event
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Industry Groups Urge SBA to Clarify Startup Eligibility Rules for Loan Program - top government contractors - best government contracting event

A group of industry organizations is calling on the U.S. government to address startups“™ need for support and clarify guidelines on a financial assistance program meant to aid small businesses impacted by the COVID-19 crisis.

In a letter to Steven Mnuchin, secretary of the Department of the Treasury; Jovita Carranza, administrator of the Small Business Administration; and Russell Vought, acting director of the Office of Management and Budget, the group requested for clear guidelines or regulatory adjustments to the small business 7(a) loan program.

The letter“™s signatories include the SmallSat Alliance, Commercial Spaceflight Federation, Financial Executives International, Dcode and ACT – The App Association.

The group is urging the SBA to issue a waiver to the “affiliation rule“ under the Coronavirus Aid, Relief, and Economic Security Act to mitigate confusion on the eligibility of private equity-backed firms seeking loan assistance.

The organizations are also recommending the SBA to allow startups to apply for a small-business status, which is intended for firms with less than 500 employees including personnel under affiliate companies.

Amid the COVID-19 pandemic and CARES Act implementation, startups have been “left without support, at a time when they most need it to keep innovating,“ the group noted.

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