ACG in the NEWS


Updated April 29, 2020

14 years in 14 days: Inside the chaotic rollout of the SBA’s PPP loan plan to save America’s small businesses (subscription)

FORTUNE, Anne Sraders, (April 29, 2020) | Nick Gitsis has been working hard to see his small family restaurant through the coronavirus crisis. Located in what he describes as a “sleepy town” in Warsaw, N.Y., Gitsis’s business, Silverlake Family Restaurant, has been getting creative to keep the money coming in and to retain its 25 employees. “We have a drive-thru window for takeout, but we’re even selling some bread and cheese and milk and cucumbers to make it easy for the people who don’t want to get exposed in the grocery stores,” he tells Fortune

Businesses Owned by Private Equity Are Left Out of Bailout Loans Again

Barron's, Luisa Beltran (Updated April 23, 2020) | A second round of relief funding is on the way for small businesses, but don’t expect loans to go to many companies controlled by private equity.

No major relief expected for portfolio companies

Pensions & Investments, Hazel Bradford and Arleen Jacobius, (April 20, 2020) | Help from the federal government during the growing economic crisis is not expected to do much for the portfolio companies of private equity and venture capital firms, which are already starting to decide which ones might survive.

Fed’s Coronavirus Stimulus Offers Taxpayer Cash to Buyout Firm Companies

Wall Street Journal, Chris Cumming (April 16, 2020) |  Private-equity firms won a victory in getting access to stimulus funds intended to blunt the economic pain of the coronavirus, after missing out on their first effort to secure government cash for their businesses.

California lawmakers back small business aid to private equity-backed companies

Center for Responsive Politics, Ilma Hasan (April 16, 2020) | Small businesses and startups with fewer than 500 employees but controlled by large parent companies including private-equity firms are not currently eligible to get loans under the program. House Speaker Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.) — hailing from California and catering to Silicon Valley constituents — want to change the rules to extend support to them. 

Private equity-owned physician practices locked out of CARES Act loans

Becker's Hospital CFO Report, Ayla Ellison, (April 16, 2020) | Private equity firms and many of their portfolio companies, including physician practices and other provider organizations, are unable to access the small business Paycheck Protection Program authorized under the $2 trillion Coronavirus Aid, Relief, and Economic Security Act.

Middle-Market Public Policy Roundup

Middle Market Growth, Benjamin Glick (April 16, 2020) | The Association for Corporate Growth urged congressional leaders to waive restrictions preventing private equity-backed middle-market businesses from obtaining emergency loans under the Small Business Administration’s Paycheck Protection Program. In a letter sent to House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Mitch McConnell, R-Ky., on April 9, ACG advised the lawmakers to amend the SBA’s affiliation rules, which prevent small and midsize businesses with private equity backing from being awarded loans from the agency.

Buyout barons deserve state help too – at a price

Reuters, Liam Proud (April 15, 2020) | Pandemics evoke a certain Old Testament vibe, which makes it tempting to mete out biblical justice when crafting a response. Yet excluding unsympathetic industries like private equity from state aid packages only hurts workers. Better to lend a hand, with strict conditions attached.

Private Equity Managers Face Confusing Federal Aid Puzzle

FundFire, Tom Stabile (April 15, 2020) Private equity fund managers struggling in recent weeks to adjust to a Covid-19-shuttered global economy are now realizing that many of their portfolio companies may not qualify for – or in some cases may steer clear of – new federal aid programs responding to the pandemic.

Fund managers maneuver to get federal aid on payrolls

Roll Call, Jim Saska (April 14, 2020) Private equity- and venture capital-backed small businesses have had a tough time accessing a massive new aid program enacted last month to help them through the COVID-19 pandemic, given regulators’ concerns that the firms’ overall portfolio of companies might be anything but small.

Private Equity Pushes for Access to Cares Act Small-Business Loans

Barron's, Luisa Beltran (April 14, 2020) |  The $2 trillion Cares Act is meant to help small businesses. But one segment of this group can’t access $350 billion in loans that are meant to help them ride out the Covid-19 recession.

PPP Loans: Do Private Equity And Venture Capital Backed Companies Qualify?

Forbes, Jason B. Freeman (April 10, 2020) | The Coronavirus Aid, Relief and Economic Security Act—better known as the “CARES Act”—is the largest economic relief bill in U.S. history.  It represents a $2 trillion relief package designed to stabilize the U.S. economy.  Its flagship offering?  The “Paycheck Protection Program” (“PPP”), a loan initiative designed to provide funds to small businesses as they ride out the COVID-19 storm.  And a critical sector of the economy is asking one very important question: Do venture capital (“VC”)- and private equity (“PE”)-backed companies qualify for PPP loans?  

ACG Calls on Officials to Expand Safeguards to Include Venture Backed, PE Owned Lower-Middle Market Firms

ABL Advisor (April 10, 2020) | Survey results published today by the Association for Corporate Growth (ACG), a worldwide network of 90,000 middle-market professionals, show a devastating impact if Congress votes to again exclude lower middle-market companies, majority-owned by venture capital, private equity, or other private capital providers, from the 7(a) loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Private Equity Sees Help in Fed’s New Coronavirus Stimulus

Wall Street Journal, Chris Cumming (April 9, 2020) | Private-equity firms expect to have access to the Federal Reserve’s new $2.3 trillion lending program, a relief for an industry that feared being shut out of stimulus spending designed to offset economic damage from the coronavirus pandemic.

The CARES Act Affiliation Rule Will Exclude Too Many Small Businesses: Legal Experts

Value Walk, Jacob Wolinsky (April 3, 2020) | Many lower/middle market companies with private backing may be precluded from applying for financial assistance through the Coronavirus Aid, Relief, and Economic Security AKA CARES Act, given the current Small Business Administration (SBA) “affiliation rules.” The application of the SBA’s current rules would force many smaller companies to aggregate their employees with those of other unrelated companies because they have common equity investors, resulting in these companies surpassing the 500-employee threshold, ultimately being left out of receiving financial assistance.

Nonprofit names intercollegiate competition winners

Grand Rapids Business Journal, Rachel Watson (April 3, 2020) | The local chapter of a national nonprofit association named the winners of an annual business competition. The Association for Corporate Growth Western Michigan (ACG Western Michigan) last week announced the undergraduate and graduate-level winners of its 12th annual ACG Cup Competition.

Despite Contraction, PE-backed Companies Could Weather Credit Strain

Middle Market Growth, Benjamin Glick (March 26, 2020) | The coronavirus outbreak struck the economy hard and fast. The pandemic’s economic impact is expected to be widespread and will put significant strain on credit markets, but private equity-backed companies are in a strong position to weather a potential lending crunch.

ACG Global cancels InterGrowth 2020, due to CDC event guidance on the coronavirus

Mergers & Acquisitions, Mary Kathleen Flynn (March 16, 2020) | ACG Global has canceled InterGrowth 2020, the middle market's largest event of the year, due to event guidance issued by the Centers for Disease Control and Prevention. Here is the letter from CEO Tom Bohn in its entirety.

ACG Names Veterinary Executive as New Leader

ABL Advisor (October 1, 2020) | The North American Veterinary Community (NAVC) announced CEO Thomas M. Bohn, CAE, MBA, has accepted a new opportunity to lead the Association for Corporate Growth® and will resign from the NAVC at the end of 2019. Eugene O'Neill, NAVC Deputy CEO and Chief Financial Officer has been appointed by the Board as interim CEO. 

Association for Corporate Growth announces new board members

Phoenix Business Journal, Serena O'Sullivan (Sep 19, 2019) | The global Association for Corporate Growth has added new members to the international group's board of directors who will serve through 2020.