Coronavirus Compliance and Stimulus Support
The COVID-19 (Coronavirus) pandemic has not only wreaked havoc our daily lives and public health system. It has also brought waves of new laws and regulations that dramatically impact startups and small businesses, on both operational and economic levels.
Grellas Shah is proactively keeping abreast of all of the newly passed laws, issued regulations, and continuously updated administrative guidance regarding the coronavirus. And together with the legal expertise and practical knowledge the firm has already built from being an active part of the tech startup and small business communities for decades, Grellas Shah will be distilling the rapidly changing legal landscape with an eye towards tech startups and small businesses.
Our firm prides itself as being a voice for founders. In a time of unprecedented change and uncertainty, we want to ensure that guidance is available with an eye towards advocating for tech startups and small business.
With the COVID-19 crisis, federal, state, and local authorities have enacted legislation and issued regulations that impact the conduct of tech startups and small businesses. Our team is continuously analyzing shelter-in-place and other quarantine/social-distancing legislation and orders, to provide companies practical guidance on their legal obligations.
In addition, startups and small businesses are, sometimes for the first time, having to navigate both new an existing sick, family, and other leave programs. We provide guidance on compliance with these laws, to ensure our clients remain compliant, their workforces stay healthy, and any available government support is maximized.
The $2 trillion Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a massive stimulus program has, buried within it, programs to support small businesses (including tech startups) and help impacted employees, founders, and business owners.
While the law is in place, regulations are still forthcoming. We are interpreting the law and providing guidance for our clients, and will continue to do so as the regulatory landscape develops.
For clients interested in accessing the various SBA loans made available under the CARES Act, we provide support and assistance in applying for those loan programs.
And as new stimulus programs come into place, either via new federal legislation that is being proposed or state or local programs, we are here to make sure our tech startup and small business clients are aware of and able to maximize the benefits available.
Venture Capital Fund, Investor, and Accelerator/Incubator Guidance
VC funds, other investors, accelerators, and incubators have a vested interest in ensuring portfolio companies comply with the newly changing legal landscape and access any available government support.
For tech startups, in particular, legal compliance often takes a backseat to other business considerations – both due to time and resource constraints. When new regulatory compliance obligations stem from a major public health crisis and are the subject of constant media attention, the ability to fly under the radar becomes much more difficult. The pressure on government regulators to ensure compliance and the publicity concerns for companies that run afoul of new regulations and orders are something that neither tech startups nor small businesses (nor their investors) can afford to ignore.
And while so much attention is paid to how the CARES Act and other stimulus programs reserve billions of dollars for favored companies and industries, it is easy for busy tech startup founders to gloss over how they can maximize government benefits to stabilize their business and survive through a tough economic climate.
For VCs and other investors, ensuring your portfolio companies have the right guidance – guidance geared towards startup founders – is simply a smart way to protect your investments from becoming write-offs. Oftentimes it is you, the investor, who will need to steer your portfolio companies towards getting the guidance they need.
Grellas Shah is available to provide support to investors and their portfolio companies, on a one-on-one basis, through talks and webinars, and written guidance, on any legal ssues arising out of the COVID-19 crisis.