The COVID-19 pandemic has already had a huge impact on everyone’s daily lives, and is expected to continue to do so. We here at Sullivan Hill are experiencing many of the same things as our families, clients, friends, and neighbors, and we see how it is affecting those around us.
If you or anyone you know has experienced a business stoppage or shutdown, and are unsure whether it is a temporary or a permanent situation, we here at Sullivan Hill are knowledgeable and capable of advising and possibly even assisting you in managing the fallout from this type of event. If you qualify as a “small business,” you could be entitled to a small business interruption grant or an Economic Injury Disaster loan, on specific terms, including: a loan of up to $2 million, an interest rate of 3.75%, repayment term of up to 30 years.
In addition, starting April 3 you can apply for a Small Business Paycheck Protection Program, open to small business, independent contractors and the self-employed. (For a list of terms and participating lenders can be found at www.sba.gov.) The purpose of this program is to assist small businesses with funds to pay up to 8 weeks of payroll costs, including benefits, interest on mortgage, rent and utilities. It is available to small businesses with 500 or few employees. The amount of the loan can be up to 2 months of average monthly payroll plus 25%, not to exceed $10 million, and payroll costs are capped at $100,000 per employee.
If these new programs are not sufficient to help you get through these challenging times, we can discuss with you other tools that are available to help you manage your business affairs. For instance, you should be aware that a new provision to the Bankruptcy Code (which became effective on February 19, 2020), entitled the “Small Business Reorganization Act of 2019,” opens up possibilities for certain small businesses to file for bankruptcy protection and reorganize, as long as its total amount of debts does not exceed $7.5 million. This option may be helpful to companies desiring to weather the COVID-19 storm, and who hope to come out as operating businesses after the crisis. This option, sometimes referred to as “SubChapter V,” is more streamlined than the rules for Chapter 11 reorganization cases.
We are available to help and provide assistance if needed, and look forward to consulting with you. Best regards and stay safe. For more information, feel free to contact Jim Hill at firstname.lastname@example.org; Gary Rudolph at email@example.com; Kathleen Cashman-Kramer at firstname.lastname@example.org; Christopher Hawkins at email@example.com; and in our Las Vegas, Nevada office, Elizabeth Stephens at firstname.lastname@example.org.
Sullivan Hill’s Insolvency and Commercial Bankruptcy practice group is well-known both locally and nationally for its extensive experience in the representation of creditors, debtors, trustees, creditors’ committees and receivers.
About Sullivan Hill:
Sullivan Hill has provided efficient, aggressive, and responsive legal representation for more than 50 years. The firm provides full service representation to clients in a variety of industries with an emphasis in insolvency, construction disputes, insurance coverage, real estate, business disputes, civil litigation, and transactional work. The firm has offices in San Diego and Las Vegas.