US Venture Funds Deny Receiving State Support For Small Businesses
Venture Fund Andreessen Horowitz denies receiving a US government loan intended for small business companies affected by the coronavirus pandemic, reports The Information. The company was listed in a report by the state small business Association (SBA), which guarantees loans under the Paycheck Protection Program (PPP). The statement States that Andreessen Horowitz received a loan of between $350,000 and $1 million. The Fund did not apply for a loan and did not receive it, The Information quotes representative Andreessen Horowitz.
Index Ventures and Foundation Capital are among the other venture capital companies listed in the SBA's PPP loan report ‒ they also deny receiving government support funds. Among the large companies listed as having received a loan for small businesses, The Information names p. F. Chang's and TGI Fridays catering networks, Forbes Media, the Washington Times, and Lessin Media, as well as startups that received external funding from venture companies ‒ Knotel, Getaround, and ZocDoc.
PPP loans are issued to American companies that have been affected by the spread of the coronavirus or have ceased operations because of it. They are issued at a rate of 1%. The paycheck Protection Program loan debt can not be refunded if the money was used within 24 weeks, and 60% of the amount was sent to the salary Fund.