Dear Founders, 

First and foremost, I hope you and your family are staying safe and healthy, and I wish you nothing but good health in the days to come. We are all facing challenging times ahead, and we hope you take the time to take care of yourself and your loved ones. As a result of the COVID-19 outbreak, we are facing an entirely new economic climate and businesses all over the world are suffering. Startups are some of the most vulnerable and we want to make sure that founders have the resources to navigate these new waters. Please click on the links below and you will find a trove of resources that we strongly encourage you to take a look at. 

In this folder, you will find a survival guide and useful resources for founders.

DC Economic Recovery Grant - This just went live today and you'd have to apply before next March 31. DC is providing $25M in grants to small businesses to cover payroll/rent/AP.

SBA disaster loan - You've probably heard of this one (it's so popular the site is currently down). It provides up to a $2M federal loan for small businesses, and at max 4% interest for 30 years - Every company should try to get this even if you don't need it - it's good to have. This is the site to apply (it takes about 2 hours) A word of advice - Try to do it at 10 pm.

CARES loan - This is part of the big trillion-dollar stimulus package that President Trump recently authorized. Details aren't confirmed yet but it appears it will be similar to the SBA loan above with one very important exception - some portions of the loan may be forgiven (free money) for things like payroll. You can apply for this on Friday, April 3rd

  • Payroll Protection Program (PPP) Loan:

    • To help prepare for the application, we recommend that business owners begin to gather the following information and documents:

    • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports

    • Last 12 months of Payroll Reports beginning with your last payroll date and going backwards 12months (e.g. gross wages for each employee, paid time off for each employee, vacation pay for each employee)

    • 1099s for 2019 for independent contractors that would otherwise be an employee of your business

    • Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan

    • Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employee’s out of their paycheck deferrals) 

    • You can find the PPP fact sheet here

    • Please click here to access the blank PPP application. 

The State of Maryland has established the following business assistance programs, and these resources and more can be found on the Maryland Business Express page:

  • Maryland Small Business COVID-19 Emergency Relief Loan Fund - $75 million loan fund offers no interest or principal payments due for the first 12 months, then converts to a 36-month term loan of principal and interest payments, with an interest rate at 2% per annum. 

  • Maryland Small Business COVID-19 Emergency Relief Grant Fund - $50 million grant program offers grant amounts up to $10,000, not to exceed 3 months of demonstrated cash operating expenses for the first quarter of 2020. 

  • Maryland COVID-19 Emergency Relief Manufacturing Fund - $5 million incentive program helps Maryland manufacturers to produce personal protective equipment (PPE) that is urgently needed by hospitals and health-care workers across the country. More information coming by Friday, March 27, 2020.

  • Maryland Layoff Aversion Fund  - designed to support businesses undergoing economic stresses due to the pandemic by preventing or minimizing the duration of unemployment resulting from layoffs. The award (up to $50,000 per applicant), will be a quick deployable benefit and customizable to the specific needs of your business to minimize the need for layoffs.

Please click here to find a COVID-19 best practices guide for founders authored by Accel, Bessemer Venture Partners, Chiratae Ventures, Kalaari Capital, Lightspeed, Matrix Partners India, Nexus Venture Partners, Omidyar Network India, SAIF Partners, and Sequoia Capital India. 

 

Below you will find some articles that discuss the impact of COVID-19 on venture capital. 

  1. Wall Street Journal - Startup Funding Dwindles Due to Coronavirus Slowdown

  2. Forbes - The Face Of Angel Investing Is Changing. Here’s What You Need To Know

  3. PitchBook - COVID-19's Influence on the US VC Market

 

 

I hope you all stay safe and wish you the best of luck moving forward. 

Sincerely,

Paige Soya

Executive Director, K-Street Capital

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