1. Short title
This Act may be cited as the “Caring for Startup Employees Act of 2020”.
Caring for Startup Employees Act of 2020
A BILL
To amend the Small Business Act to include certain small business concerns in the paycheck protection program, and for other purposes.
2. Ensuring startups can access the Paycheck Protection Program
Section 7(a)(36)(D)(iv) of the Small Business Act (15 U.S.C. 636(a)(36)(D)(iv)) is amended—
by adding at the end the following:
“(IV) any small business concern that has accepted funding from an investment company, as such term is defined in section 80a–3 of title 15, Code of Federal Regulations (or any successor regulation), notwithstanding any assessment of such investment company, as long as—
“(aa) no investment company is a majority stakeholder of the small business concern; and
“(bb) the small business concern does not distribute proceeds of the loan to any investment company of such small business concern, including through dividends, redemptions, security repurchases, or any other transfer or transaction.”
in subclause (II), by striking “; and” and inserting a semicolon; and
in subclause (III), by striking the period at the end and inserting “; and”.