CARES Act Q & A with Congressman Ro Khanna

Many people have questions about the new stimulus bill and we’re here to help provide some answers.

We understand that the new stimulus bill can be confusing and are here to help businesses find the best way forward through this crisis.  We are grateful to California Congressman Ro Khanna for connecting with us to answer questions regarding the CARES Act.

Click to watch Q&A sessions with Congressman Khanna:

In addition to those sessions, we have created an online forum to be moderated by Congressman Khanna.   Please click below to ask your questions.


Considering SBA’s affiliation rules, what are other options available for startups?

For startups not qualifying for support under the CARES Act, there are two other options which are:

  • Treasury department’s mid-sized business loan and
  • Federal reserve’s lending facility
Will the startups that have either furloughed employees or laid them off still qualify?

Startups that have furloughed or laid off employees can qualify by re-hiring them since the CARES Act states “Businesses must maintain the same number of employees (equivalents) from February 15, 2020 through June 30,2020 as it did during either the same period in 2019, or from January 1, 2020 until February 15, 2020.

Can payments to consultants and independent contractors be included in payroll costs for the SBA loan program?

The purpose of the SBA loan program is to help as many startups retain and continue to pay their employees as possible. So, payment to consultants and independent contractors can be included in the payroll costs for the SBA loan.

Will qualifying and taking the SBA loans prevent startups to get investment from venture capitalists in future?

There is not condition in the SBA loan program limiting the future  fundraising capability of startups. So, qualifying and taking the SBA loan program will not prevent (potential) future investments from startups.

Do stealth startups qualify for the SBA loan programs considering they have only a few employees?

Stealth startups can qualify if they’ve a few employees. However, startups with no employees (other than the founder) will not be eligible. In such cases, the founder will be eligible for unemployment insurance benefits.

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