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Coronavirus (COVID 19) Resources For Business Leaders

June 5, 2020 PPPFA Amends PPP.

Amendment extends time to use PPP from 8 weeks to 24 weeks, reduces amount that must be used for payroll from 75% to 60% and makes other changes . . . Learn More

Paycheck Protection Program - PPP

A Paycheck Protection Program (“PPP”) loan is designed for small businesses with less than 500 employees, sole proprietorship, independent contractors and self employed people (and some non-profit organizations).  The loan will be for 2.5 times your average payroll.  To the extent that the PPP loan proceeds are used for payroll, employee benefits (such as Health Insurance), rent and other allowed expenses . . . .  Learn More

EIDL - LOAN

Businesses that have been in existence at least one year and suffered a loss as a result of COVID 19 may also aply for a  Economic Injury Disaster Loan ("EIDL"). The EIDL, can be a loan of up to $2,000,000 with interest at 3.75% to be paid over 30 years . . .  Learn More

EIDL - GRANT
The first $10,000 of funding to each business under the EIDL program  be a grant, that does not need to be repaid.  The grant process is designed to be processed very quickly  . . .  Learn More

State of Connecticut Emergency Bridge Loans

The State of Connecticut is making $50 million  (originally $25 million) available for a short-term emergency small business loan program.   Businesses with under 100 employees that were profitable before  . . .  Read More.

Bankruptcy Law Changes

The  Coronavirus Aid Relief and Economic Security ("CARES") Act became law Friday March 27, 2020. The CARES Act makes temporary changes to the United States Bankruptcy Code.  Subchapter V of Chapter 11 (for Small Businesses  . . .  Read More.

As of Friday (04/03/20), the Coronavirus Aid, Relief and Economic Security (CARES) Act that  is providing funding for businesses, did not address debtor-in-possession ("DIP") lending to  businesses operating in Chapter 11 of the United States Bankruptcy Code. 

We are hoping to see this need addressed in future legislation.

At this time companies that may need to seek protection from creditors under Chapter 11 of the United States Bankruptcy Code, should be considering how to preserve working capital and/or how to raise  DIP funding.

Student Loan Relief  (estimated to impacting 95% of student loans). The Coronavirus Aid, Relief and Economic Security ("CARES") Act also requires the Secretary of Education to defer Student loan payments of principal and interest through September 30, 2020 without . . . Read More.

Direct Payments  to Individuals under The Coronavirus Aid, Relief and Economic Security ("CARES")

The Coronavirus Aid, Relief and Economic Security ("CARES") Act became law on March 27, 2020.   Pursuant to the CARES Act individuals with a gross income under $75,000 ($112,500 for head of household and $150,000 for joint filers) are eligible  . .  Read More.

Contract and Debt Restructuring

The best solution for each business will depend upon its unique circumstances.  Before entering into any new loan or contract modification, we urge business owners to consult with attorneys who are experienced with cashflow interruption responses, workouts, and business restructurings under Chapter 11.     Just today, the United States Bankruptcy Court for the District of Connecticut adopted a temporary rule that waives the requirement for original signatures for the filing a bankruptcy petition.  For some businesses, Chapter 11 may be a very good choice.

Corporate Governance

Social distancing protocols recommended for health and safety, pose real challenges for corporate governance.    Pursuant to Executive Order 7I, virtual shareholder meetings are authorized on a temporary basis.  

The federal and state governments are reacting with rapidly changing, executive orders, laws and regulations.    We are  updating this page as new information becomes available.    If You Have Any Questions - Please Call Us.

For up-to-date guidance on what you should do to keep yourself and others safe we urge you to review the current COVID-19 guidance from the  State of Connecticut , the CDC,   and from the World Health Organization.

Stay safe!

Read more about our Connecticut Business lawyers.

Read more about our our Connecticut Insolvency and Business Restructuring Lawyers.