Venture startups may not qualify for stimulus' small business loans - Business Insider

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The $2 trillion stimulus law could leave startups out in the cold. Here's why Silicon Valley is worried.

Venture startups and their workers may be left out of one of the new stimulus law's most generous provisions.While the new coronavirus-spurred stimulus law offers help to all kinds of companies, startups may be barred from tapping into one of its more generous provisions.

But they may get tripped up on rules that look not just their own workforces but those of affiliated companies, which may include other startups with the same venture backers.The $2 trillion stimulus package President Trump just signed has provisions designed to help businesses ranging from sole proprietorships to giant corporations weather the coronavirus crisis.

The financial assistance would be especially welcome by some startups which lack the cash flow and reserves of larger, established tech companies. Several startups in Silicon Valley have begun laying off staff in recent weeks.

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SAI Oh no! What are we ever going to do without Silicon Valley's hyperinflated startups! I need my connected 5G toaster oven pronto!

SAI Silicon Valley has had it pretty damn good for plenty of time.

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