Welkin Health, a San Francisco-based healthcare software startup backed by Josh Kushner's Thrive Capital, laid off 10 employees, about one-third of its roughly 30-person workforce, on April 24, 2020, citing a sales decline due to the COVID-19 pandemic. Just three days later, the company was approved for at least $1 million in Paycheck Protection Program (PPP) loans, which are intended to help small businesses retain staff. This timing raised concerns about the program's integrity, as the layoffs reduced the company to about 20 employees, despite reporting 30 to the SBA. The move contradicted advice from its investor and may risk loan forgiveness, highlighting tensions between startup funding and federal aid meant for vulnerable small businesses.
