Tuesday, May 5, 2020; 2 p.m. EDT.
Topics included:
- What do Board Members/Executives need to do/know?
- How best to deliberate & document process?
- What are the “No-Nos” that inform the decision to repay a loan or pull a loan application?
- What does FAQ #31 & SBA IFR #4 require a venture fund to do? What must a Board do?
- What does the “Mnuchin Line” ($2M loans) mean for whether your startup’s loan will be “investigated” and how?
- Does asking for loan forgiveness or shrinking the loan size make a difference in liability/scrutiny?
- What info about my loan will become public under FOIA (Freedom of Information Act)?
- How will future financings, M&A, and IPOs be impacted in the coming years by these loans?
- What will LPs ask in fundraising about loans in the portfolio?
- The “need” standard is vague, so what will prosecution look like?
- What is Qui Tam, and why do we care? What does PRIVATE ENFORCEMENT look like, and why are there financial incentives for private parties?
- What did startups likely get “wrong” in their loan applications or analysis?
Speakers:
- Kathleen A. McGee, former Bureau Chief for Internet & Technology, NY Attorney General’s Office; Director, Mayor Bloomberg’s Office of Special Enforcement; Assistant District Attorney, in the Bronx, NY.
- Kimberly E. Lomot, previously certified as a Designated Attorney for SBA 504 Lending, counsels both borrowers and lenders with respect to government guaranteed loans, including SBA (7a) and 504 loans.
- Ed Zimmerman, Chairs Emerging Companies & Venture Capital (fka, The Tech Group) at Lowenstein Sandler and, for the last 15 years, has been an Adjunct Professor of VC at Columbia’s MBA Program. Chambers USA ranked Ed among the 22 best lawyers in Startups & Emerging Companies–USA–Nationwide; of those, Ed is the only lawyer based in New York (2018). Best Lawyers in America (2017) named Ed the New York City Venture Capital Lawyer of the Year.
Notes:
- Ed, Kathleen, and their colleague (57th Attorney General of New Jersey, Anne M. Milgram) recently published in The National Law Journal a proposal for a more comprehensive Amnesty Program in connection with returning PPP Loans. Worth a quick read because it also highlights the inadequacies of the Limited Safe Harbor (which ends on May 7).
- Ed & Kathleen were both quoted in The New York Times re: PPP Loans for startups (April 17) and The Wall Street Journal (April 21). They coauthored "PPP Loans For Startups/Growth Companies—Former Attorney General’s Perspective—Lessons From Hurricane Sandy & 9/11" in Forbes (April 14). On Saturday, Ed was quoted in Business Insider regarding PPP Loans and Treasury’s FAQ 31 and returning loans. Kim has also published numerous pieces on PPP Loans, including "Heightened Scrutiny for Public Companies and Portfolio Companies of Funds for PPP Loans and No PPP Loans for Funds Themselves" (April 24).
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