Author: Alex Ross


Newly Issued Interim Rules Update Paycheck Protection Program Loan Eligibility Considerations


Late Friday evening, the Small Business Administration (SBA) issued an Interim Final Rule on affiliation, which was posted to the U.S. Treasury Department’s Paycheck Protection Program (PPP) loan website. This interim final rule (SBA Interim Final Rule 2) supplements an earlier SBA Interim Final Rule (SBA-2020-0015), which specifically did not address affiliation. The new PPP affiliation rules in SBA Interim Final Rule 2 clarify which SBA affiliation rules apply to the PPP.

Delaware Considers New Statutory Public Benefit Limited Liability Company


In April 2018, the Delaware State Bar Association’s Corporate Law Section approved an amendment to the Delaware Limited Liability Company Act that allows for the formation of public benefit limited liability companies (PBLLCs). The proposed new PBLLC statute – Subchapter XII of Chapter 18, Title 6 of the Delaware Code (PDF) – closely tracks the Delaware public benefit corporation (PBC) statute, so its material features will be familiar to most social entrepreneurs and impact investors.

What Does a “Down Round” Mean?


When a startup raises a new round of capital at a lower price per share as a prior round, it is referred to as a “down round.” In this video, MoFo partner Tim Harris details why this might occur and explains the antidilution adjustments needed for previous investors.