Welcome to Axis ProRata, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics.

I'm Dan Pramack. On today's show, Zoom slows down and a random act of kindness. But first, the small businesses that got left out.

As you certainly know by now, President Trump last Friday signed the CARES Act, a bipartisan multi-trillion

dollar stimulus plan. One piece of it is about $350 billion of loans to small businesses. It's

something called the Paycheck Protection Program or PPP. The basic idea is that any business

with fewer than 500 employees is eligible, plus some non-profits, tribal groups, and veteran groups.

Each loan is for up to $10 million, and it's calculated pretty simply.

You take your company's monthly payroll costs, multiply it by two and a half times, up to $10 million.

And if you have employees making over $100,000 a year, you only get to include that first $100,000.

The loans can even be forgivable. In other words, you don't have to pay them back so long as they are used on approved expenses,

like payroll.

But there are a few thousand glaring exceptions.

Any of the small businesses owned by private equity or many of the startups that have raised

money from venture capitalists.

But there are a few thousand glaring exceptions.

Any of the small businesses owned by private equity funds or the startups that have raised money

from venture capitalists. Well, at least the ones not involved in hospitality and travel. Those

got carved out. Now, the reason for this exception is something called the affiliation rule,

which is an old small business administration rule.

It's complicated, but here's a good example. Imagine your company has 100 employees. In general,

you should be able to get a PPP loan, but you're owned by a private equity fund that also owns

dozens of businesses, each with 100 employees. Because of the affiliation rule, your company's

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