Path emerges for VC-backed biotechs to access paycheck protection loans

Lawyers have identified workarounds that allow venture-backed biotechs to comply with Small Business Administration affiliation rules to access an emergency forgivable loan program for small businesses created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CARES Act created Paycheck Protection Program (PPP) loans that are available 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...