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.
With tech M&A activity continuing to increase, more UK-based startups are exploring the possibility of a US exit. This chart details the differences sellers may encounter when seeking a US exit. View the chart.
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.
Intellectual property issues can be critical at the time a startup is considering a sale. In this video, partner Tim Harris explains several reasons why an acquirer will scrutinize a startup’s intellectual property before moving forward with a purchase.
Investor due diligence into a startup’s foundational intellectual property and make or break a potential investment. In this video, partner Tim Harris describes IP-related pitfalls that discourage investors from backing a startup.
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.
A startup’s stock option plan is likely its greatest employee benefit, but also a dangerous source of potential finance, tax, and accounting problems. In this video, MoFo partner Tim Harris describes several key issues to consider when administering stock option plans to employees.