From coast to coast, businesses of all sizes are struggling to adapt as the COVID-19 outbreak escalates and cash flow slows, or halts completely. While Congress has been passing emergency bills to aid businesses through this time, trying to keep up with changing rules, regulations, and relief options has left both business owners’ and lenders’ heads spinning.
In COVID-19: Considerations for Business Owners & Lenders, experienced attorneys from Hinshaw & Culbertson LLP will review what you need to keep in mind right now to help business owners and lenders confront the host of challenges caused by COVID-19.
In the short term, business owners are concerned about paying their bills and taking care of staff. Long term, owners are worried about whether their businesses will survive the economic crisis and whether they’ll be able to recover.
Gain tools to help owners navigate short term disruptions and plan for long-term consequences. Explore owners’ options when cash flow has stopped, including coverage under business interruption insurance policy clauses. Review how the CARES Act expands the availability of the Small Business Reorganization Act (SBRA).
With businesses’ cash flow abruptly halted, borrowers are missing payments — and will probably continue to for the foreseeable future. Discuss how lenders should respond to missed payments. Explore whether the negative ramifications of COVID-19 amount to an “act of God” under contract law. Understand the scope and provisions of new program loans.
Taxes and employee benefits
Reductions in force, furloughs, and/or reducing hours and compensation of employees can all significantly impact employee benefit plans and policies. Examine how the IRS is relieving burdens on taxpayers. Review how COVID-19 is affecting retirement and health plans.
No one has a crystal ball, but COVID-19: Considerations for Business Owners & Lenders will highlight the latest changes and key issues, so you can provide clients with informed insights during an uncertain time.