In the wake of COVID-19, two (2) critical methods of relief are being offered to business owners across the country. The first is the Economic Injury Disaster Loan (“EIDL”) which is administrated by the Small Business Administration (“SBA”). The EIDL is a low-interest, non-forgivable loan available to a wide variety of business owners with key...
An Overview of the Coronavirus Aid, Relief, and Economic Securities Act (“CARES Act”) for Small Business Owners
Deferment is no longer required for non-disaster SBA loans. Instead, the CARES Act will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will pay all loan payments on or after March 27, 2020 on these SBA loans, including principal, interest, and fees, for six...
We recently sent out information to inform borrowers about potential deferment options available depending on loan type. Recently, clients have encountered lenders refusing to entertain deferment instead insisting borrowers take out an SBA Disaster Assistance Loan (“DALs”) to pay their mortgage or seek potential financing under the proposed legislation currently known as the CARES Act....
During this time of crisis, the legislature is passing significant legislation in order to aid the economy along with employers and employees. One of the major acts passed is the Families First Coronavirus Response Act. There are two provisions of the Act the Emergency Family Leave Expansion Act and the Emergency Paid Sick Leave Act...
Mar242020
3/30/20 UPDATED Steps to Obtain SBA Disaster Relief Loan Businesses are facing unprecedented hardships due to the impact of the novel coronavirus (“Covid-19”). Our office has been working closely with our clients (business owners, landlords, tenants, lenders, borrowers, etc.) to provide guidance during this time. Although every situation is unique, one issue that is consistent...
Mar232020
If you are a business owner worried about how, or if, you can make your next loan payment, you are certainly not alone. With the COVID-19 outbreak, these are tumultuous times and like you, there are countless business owners facing the challenge of how to prioritize business expenses when cash flow is drying up. For...
Our firm is often engaged by real estate investors and entrepreneurs seeking to raise capital for their projects or companies. A company may raise capital as either debt or equity. To raise capital as equity, a Company must undertake an offering of Securities. The definition of Securities in the Securities Act of 1933 (the “Securities...