Representatives for venture-backed startups are pushing for the companies to get access to $349 billion in small business loans authorized by Congress as part of its economic relief plan for Covid-19. So far it appears that many such businesses won’t qualify.
On Tuesday, the Treasury Department and the Small Business Administration provided new details about which businesses could get the funding, aimed at companies with 500 or fewer employees. While many young tech companies are small enough, provisions on disclosures and investor ownership may prevent traditionally structured startups from being eligible for the loans.
