We Are Monitoring The Proposed  $2 Tn Stimulus Package  – We expect to Update This Page Within 24 Hours.    If You Have Any Questions – Please Call Us.

During these trying times, our first priority is for the welfare of our attorneys, staff, clients, and their families and friends.   We also understand that for owners of small businesses and those tasked with making business leadership decisions, additional concerns include the survival of your business and the welfare of your employees and customers.

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.

Other than those who are over 102 years of age, none of us have lived through a global pandemic and there is much we do not know.    However, our attorneys have been helping businesses adjust and restructure for survival and success since 1986.   We know this is stressful for many.  There are legal strategies that can help you minimize financial risk and maximize opportunities.   We know many business leaders have questions.  We have over 30 years of experience helping businesses  navigate financial turbulence to survive a cash-flow storm and prosper after it passed.    We are here, ready to put that experience to work, should you need help.

Here are a couple things that we are watching for our clients this week:

Disaster Loan Assistance Programs

We have been monitoring the developments in disaster loan assistance.   For some businesses, one or more of the financial assistance options may be a very good choice.

For example, a SBA Disaster Loan may allow a small business to borrow up to $2,000,000 to help meet financial obligations and operating expenses caused by COVID-19.   These loans may be structured to be repaid over 30 years and with an interest rate not to exceed 4 percent.    However, the SBA may require evidence that credit cannot be obtained elsewhere, and may require personal guarantees from each proprietor,  general partner, limited partner or shareholder  that owns 20% or more of voting stock.

There has been discussion of another funding option with loans that would be forgivable in the future, if certain criteria are met.

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.

We are watching all of this closely.   We know you have questions.

We are here for you.

COVID-19 Update
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