Small rocket start-ups disqualified by SBA for Wuhan flu relief loans
Capitalism in space: Because of its arcane rules for defining what makes a small company, the Small Business Administration (SBA) has disqualified hundreds of small rocket start-ups from relief loans being issued to help companies whose business has been suspended due to the government-imposed shut downs due to Wuhan flu.
[Space industry groups] claim that hundreds of U.S. startups have been disqualified from loan programs — created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program — because of the way the SBA defines “small business.”
Many startups are funded by venture capital firms that typically invest in a portfolio of companies. To be eligible for the SBA loan program a business has to have fewer than 500 employees. When defining a small business, the SBA applies an “affiliation rule,” requiring companies to include in their worker count all the employees of companies with which they are “affiliated.” That rule requires venture-backed startups to aggregate the employees of all the unrelated companies in which their investors have equity positions, pushing many beyond the 500-employee threshold.
According to the industry groups, 98 percent of U.S. startups have fewer than 100 employees.
In other words, the SBA counts the employees of the venture capital firms as part of the company, when all they are essentially are investors. The start-up itself generally has far less than 100 people employed.
What really has to happen is to shut down the government shut downs. The government has got to get out of the way, and allow freedom to function again. Sadly, I do not see that ever happening, which means that many of these companies will fail, not because they couldn’t get it done but because our fascist new government rulers killed them.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
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Capitalism in space: Because of its arcane rules for defining what makes a small company, the Small Business Administration (SBA) has disqualified hundreds of small rocket start-ups from relief loans being issued to help companies whose business has been suspended due to the government-imposed shut downs due to Wuhan flu.
[Space industry groups] claim that hundreds of U.S. startups have been disqualified from loan programs — created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program — because of the way the SBA defines “small business.”
Many startups are funded by venture capital firms that typically invest in a portfolio of companies. To be eligible for the SBA loan program a business has to have fewer than 500 employees. When defining a small business, the SBA applies an “affiliation rule,” requiring companies to include in their worker count all the employees of companies with which they are “affiliated.” That rule requires venture-backed startups to aggregate the employees of all the unrelated companies in which their investors have equity positions, pushing many beyond the 500-employee threshold.
According to the industry groups, 98 percent of U.S. startups have fewer than 100 employees.
In other words, the SBA counts the employees of the venture capital firms as part of the company, when all they are essentially are investors. The start-up itself generally has far less than 100 people employed.
What really has to happen is to shut down the government shut downs. The government has got to get out of the way, and allow freedom to function again. Sadly, I do not see that ever happening, which means that many of these companies will fail, not because they couldn’t get it done but because our fascist new government rulers killed them.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Robert wrote: “What really has to happen is to shut down the government shut downs. The government has got to get out of the way, and allow freedom to function again.”
Beyond the question of freedom, a nation cannot bail-out its way to prosperity. Prosperity only comes from productivity, not the redistribution of what little wealth is generated by the few who are productive. Redistribution of wealth implies poverty that a country cannot solve by getting the impoverished to be productive.
These companies are part of that productivity and future prosperity.