In light of the coronavirus (COVID-19) outbreak and governmental response pertaining to social gathering restrictions, business closures, travel bans and a general economic downturn, we are working with financial institutions and business owners to help them address the challenges in such diverse business sectors, including construction, distribution, franchises, healthcare, lodging, hospitality, manufacturing, real estate, restaurants, retail, service providers, technology and transportation.
We are fielding and advising on a wide range of situations and challenges from a lender’s and a borrower’s perspective, including:
- What type of loan is available under the CARES Act Paycheck Protection Program?
- What efforts can be taken to continue business operations and address liquidity and cash-flow issues?
- What proactive steps can be taken to right-size a business?
- Would a loan restructuring, amendment, or forbearance be the appropriate course of action?
- Does the current situation affect the collateral or security interests or the parties’ obligations under the credit facility documents?
- Is a financial restructuring option available under the auspices of Chapter 11 of the Bankruptcy Code?
- Does a borrower as a vendor or trade creditor, have rights regarding delivery of goods “in-transit” or other collection issues?
- How proactive should discussions between the lender and the borrower be?
- Which businesses have a notice obligation under the federal Worker Adjustment and Retraining Notification (WARN) Act to provide advance notice prior to a plant closing or mass layoff resulting from unforeseeable business circumstances?
Alerts and Publications:
- SBA Releases Paycheck Protection Program Loan Forgiveness Application and Instructions (May 16, 2020)
- The Department of Banking and Insurance Orders Insurers to Refund Premiums for New Jersey Policyholders Affected by COVID-19 (May 13, 2020)
- Additional Paycheck Protection Program Funding Approved by Congress, Awaiting President’s Signature (April 23, 2020)
- Additional Paycheck Protection Program Funding Imminent (April 22, 2020)
- Paycheck Protection Program Reporting Best Practices (April 17, 2020)
- CARES Act Modifies the Bankruptcy Code to Provide Enhanced Debt Relief to Small Businesses (March 31, 2020)
- CARES Act Establishes the SBA’s Paycheck Protection Loan Program—A Lifeline for COVID-19 Impacted Businesses (March 30, 2020)
- NJEDA Announces Initiatives to Aid Small and Medium Sized Businesses in the Wake of the Coronavirus (March 27, 2020)