The Economic Aid Act, passed on December 27th, 2020, expanded the Paycheck Protection Program created by the CARES Act. The Economic Aid Act authorized $284 billion in new funds for first draw and second draw funds of PPP. The Small Business Administration (SBA) and U.S. Treasury have issued new guidance on how the changes will …
Voting Structures for Businesses
All corporations and cooperatives have some sort of democratic model for decision making. There are two major voting structures for all businesses. The first: “one share, one vote;” means that an investor gets one vote for each share of a company they own. The second: “one member, one vote;” means that each cooperative member or …
Colorado adds New Law to Ratify Defective Corporate Actions
In March, Governor Polis signed a bill that codifies procedures for ratifying defective corporate actions into Colorado Law. Ratification statutes allow boards of directors to affirm corporate actions that were defective in some way. This type of statute has become a trend in state-level corporate law and brings Colorado in step with Delaware and many …
Capital Basics: Five Categories of Financing
The Jason Wiener, p.c. blog has a significant and growing section on raising capital for a business. This post will go back to the basics and briefly describe the five categories of financing: debt, equity, convertible debt, grants, and rewards-based fundraising. Most types of fundraising fall within one or more of these areas. Debt: Debt …
Use of the term “Cooperative”
Edited June 26th, 2020: An earlier version of this blog post implied that only organizations incorporated as cooperatives under Massachusetts law may use the word “cooperative.” This post has been edited to accurately reflect that other businesses may use the term if they distribute earnings consistent with cooperative law. Entity formation is often the first …
Black Lives Matter. Period.
Credit – LA Johnson/NPR Black Lives Matter and we stand in solidarity with the Movement for Black Lives. Period. We stand with those taking to the streets to voice the collective pain from and intolerance of, as well as demand reform of police tactics that direct violence at Black people, Indigenous people, and People of …
COVID-19: Useful Resources
Last updated: June 4, 2020 General Information and Business Support National Assistance Small Business Association Disaster Assistance Loans: Application (applicable if your area has been declared eligible for disaster loan assistance) SBA Express Bridge Loan Program Small Business Association Local Assistance Directory Small Business Association Funding and Lender Match programs Federal Disaster Unemployment Assistance CDC Interim Guidance for Businesses and Employers Tax deferral for individual and non-corporate tax …
SEC Adopts Temporary Rules to Loosen Crowdfunding Regulation in Light of COVID-19
In recognition of the particular effect of COVID-19 on small businesses, the SEC issued temporary rules earlier this month to allow small businesses greater access to interstate crowdfunding. The federal requirements for crowdfunding, called Regulation Crowdfunding or Regulation CF, had slow approval processes and arduous requirements which made it difficult for small businesses to access …
COVID-19: News and Resources Main Page
We know this is a highly unsettled and uncertain time. We are all grasping for clarity and comfort as we self-quarantine and check in (virtually) on loved ones and colleagues. Know that our remote-first team is fully operational and here to support our clients in whatever way we can. We will be regularly compiling relevant …
COVID-19: Paycheck Protection Program Loan Forgiveness
Last updated: October 14, 2020. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act addresses economic impacts of, and otherwise responds to, the COVID-19 outbreak. The rescue plan includes the Payroll Protection Program (PPP), a loan program for small businesses to keep workers paid and employed. Read more about the program itself here. In this …
