Skip to content

Legal Blog

Saturday Side Hustle: COVID-19 and America’s Small Businesses

In view of what is happening globally and locally in response to the coronavirus, I thought it would be a good idea this week to share something topical in that regard.

A hearing, The Impact of Coronavirus on America’s Small Businesses, was held on Tuesday of this week by the House Committee on Small Business. I share with you here a highlight from a letter presented by the ranking member of the U.S. Chamber of Commerce on the subject and hope you will find this information valuable if you haven’t seen it already.

As you may know, Congressional action took place last week in the form of the passage of the Coronavirus Preparedness and Response Supplemental Appropriations Act. According to the Chamber, the law authorizes the Small Business Administration (SBA) to provide up to $7 billion in low-interest loans to small businesses impacted by the virus. Upon reading the source, it seems the figure is much, much lower when it comes to sustaining businesses that have suffered mere economic losses (as opposed to significant health problems, which is the primary focus of the law) but the SBA definitely has some subsidy funding discretion.

The question then becomes: Which businesses qualify for subsidies and what do they need to do to take advantage of this offering?

First, contact your state government representatives. The distributions will be made in response to letters from state governors. States may obtain Economic Injury Disaster Loan declarations in this way. Once a declaration is made, information on the application process will be made to affected communities. The loans exist to overcome temporary losses of revenue, so be prepared to demonstrate you have a loss if you intend to apply. Also, these loans are offered to businesses with no other credit facilities at their disposal, so you have access to a line you need to look there first. Interest rates are 3.75% for small businesses without credit, 2.75% for non-profits.

More information can be obtained from the SBA disaster assistance customer service center at 1-800-659-2955. E-mail requests may be directed to disastercustomerservice@sba.gov.

There seems to be an additional fiscal stimulus package in the works that may be ready for activation if needed. A payroll tax cut is a major focus, along with response funding and subsidies for paid leave where it is needed. Whether these measures will be requested by the Executive remains to be seen.

In the meantime, I wish you all the best in terms of dealing with the issues caused by the coronavirus and hope you stay healthy and continue to forge ahead.

 

For more information on this topic, please contact Scott Lloyd at slloyd@offitkurman.com.

 

ABOUT SCOTT LLOYD

slloyd@offitkurman.com | 301.575.0357

Scott Lloyd is a registered patent attorney who specializes in intellectual property counseling and commercialization work. He has served as a technology commercialization specialist and advisor to companies in a diverse array of markets, including biotechnology, pharmaceuticals, medical devices, food and beverage, specialty chemicals, technology, and engineering. In addition, Mr. Lloyd spent ten years as in-house general counsel to small and mid-sized companies, where he managed corporate matters and resolved commercial disputes in addition to intellectual property strategy, and now serves in the same capacity for entrepreneurial clients. He serves as counsel to small and mid-sized business owners seeking to implement growth strategies and succession plans.

While in house, Mr. Lloyd has also contributed to the successful formation of international affiliates of domestic businesses as well as a $400,000,000 business acquisition.

 

 

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing full-service law firms in the United States. With 14 offices in seven states, and the District of Columbia, and growing by 50% in two years through expansions in New York City and Charlotte, North Carolina, Offit Kurman is well-positioned to meet the legal needs of dynamic businesses and the individuals who own and operate them. For over 30 years, we’ve represented privately held companies and families of wealth throughout their business life cycles.

Whatever and wherever your industry, Offit Kurman is the better way to protect your business, preserve your family’s wealth, and resolve your most challenging legal conflicts. At Offit Kurman, we distinguish ourselves by the quality and breadth of our legal services—as well as our unique operational structure, which encourages a culture of collaboration and entrepreneurialism. The same approach that makes our firm attractive to legal practitioners also gives clients access to experienced counsel in every area of the law.

Find out why Offit Kurman is The Better Way to protect your business, your assets and your family by connecting via our BlogFacebookTwitterInstagramYouTube, and LinkedIn pages. You can also sign up to receive LawMatters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.

DELAWARE | MARYLAND | NEW JERSEY | NEW YORK | NORTH CAROLINA | PENNSYLVANIA | VIRGINIA | WASHINGTON, DC

Skip to content