Food Venture Financing News - Weekly Issue No. 46
In This Issue:
- Alternatives to Paycheck Protection Program
- Watch Out for the Corporate Transparency Act
- Food Venture Financing Trends
- Links to Relevant Content and Events
Alternatives to Paycheck Protection Program
- As a reminder, the Paycheck Protection Program will remain open for first and second draw loans until March 31, 2021. If you are still considering applying, we recommend doing so as soon as possible given the SBA's delays in processing applications.
- Whether you do not qualify for the PPP or are looking for additional capital, there are alternative sources of funding available. These include:
- Economic Injury Disaster Loans: Available to businesses with less than 500 employees that can show a pandemic-related loss.
- SBA's 7(a) Loans: These include standard 7(a) loans (capped at $5 million), express loans (capped at $1 million until October 31st, after which they will be capped at $500,000), and microloans (capped at $500,000).
- Other Grants: Numerous government agencies are offering grants. One resource is grants.gov.
Watch Out for the Corporate Transparency Act
- Congress recently passed the "Corporate Transparency Act", which will require numerous companies to file certain information regarding ownership to the Treasury Department's Financial Crimes Enforcement Network ("FinCEN").
- The purpose of the Act is to eliminate anonymity of ownership of corporations and limited liability companies by requiring these companies to submit information on their beneficial owners and those who formed the companies.
- The Treasury Department still needs to adopt regulations for this program, which is expected to commence in 2022.
- There are already several types of entities that will be excluded from the Act, including public companies, tax-exempt companies, companies in highly regulated industries (e.g. banks), and companies that (i) have more than 20 employees in the U.S., (ii) have annual gross receipts of at least $5 million, and (iii) have a physical office in the U.S.
Food Venture Financing Trends
- M&A activity continues to accelerate in the food and beverage industry. Danone recently announced that it will acquire Earth Island, a leader in the plant-based dairy industry, as part of its strategy to increase plant-based sales to 5 billion euros by 2025.
- As part of its commitment to social impact investing, Mondelēz International recently launched Sustainable Futures, a platform focused on impact investing and tackling sustainability issues such as climate change.
- The U.S. Department of Agriculture noted that it plans to tackle issues such as sustainability, climate change, and equity and fairness. One strategy includes the creation of a marketplace that will ensure equal access to capital for small- and medium-sized producers.
- Nature Valley announced that it will use fully recyclable plastic wrappers for its granola bar products by spring as General Mills aims to use 100% recyclable packaging by 2025.
Links to Relevant Content and Events
- Danone Expands Presence in Plant-Based Segment With Deal to Acquire Vegenaise Maker Follow Your Heart
- Mondelēz International Launches Sustainable Futures to Advance Climate Solutions and Support Social Entrepreneurs
- USDA Commits to Improve Equity & Fairness, Sustainability & Rural Quality-of-Life, But Places Pandemic Control Above All Else
- Nature Valley Makes Recyclable Wrappers for Granola Bars
- Rule Breaker Secures Funding From Bimbo Ventures
- CA Relief Package Includes $2 Billion in Grants for Small Businesses
- Improved Communication Helps AgTech Start-ups Compete for Investments in 2021
- WSJ: Restaurant Tech Company Toast Planning an IPO
- Little Leaf Farms Raises $90 Million to Grow Its Greenhouse Network
- Gardyn Raises $10 Million for Its Consumer-Grade Indoor Farm System
- Future Acres Kicks Off $3 Million Equity Crowdfunding Campaign for Its Ag Robotics Platform
- Bonumose Secures Investment From Hershey and ASR Group
Naturally Bay Area's 2021 Quick Bites Series
Working Capital Financing for Emerging Food Brands
Wednesday, February 24, 2021 - 12:00 – 12:45 pm PT
- • Ben Brachot: Managing Partner, Dwight Funding
- • Cate Bugbee: Business Development Officer, Union Bank
- • Andrew Hollingsworth: Senior Vice President, Gerber Finance Inc.
- • Don Buder: Moderator, Naturally Bay Area & Davis Wright Tremaine, LLP
Davis Wright Tremaine Employment Webinar
Wage & Hours Traps 101: A Guide for Employers With California-Based Employees
Friday, March 5, 2021 - 12 - 1 pm PT
California's wage and hour laws are much more extensive than federal wage and hour laws and are often confusing. During this webinar, we will address questions that are particularly relevant for employers who are new to the California market or who have California-based employees but aren't as familiar with California wage and hour laws.
Hirshberg Entrepreneurship Institute Webinars
Yes We Can: Perspectives and Strategies for a Successful 2021
These webinars will provide practical perspectives and real world advice for navigating financing, cashflow, retail, distributor, and eComm challenges in the year ahead presented by seasoned experts with opportunities for you to get your questions answered by the presenters.
February 24 – Telling Your Story and Getting Trial and Discovery in the New Covid World
Speakers: Jessica Rubino, Sr. Director, Content Marketing, Informa Markets (tentative) Annalea Krebs, CEO and Founder, Social Nature
March 3 – Brands Launching in the Current Market
Speakers: Nicole Bernard Dawes, Founder & CEO, Nixie Sparkling Water Matt McLean, Co-Founder, Uncle Matt's Organic
March 10 – The Latest Consumer and Market Trends and Insights
Speakers: Carlotta Mast, Sr. Vice President and Market Leader, New Hope Network Steve French, Sr. Vice President, National Marketing Institute
March 17 – How to Successfully Pitch for $$
Speakers: Andy Whitman, Managing Partner, 2x Consumer Growth Partners Paul Richardson, Co-Founder and Managing Partner, Renewal Funds
March 24 – Navigating Costco & Thrive
Speakers: Jeremy Smith, President and Founder, Launchpad Second speaker TBD
Register at hirshberginstitute.com
NEW ACCELERATOR COHORTS
The ICA Lab and Accelerator
ICA provides the coaching and capital small businesses need to scale and get investment. Together, ICA's companies have raised over $50M in outside capital.
When you join the Lab or the Accelerator at ICA you can expect a strong support network, hands-on engagement from our ecosystem of strategic advisors, and a community of like-minded entrepreneurs. And in 2021, ICA is offering seed equity fund investments to eligible businesses that complete ICA programs. Which means that you can expect to be considered for investment, too.
Please check out DWT's newly re-launched Startup Law Blog
At DWT, we are proud to have one of the largest Food & Beverage legal practices in the country, with over 40 attorneys representing food innovators, entrepreneurs, and investors at every level of the food chain, from Farm to Label.
Please contact our Food and Beverage team if we can assist you in any way in these unprecedented times.
The facts, laws, and regulations regarding COVID-19 are developing rapidly. Since the date of publication, there may be new or additional information not referenced in this advisory. Please consult with your legal counsel for guidance.
DWT will continue to provide up-to-date insights and virtual events regarding COVID-19 concerns. Our most recent insights, as well as information about recorded and upcoming virtual events, are available at www.dwt.com/COVID-19.