The Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) was recently passed to provide economic relief to small businesses that have been negatively impacted by COVID-19. Due to the number of businesses that applied for aid, funding for the CARES Act was quickly depleted. On April 24, 2020, President Trump signed into law an amendment to the CARES Act providing additional funding for the Paycheck Protection Program (PPP) and Emergency Economic Injury Disaster (EIDL) grants and loans. The amendment increased the appropriation level for PPP by $321.335 billion (which includes an additional $310 billion for PPP loans, and $11.335 billion for administrative fees) and authorized an additional $10 billion for emergency EIDL grants and $50 billion for EIDL loans. As before, both the PPP and EIDL funds are available on a first-come, first serve-basis. Consequently, eligible businesses that are interested in benefiting from these programs are encouraged to apply as soon as possible, as funds from this second round are also expected to be exhausted quickly.

To assist you in your application process, we have prepared a brief overview of the eligibility requirements, terms and application procedures for the PPP and EIDL loan programs. If you have any additional questions please visit the Husch Blackwell CARES Act Frequently Asked Questions page or contact a member of the Cortex Team.


Continue Reading Additional Funding Now Available for Paycheck Protection Program and Economic Injury Disaster Loans

At Husch Blackwell we understand the financial hardships our startup clients are facing in the midst of the COVID-19 pandemic. We know you are facing challenges in your business and would like to recommend that you take a moment to review the questions below as you plan the next steps your startup should take.

Is Your Business is Essential?

As states issue shelter at home orders, businesses deemed non-essential are closing. While guidance varies by state, there are often exemptions for specific essential businesses or those industries supporting essential businesses. If you qualify, you may need to take some steps to confirm your company may remain operational under an exemption and get your workers the proper paperwork to explain why they are out on the streets. You can find the latest guidance for your state at Husch Blackwell’s COVID-19 State-by-State Guidance Resource Center. One of our attorneys can help you to determine and draft any additional documentation needed to support that you are running an essential business.

Is Your Business Eligible for the CARES Act SBA Loan Program?

The COVID-19 pandemic has prompted the U.S. government to respond with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest economic stimulus plan in history.
Continue Reading 4 Questions for Startups Following COVID-19 Business Disruptions

For startups, social media can offer cheap and effective publicity. Startups must also be mindful that any advertising, including on social media, will require you to comply with federal regulations. While sponsored content regulations once went largely unenforced against social media based advertising, times are changing. Advertising on social media is increasingly drawing the eye of regulators. Federal Trade Commission (FTC) regulations demand honesty and transparency in advertising, and fortunately, honesty and transparency will keep your company compliant.

In 2016, the FTC sued retailer Lord & Taylor alleging the company paid online influencers to post pictures of themselves wearing a specific Lord & Taylor article of clothing. The posts failed to disclose Lord & Taylor provided the clothing for free and paid each influencer thousands of dollars.  Lord & Taylor also paid for a positive review in the online publication Nylon that appeared without notice it was a paid promotion. The product sold out quickly, but the FTC sued Lord & Taylor. The case ultimately settled, and the settlement will affect Lord & Taylor for up to twenty years.  Lord & Taylor did not make the posts that got them into trouble; they only failed to require the influencers to disclose their relationship with Lord & Taylor. Your company is responsible for others’ posts if you pay for the posts—tracking paid posts to ensure regulatory compliance is obligatory.
Continue Reading Watch Out for the FTC with your #SponCon

Most startups initially focus on incorporation, funding, and protecting their intellectual property, which is logical and practical! While these are all important and necessary, startups should also ensure that they are protecting their new startup from legal actions such as a lawsuit – the dreaded “L” word. A lawsuit is the official court process in which two or more parties seek to resolve a dispute. A legal battle can be lengthy, expensive, and create bad publicity. Startups are experiencing a rise in litigation and below we will focus on three growing risks to startups and provide practical steps to prevent these types of lawsuits.

Being threatened with a lawsuit is always frightening and unsettling but sometimes can be avoided. For example, in a sole proprietorship, both the company and owner could be liable for the damages. Structuring a startup as a corporation or a limited liability company could help reduce owner liability. Generally speaking, the creditors of a business also cannot succeed against the founders and other investors of corporations and LLCs for unpaid debts because they are sheltered by the corporate status.
Continue Reading An Ounce of Prevention is Worth a Pound of Cure: Why Startups Should Consider Litigation Risk

The answer is “Yes” if your start-up has progressed far enough along to have hired six (6) employees. The Missouri Human Rights Act (“MHRA”) makes it illegal to discriminate in any aspect of employment, including tangible employment actions, because of an individual’s race, color, religion, national origin, ancestry, sex, disability or age (between the ages of 40 through 69).  Under the MHRA, an employer is “a person engaged in an industry affecting commerce who has six or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.”  This means as your startup succeeds in growing, you must be aware of the 6-employee rule and the impact on your business if you violate the MHRA. 
Continue Reading Is My Startup Subject to the “Me Too” Movement in Missouri?

Husch Blackwell’s Aleks Rushing has been named to the St. Louis Business Journal’s 2019 30 Under 30 class. The annual award series honors “future leaders of the region and the local business community.” Aleks serves as legal counsel for colleges, universities and schools. On behalf of her clients, she conducts investigations, handles litigation and

Jake Brown Husch Blackwell Meghan Brennan Husch BlackwellWorking with startups recently inspired two Husch Blackwell attorneys to develop an innovation solution of their own. In 2018, Husch Blackwell hosted its first firmwide Legal Innovation Challenge. Approximately 20 teams submitted ideas and went through a rigorous selection process.

Associates Meghan Brennan and Jake Brown work with a variety of clients, including startups. When they came together for Husch Blackwell’s Legal Innovation Challenge, they found a mutual interest in streamlining the initial intake process for startup clients. Together they envisioned a diagnostic tool to assess the legal needs of growing companies. Clients can complete a quick 10-minute questionnaire that will help the attorney develop a road map for company growth and future legal needs.
Continue Reading Startups Drive Firm Innovation

Fresh off the heels enacting the California Consumer Privacy Act, California Governor, Jerry Brown, signed the country’s first law governing the security of Internet of Things or connected devices. The bill, SB 327, is entitled “Security of Connected Devices.”

Beginning on January 1, 2020, all manufacturers of connected devices will be required to equip the device with reasonable security features to protect against the unauthorized access, destruction, use, modification or disclosure of information that is collected or transmitted by the device.
Continue Reading California Steps into the Fray to Regulate the Security of Connected Devices