Coronavirus (COVID-19): How to Respond to Distress in Your Business

• 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.

• 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.