The Chamberlain Hrdlicka Business and International Tax Developments Blawg provides updates on business and international tax.
Chamberlain Hrdlicka Blawgs
The COVID-19 pandemic is having an unprecedented financial impact on many small and large businesses. The uncertainty surrounding how long the crisis will continue and the ultimate impact on the economy has business owners critically reviewing their operational and financial needs. For many, now may be a time to consider selling non-core assets in an effort to generate liquidity and reduce cost. The following are some general recommendations for businesses considering a sale.
I) Identify Eligible Assets
1. Consider the costs required to maintain, in the short and long-term, all ...
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act" or the "Act") was signed into law. The CARES Act, among other things, provides certain employers (generally, those with 500 or fewer employees, discussed below) an opportunity to apply for an SBA loan of up to $10 million to cover payroll costs and other operation expenses. Our previously published summary of the Paycheck Protection Program loans ("PPP Loans") under the CARES Act is accessible here.
Last week, the Small Business Administration issued guidance, Interim Final Regulations ...
The COVID-19 pandemic is having a devastating impact on businesses and the employees they support. Mass lockdowns and rapid changes in consumer and company spending are forcing businesses to scale back and implement drastic measures in an effort to survive. As businesses await clarity on how long the pandemic will last, and what local and national government will be able to do to support them, business owners can take general steps now to better position their business to handle an uncertain future.
1. Employee Concerns
Employees receive constant information about the pandemic and ...
In response to the overwhelming economic impact of the COVID-19 pandemic on the U.S. economy, on Friday, March 27, 2020, after prior approval by the U.S. Senate and House of Representatives, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act” or the “Act”) was signed into law by President Trump.
This document focuses on the portion of the Act pertaining to SBA loans, particularly to the extent relevant to small and mid-sized businesses. In the event any applicable regulatory or other guidance is issued as this pandemic evolves, we will provide an update.
Many states and cities across the United States have issued “stay at home” or “shelter in place” orders, effectively forcing all “non-essential” businesses to close physical operations and cease doing business unless their employees can work remotely. Business owners, landlords and tenants are now reviewing commercial leases, construction contracts, loan agreements, and other commercial contracts to determine whether force majeure provisions are implicated. This alert analyzes some of the potential consequences of the COVID-19 pandemic on force ...