CTC participated in a broad technology coalition led by TechNet seeking to ensure venture-backed startups can participate in CARES Act small business lending programs.

Under traditional small business rules, companies with significant external ownership face restrictions when seeking SBA lending opportunities. This change was initially designed to limit the potential participation of subsidiaries of large corporations and has been a sticking point for companies with majority venture ownership for many years.

The issue was a driving motivation for Dr. John Holaday, former CTC Fellow and a major champion since the early 2000’s on opening SBA lending to startups.

Earlier today, Speaker Pelosi and Congressman Ro Khanna sent a letter to the Administration seeking quick clarification of these rules to ensure startups can participate.

The SBA COVID-19 overview is AVAILABLE HERE.

The letter is AVAILABLE HERE.

Washington Post coverage of the issue is AVAILABLE HERE.