By: Gwendolyn Jaramillo, Partner at Foley Hoag LLP and Anna Annino, Associate at Foley Hoag LLP

Editor’s Note – ACA extends a huge thank you to ACA Gold Partner, Foley Hoag LLP for creating this timely article to educate the angel community on the recent changes related to the expansion of the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS).  Thank you for your work on behalf of angels and the startup ecosystem!

On February 13, 2020, the final regulations went into effect which implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). The new rules will have a significant impact on the angel investing community, especially for investments in certain industries as described further below. 

By: Pat Gouhin, Chief Executive Officer

The Paycheck Protection Program under the recently passed CARES Act provides forgivable loans for businesses with less than 500 employees, but included a huge hurdle for many startups, the Small Business Administration’s (SBA) “Affiliation Rules”. 

By: Pat Gouhin, Chief Executive Officer

As part of America’s startup community, ACA was among many organizations that responded this weekend to address an issue of concern regarding a needed clarification that otherwise excludes small businesses with equity investors from the 7(a) loan program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  

By: Pat Gouhin, Chief Executive Officer

The U.S. House of Representative has just passed the historic $2.2 trillion dollar COVID-19 emergency relief bill, the Coronavirus Aid, Relief, and Economic Security (CARES) Act to speed recovery across the U.S. economy.  These funds will be distributed to individuals, businesses and states in response to the coronavirus pandemic under H.R. 748. 

By: Pat Gouhin, Chief Executive Officer

As the devastation of COVID-19 continues to leave small businesses and non-profit organizations in its wake, Senator Marco Rubio, Senator Collins, and the Rubio-Collins Small Business Recovery Plan task force have been working around the clock to develop a non-partisan package to protect organizations.  The goal of the bill is to empower current infrastructure at the Small Business Administration for the Keeping Workers Paid and Employed Act.  Senators Rubio and Collins are calling for banks and credit unions to scale up their processes to meet the extraordinary needs we are currently facing. 

By: Greg Mesack, Partner at GrayRobinson

The Angel Capital Association (ACA) is constantly advocating on behalf of its members in Washington, DC.  While ACA’s members are supporting startups and entrepreneurs, your association is working to ensure that the government does not create roadblocks to your mission. 

By: Pat Gouhin, Chief Executive Officer

In late 2019, the Securities and Exchange Commission proposed amendments to the existing “Accredited Investor” definition to increase access to investment opportunities.  The additions include new categories to the definition that would allow for someone to qualify as an accredited investor based on professional certifications and designations, or other credentials issued by an accredited education institution.  The SEC is not proposing changing the thresholds for an accredited investor and those are expected to stay as is.  A 60-day public comment period was provided in which the Angel Capital Association submitted a response letter for further clarification and expansion of sections of the proposed updates. 

By Marianne Hudson, Executive Director Emeritus

The Securities and Exchange Commission issued a concept paper seeking comments on “harmonizing” securities offering exemptions a few months ago.  These exemptions, like Regulation D, which investors rely on for more than half of all private offerings, set the rules for how securities can be bought and sold without extensive registrations. This SEC paper provided a truly unprecedented opportunity for organizations like ACA to suggest improvements to regulations that impact angels and the startup companies we support. 

By: Pat Gouhin, Chief Executive Officer

I just returned from another trip to Washington, DC where I teamed up with our tax coalition partners; National Venture Capital Association (NVCA) , Biotechnology Innovation Organization (BIO) and Advanced Medical Technology Association (AdvaMed).  We conducted a series of congressional visits with key representatives from the tax writing Senate Committee on Finance and House Committee on Ways and Means. We also met with the Assistant to the President for Financial Policy on the National Economic Council.  This coalition, started by ACA over four years ago by Public Policy Chairman David Verrill, brings a consistent voice to US tax policy that impacts investors and entrepreneurs. It is managed by ACA’s consultants at GrayRobinson.

By: Pat Gouhin, Chief Executive Officer

As part of the staff leadership transition, Marianne Hudson and I recently joined forces in Washington, DC with Chris McCannell and Greg Mesack of GrayRobinson, ACA’s government affairs consultants.  Chris and Greg orchestrated a series of visits with legislators on both sides of the aisle, senior agency executives and other key partners in pursuit of ACA’s 2019 Public Policy Plan.  Meeting objectives included introductions to key allies, as well as re-emphasizing plan priorities which included: