Is a Traditional Funded Search Fund eligible for PPP under CARES Act?

searcher profile

April 08, 2020

by a searcher in San Francisco, CA, USA

I cannot find any relevant details and any pointers would be helpful.

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Reply by an investor
from University of Nebraska in Austin, TX, USA
Many traditional search funds will run into affiliation issues due to control mechanisms at the board level (much like VC backed companies. See here: https://www.venable.com/insights/publications/2020/04/the-cares-act-afflicted-by-affiliation. If investor has control many companies, they have to roll up their affiliates and if that number is greater than 500 employees you have a problem with PPP. Talk to your accountant and largest investors (they are most likely to trigger)
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