March 22, 2020
Coronavirus (COVID-19): How to Respond to Distress in Your Business
Coronavirus: Bankruptcy and Restructuring Advisory
- Get Small/Go Back to Basics: Don't increase distress/risk by trying to do too much
- Get Organized
- Know Your Business – who are your employees/customers/vendors & how are they being impacted
- Know Your Numbers – be realistic
- Gather & Review Key Documents (loan agreements, insurance, leases, etc.)
- Develop a plan, but build in flexibility
- Cash is King
- Go Into Survival Mode – conserve cash & cut unnecessary expenses
- Evaluate availability under credit lines/revolving facilities
- KNOW THE FACTS!
- Communicate, Communicate, Communicate
- Ignoring the situation does not make it go away – take charge by communicating:
- Communicate with your Employees, Customers, Suppliers, Lenders, Landlords, Partners, Neighbors, Competitors, etc.
- Ignoring the situation does not make it go away – take charge by communicating:
- Learn About the Available Options
- Stay informed about additional assistance made available to certain businesses (SBA vs SBI Loan)
- SBA Loans (https://www.sba.gov/offices/district/il/Chicago)
- The Three Step Process: Disaster Loans (pdf)
- SBI Loan/Proposed CARES Act Update
- Read our Advisory on the latest policy developments.
- Communicate with your Local, State and Federal representatives:
- Find Your Elected Official (Illinois)
- Find Your Elected Official (NYC)
- State and Federal representatives need to hear the issues you and your employees are facing
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To help our clients navigate the coronavirus (COVID-19) crisis, Arnold & Porter has established a Coronavirus Task Force covering a wide range of issues and challenges. Subscribe to our "Coronavirus (COVID-19)" mailing list to receive our latest client Advisories and register for upcoming webinars.
© Arnold & Porter Kaye Scholer LLP 2020 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.
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