Survive + Thrive Together

We’re all in this together.  These last few weeks have been overwhelming.  COVID-19 has already had a tremendous impact on public health globally, but the extent of the resulting consequences of this severe trauma to the domestic economy is yet to be seen.  The mammoth $2 Trillion CARES Act — the Coronavirus Aid, Relief, and Economic Security Act - just passed and the complications of trickling down the $367 Billion set aside in small business loans through the SBA and other financial institutions have just begun.  The CARES Act provides federally guaranteed loans available at community banks to small businesses that pledge not to lay off their workers. The loans would be available during an emergency period ending June 30, and would be forgiven if the employer continued to pay workers for the duration of the crisis.  As with any complex piece of legislation, this one will create winners and losers.  Roughly 3,283,000 million Americans filed for unemployment benefits between March 15 and 21, representing the largest week-over-week increase on record, dramatically ending a decade-long job expansion.  

Wherever your business sits in the supply chain, you may be feeling the squeeze: perhaps not receiving or unable to fill orders leading to non-payment and exposing you to the knock-on effects of defaulting on invoices or maybe even losing staff.  Such sudden liquidity crunches on small businesses are hard for everyone. Whether COVID-19 has impacted your business operations, cashflow, employees, transactions, lease, property or contracts, we are here to help.  

Personally, these times of compounding stress and consequential unknowns brings me back to the origins of As Your Counsel.  The concept for AYC was born out of the 2008 economic crisis and resulting financial recovery.  We performed over 200 hours of pro-bono legal work assisting clients in foreclosure to research the issues and write governmental white papers during the subprime housing crisis.  Through this process we established a reputation as experts in foreclosure defense and helped guide judges in issuing rulings requiring lenders to negotiate in good faith (NY Civil Practice Laws and Rules Section 3408 CVP2f).  Our work culminated in several fraudulent mortgage rulings and consulting the government for policy changes to avoid history repeating itself.  Well, this is different, but we are here again.  This is why I focus my practice on advocacy. 

We are actively working on Crisis Management and Navigation Packages that would include options for business legal audits as well as guidance on the many Federal and local financial relief resources.  We are including links to some of those initial resources below:

• The U.S. Small Business Administration has approved both Oregon and Washington governors' requests for a disaster declaration, unlocking low-interest disaster loans for small businesses in those states. Congress recently approved up to $7 billion in SBA disaster loans for businesses impacted by COVID-19. The US Small Business Administration is providing low-interest Federal Disaster Loans to Businesses of all sizes, Private Nonprofits, Homeowners, and Renters; the maximum interest rate is 3.75% and is expected to be 2.75% for nonprofits.  While there is authorization to lend up to $2 million per approved business, the actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries.

  • Retroactive to March 1, 2020, and run through June 30, 2021; 100% of 6 weeks of payroll, capped at $1,540/week per employee ($80k/yr salary employee); Employers would have to sustain compensation for all employees for eight weeks from when the loan is disbursed.

• The SBA also provides bridge loans and other financial resources.

• Many private banks are offering small business lifeline loans.

• Spreadsheet of various Emergency Relief Resources for PDX (and beyond).

• The Business Oregon state agency’s website is an effective guide for Oregon businesses looking for assistance.

• Oregon Association of Minority Entrepreneurs provides Access to Capital. 

• Oregon COVID-19 related layoffs, closures and unemployment insurance benefits.

• PDX Area Rent and Mortgage Strike Petition.

• Full CARES Act.

• All You Wanted To Know About Those Tax Stimulus Checks But Were Afraid To Ask.

• How to make a face mask to donate. 

• PDX Area COVID-19 Offer Support Volunteer Form.

• CDC Guidance. 

• WHO Updates.

SB 3565 (the “Small Business and Consumer Debt Collection Emergency Relief Act of 2020”) was introduced on 3/22/20 by Senator Brown (D-Ohio) and seeks to amend the Fair Debt Collection Practices Act (“FDCPA”) to provide for restrictions on debt collection from consumers and small businesses during a national disaster or other emergency.  There have been signs that landlords and commercial lenders are working with tenants and borrowers on good faith.  While each contract varies, many include force majeure, impossibility or compliance with law provisions that expressly release the parties from its obligations.  

Locally, Oregon’s Governor issued Executive Order 20-12 on 3/23/20, effectively enforcing a stay-at-home order, however, she went short of closing all businesses.  The OLCC has worked with its industries to create temporary rules to keep operations going, while currently prioritizing safety during this pandemic. The 90-day Moratorium on Evictions involves eventual consequences that should be fully understood. 

These are challenging times but with the impact affecting all of us, it is incumbent on everyone to cooperate and find a commercially viable path through the disruption.  We want to assure you and all our clients that during these challenging times AS YOUR COUNSEL remains fully operational.  We are reachable in a variety of ways and will continue to closely monitor, as well as provide information on federal and local resources.  You are not alone. We are here for you. You have somebody to talk to.  We are all in this together.  #coronaVirus 😷 #surviveAndThrive

#AYCPDX #asYourCounsel #advocacy #counseling #strategy #law #business #consulting #startup #smallBusiness #realEstate #commercialTransactions #generalCounsel #communityDevelopment #portland #oregon #nyc #newYork #newJersey #legal #legalServices #lawyer #licensed #attorney #minorityOwned #diversity #personalized #custom #beSpoke