GTM Global’s US attorney, Tom Thorelli from THORELLI ASSOCIATES in Chicago, explains how the US Government is helping companies and individuals during this difficult time. The key benefit available is a forgivable loan under the Paycheck Protection Program.
“We hope that you, your families, and employees are all doing well and are healthy during the uncertain times caused by the COVID-19 pandemic. The US government is offering assistance to companies and individuals during this difficult time. For companies, the key benefit available is a forgivable loan under the Paycheck Protection Program.
We have also been contacted with numerous COVID-19 legal issues related to contractual obligations, breach of contract, termination of employees, etc. Many businesses will not be able to fulfil contractual obligations due to COVID-19. Some businesses will be forced to temporarily suspend operations because State law requires it. How to do so without risking the future of the business must be addressed.
What follows are some legal issues related to the impacts of the COVID-19 pandemic and some answers to frequently asked questions. This is not legal advice. Each case is unique. Please speak with your lawyer or contact us for further information. Moreover, the government is frequently issuing new laws and regulations in response to COVID-19.”
US government relief for COVID-19: File your application now in order to secure funding
Although the initial $350 billion-dollar funding has been used up, Congress has now approved additional funding of $310 billion for the PPP. We believe it is crucial to file your application immediately in order to secure funding, as funds will likely be allocated on a “first-come, first-serve” basis. What follows are a few additional facts related to the PPP.
The Paycheck Protection Program will grant loans of up to $10,000,000 at 1% interest, payable in two years, to cover eight weeks of salaries, benefits, utilities and rent. If certain easily complied with requirements are met, the loan will be forgiven (converted to a grant). Foreign-owned US companies can apply and are taking advantage of this Program, notwithstanding mechanical issues with banks. You should too. Please click here for further information, including the application. More on this, below.
Foreign-Owned US Businesses Are Eligible for The PPP Loan Program
CARES ACT – Government Assistance for US Small Businesses
Economic relief for individuals, independent contractors and small businesses has been rushed into operation. Application periods are now open for most types of financial assistance, including the following:
Families First Coronavirus Response Act (“Covid Act”) and its Paid/Unpaid Leave Benefits
Additional COVID-19 Orders and Other Relief Enacted by Individual States
Executive Orders have been issued by the governments of each individual state. Companies that maintain offices, warehouses or staff in different states can expect that different forms of assistance and relief may be available to the corporate citizens of each state. For example, in many states, the normal deadlines for annual filings, renewal of licenses and other certification programs have been extended and payment deadlines have been deferred. A comprehensive list of all COVID-19 related orders by the state can be found here. We can work with you on the implications of these new orders for your business.
COVID-19 Contractual Issues: FORCE MAJEURE – The Law of Unexpected Circumstances
National and International authorities have made formal declarations that the coronavirus is a pandemic and have created significant constraints on trade. In many cases, this will be enough to invoke the standard force majeure provision.
Our Quick Guide to Make Force Majeure Work for You
If you have further questions or concerns you would like to discuss related to Covid-19, we are happy to discuss these issues with you and provide you with guidance on legal compliance and best practices.
As mentioned above, none of what is provided herein is to be viewed as legal advice.
Finally, we hope that you are healthy, along with your family, and that your spirits remain high for the future that lies ahead.
We are in this together!
Thorelli & Associates
Watch Tom Thorelli streaming live from Chicago at our US Legal and Economic Intervention. A Video Briefing for UK Businesses.
Chaired by GTM Global’s Mark Stimpfig, we heard from Tom Thorelli, US accountant Antoine Guillaud and DIT International Trade Adviser Laurie Spicer who provide advice and guidance on key issues such as US employee management, conserving cash dollars, Force Majeure and related contractual obligations.