Tech association ITI said tech startups should not be precluded from the Paycheck Protection Program COVID-19 aid Congress is handing out just because they are funded by larger entities.
That came in a blog post by Shannon Taylor, ITI VP of government affairs.
Taylor said the affiliate rules need to be clarified.
"Startups are small businesses, and they often receive critical seed money or equity investment from larger firms," Taylor wrote. "As a result of the affiliation rules, the headcount of these small businesses is bloated by the headcount of the larger firms, disqualifying them from eligibility for the PPP."
She said that while venture capital is crucial, it is not an "endless spigot."
Taylor argued they face the same existential threat from the virus as other small businesses.
Individual TV stations, radio stations and newspapers have also asked that the affiliation rules not exclude thousands of them just because they are part of a larger media group.
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