Articles Tagged with grants

AdobeStock_332772649-300x200In response to the COVID-19 pandemic, the U.S. Small Business Administration (“SBA”) has agreed to disburse Emergency Economic Injury Grants of up to $10,000 to companies experiencing financial struggles.  Small business owners that apply for an Economic Injury Disaster Loan are eligible to receive the grants, which do not need to be repaid.

The SBA’s Economic Injury Disaster Loan provides small businesses with working capital loans of up to $2 million that provide crucial economic support to businesses dealing with loss of revenue due to COVID-19.

Companies that apply for an Economic Injury Disaster Loan will be provided immediate economic relief by the $10,000 economic injury grant.  Sole proprietors, landlords, vendors and self-employed contractors are all considered small businesses eligible to apply for the disaster loan.

AdobeStock_258960515-300x200In recent years, it has become more and more common for technology and other startups to attract and compensate their employees through grants of stock and stock options.  In Silicon Valley, stock options have become an expected element of compensation.  For startups competing with more established companies for talent, stock and stock option grants have become an effectively mandatory element of compensation.

The ubiquity of stock options masks their underlying legal complexity.  Employers need to ensure that their equity compensation programs comply with applicable law, including federal and state securities laws, or risk substantial fines and other penalties.  For example, Credit Karma was fined $160,000 by the SEC for failure to comply with the federal securities laws.

Federal and State Securities Laws

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