gener8tor Founder Guidance Update

April 6, 2020 Update

Founders,

Please review this fourth Founder COVID-19 Guidance. This follows an update we sent last week on the CARES Act Paycheck Protection Program. Additionally, anyone wishing to get help from our team is welcome (1) to individually reach out; (2) sign up for our Emergency Response Program; and, (3) to review the webinars and links on our Resources page.

We have four items to highlight:

Everyone needs to default to assuming you are applying for PPP unless you have a really compelling reason why not to participate. If you have not already applied please contact your bank (if not multiple banks) and apply for the Paycheck Protection Program ASAP as the line is first come first serve. You can search for banks offering PPP loans in your community here and access the SBA background on the program here. Notably local and regional banks appear to be more aggressive in working with startup businesses than the bigger banks.

If you have not already, apply for the SBA Disaster Loans (Economic Injury Disaster Loan or EIDL). In short there’s no pre-payment penalty, the queue to apply is getting longer by the hour, and any federal aspects like loan forgiveness may still require you to apply for the current program. By applying, you are also eligible for up to a $10,000 Emergency Grant. You can receive the grant, and turn down the broader loan. Apply here.

Per our previous guidance, check out your state-based programs for grant/loan relief.

We have compiled background decks on the updated SBA Disaster Loans, CARES Act, and another covering Employment and Tax Law changes in the last few weeks. Anyone wishing for individual help with these programs should contact Troy and me.

Everyone should also take 15 minutes and check out their state programs for small businesses. Many states are doing low-interest loans matched against grants for participating small businesses. If anyone has questions about their state effort please let us know.

We have heard of substantial delays in processing the SBA Disaster Loan emergency grants as well as delays in processing PPP applications. We have also had our first startups reporting that they are able to access the PPP loan program. In sum, please be aggressive in seeking this relief.

And as always if you have any questions please feel free to reach out to us.

Regards,

Joe, Troy, Abby, Maggie, and the gener8tor team