212. Crisis Coverage w/ Samir Kaji - Relief $ for Startups via CARES Act, EIDL, PPP; & How an Extended Downturn Affects Emerging VC Funds

Samir Kaji of First Republic joins Nick on a special Crisis Coverage installment to discuss Relief $ for Startups via CARES Act, EIDL, PPP; & How an Extended Downturn Affects Emerging VC Funds. In this episode, we cover: Startups... The CARES Act became law on 3/27, but many are having trouble making sense of it and how it applies... Let's start out w/ the two types of loans that are available to small businesses... First off, can you explain the difference between the Economic Injury Disaster Loan Program (EIDL) and the Paycheck Protection Program (PPP)? EIDL - No forgiveness potential and and requires personal guarantee? PPP - Forgiveness potential and no personal guarantee? Affiliation...  Dan Primack was writing about how the 500 employee rule and how much of Private Equity portfolio companies will be excluded b/c of how the language is written.  Can you explain the "affiliation issue?" How can this be enforced/checked... so many obscure LLCs used for investment in companies... hard to verify. April 3rd - Is this the date that PPP applications are available? What advice do you have for startups right now, to be prepared and get to the front of the queue? How will seed stage be impacted? Some of the best companies (Uber, AirBnB) first took institutional capital after the 2008 crisis; is now the time to be aggressively investing? VCs... How are the existing funds w/ committed capital adjusting? Will we see a lot of attrition / VC firms shutting down? What are the impacts on firms that are actively raising? Advice for those planning to raise a fund in the next year? What do VCs and LPs need to hammer out before moving forward in this environment? (projections/protocol for capital calls, projections for investments, communication plans, etc.) LPs... What are you hearing from institutional LPs? How about the family offices? Is it still in a crisis/panic mode or have some allocators put together a solid investment plan going forward? If you had to estimate, what % of capital commitments will default and/or be adjusted down? Final thoughts and advice for startups and investors? To listen more, please visit http://fullratchet.net/podcast-episodes/ for all of our other episodes. Also, follow us on twitter @TheFullRatchet for updates and more information.