SBA regulations governing small businesses with affiliates will preclude some small firms from receiving this aid, including many that are supported by venture capital funding, which will put good jobs at risk.
ITIF estimates that, absent access to the Paycheck Protection Program, venture- and angel-backed firms will lay off approximately 279,000 more workers than they would otherwise.
Indirect effects would bring the total number of job losses to more than 1 million across all 50 states.
At the end of ten years, because of the additional closures of these normally high-growth firms, there will be 703,000 fewer workers in venture- and angel-backed firms.
For thhe full report: https://itif.org/publications/2020/03/31/how-sbas-affiliation-rules-venture-backed-firms-will-limit-effectiveness?mc_cid=cce7102685&mc_eid=3171ceba53