VC-backed biotechs may be excluded from coronavirus loan program

Venture-backed companies may be shut out of an emergency forgivable loan program for small businesses created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act unless the Trump administration takes urgent action to modify eligibility rules.

Trade associations and venture firms are lobbying the administration and Congress to ensure that VC-backed companies are eligible for Paycheck Protection Program (PPP) loans. The loans, for up to $10 million, have a 0.5% interest rate and will be forgiven if recipients maintain employee and compensation levels. They can be used to cover payroll costs, mortgage interest, rent or utility costs over the eight-week period after the loan is made...