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Food Venture Financing News - Weekly Issue No. 34

11.10.20
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In This Issue:

SBA Ordered to Disclose All PPP Loan Recipients

  • A federal judge ordered the SBA to disclosure the names, addresses, and loan amounts for all PPP recipients.
  • The SBA previously released this information for loans above $150,000, but only released summarized and anonymized data for loans under $150,000.
  • Given that there were about 4.5 million PPP loans under $150,000 (around 86% of all PPP loans), it is unclear how this information will be released.

SBA Releases New Questionnaire for PPP Loans Above $2M

  • The SBA released a new questionnaire for PPP recipients above $2 million to evaluate the borrower's "necessity" certification.
  • There are two forms: one for For-Profit Borrowers and the other for Non-Profit Borrowers.
  • The forms are due within 10 business days after receipt from the lender.
  • As a reminder, Treasury Secretary Mnuchin announced in April that all PPP loans above $2 million will be audited.
  • M&A activity continues to increase during Q4 of 2020 as large F&B companies make significant acquisitions in traditional and foodtech sectors.
  • Food and beverage companies are focusing on ways to increase gender and racial diversity at a managerial level. PepsiCo recently announced its goal to increase Black representation and Hispanic representation in management positions by 30% and 10% by 2025, respectively, as well as to increase gender parity in management at a global level.
  • Plant-based proteins, natural ingredients, and sustainable foodtech solutions will be the focus of foodtech companies for the next year.
  • Consumers are expected to continue to purchase food products that are suitable for home cooking through next year as remote work will likely continue into 2021.

Corporate Venture and Private Equity Funds

Our featured CPG private equity firm this week is Encore Consumer Capital.

  • Encore Consumer Capital has raised multiple funds since its formation in 2005.
  • Encore targets investment opportunities that offer natural, organic, sustainable and other environmentally aware products.
  • Portfolio companies include:
    • 4505 Meats
    • Ancient Harvest
    • Cece's Veggie Co.
    • Full Sail Brewing
    • Navitas Organics
    • KYLA Hard Kombucha
    • Lion Brewery

ARTICLES

EVENTS

Naturally Bay Area QUICK BITES Lunchtime Series

Insights for Digital Growth in the New Normal

Wednesday, November 18, 2020, 12:00 - 1:00 pm P.T.

  • Jessica Malach: VP Partnerships & Insights at Social Nature
  • Christie Lee: Founder of Nourishing Food Marketing
  • Jennifer Berliner: Moderator, Naturally Bay Area & Head of Go To Market, Planet FWD

Register here

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.

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