Some interesting links we found across the web this week:
COVID-19: Accessing Payroll Tax Credits Provided by Coronavirus Legislation
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, and Families First Coronavirus Response Act, or FFCRA, provide refundable payroll tax credits to eligible employers for certain types of wages paid out during the COVID-19 pandemic. This WilmerHale alert not only discusses relevant IRS guidance on the CARES Act and FFCRA, but also highlights certain ways that employers can convert these tax credits into cash.
Thoughts for VC Backed Companies Considering SBA/PPP Loans
The landscape around Paycheck Protection Program loans, or PPP loans, is still uncertain and fast-moving. PPP loans may seem attractive to a business because they have broad qualification requirements and may be forgiven under certain circumstances, but company leaders should pause and carefully weigh the benefits, drawbacks, and implications of taking out PPP loans before applying. This article from Feld, which includes a memorandum from an early-stage investor to the CEOs in his portfolio, explores the considerations and consequences which leaders of venture-backed companies should contemplate before applying for PPP loans.
Founders Rally to Squeeze Startup Support Out of EU
Startups all over the world are facing economic uncertainty due to the COVID-19 pandemic, but relief for European startups has been inconsistent across national boundaries. Several groups representing European startups are calling for the European Commission to implement comprehensive, pan-European relief to help startups now and after the pandemic ends. This article by Sifted not only summarizes some of the actions individual European countries have taken so far to help startups, but also notes the efforts of those leading the charge for EU-wide relief and what such relief might entail.
5 Common Startup Setbacks and How to Rebound Stronger
Any business can face unexpected shocks and must be able to adapt accordingly. These shocks may affect companies worldwide like the current COVID-19 pandemic, but even events affecting a single company like losing a key employee or an important client can significantly disrupt a startup. This AlleyWatch article explores five potential unanticipated problems startups may encounter and suggests how entrepreneurs can brainstorm a backup plan to survive these unforeseen shocks.
Preparing Your Business for a Post-Pandemic World
Business and startup leaders should be thinking about how their companies will be positioned when the COVID-19 pandemic ends. Laying the groundwork and having these discussions now will help a company recover in the pandemic’s immediate aftermath and facilitate adaptation to the new normal that may occur after the dust settles. This HBR article provides a framework of five strategic questions with which business leaders can use to create a post-pandemic action plan.