The coronavirus has toppled business as we know it, and many companies are attempting to right themselves by scaling back, including seeking to be excused from contractual obligations pursuant to a “force majeure” provision in their agreements. Force majeure is one of a handful of standard “boilerplate” contract terms that is often skimmed over (at best) or overlooked by the parties, given its relative unimportance as compared to more substantive provisions. However, when faced with unexpected and/or uncontrollable circumstances, a precisely worded force majeure clause can sometimes offer a lifeline that will excuse one party’s performance obligations.

As previously shared, the SBA’s Paycheck Protection Program under the CARES Act makes available $349 billion for loans to small businesses to help prevent their collapse during the COVID-19 public health crisis. Since the launch of the Program, the SBA has released a formal application, as well as two interim rulings about the Program (see rulings one and two here). Despite these efforts, many small businesses remain confused about the Program, including the application process itself.

In an effort to provide more clarity, the government has released a set of frequently asked questions (“FAQs”) which address a variety of topics, including the following:  

Providing financial assistance to small businesses is one of the key roles played by the Small Business Administration (SBA), including the provision of emergency loans during times of crisis under its Economic Injury Disaster Loan (EIDL) program. When the Coronavirus Aid Relief and Economic Security Act (CARES Act or Act) was passed on March 27th, certain components of the EIDL program were enhanced under the Act, and an additional SBA section 7(a) lending program - the Paycheck Protection Program (PPP) – was introduced. Deciding which loan program is right for your business depends primarily on how you plan to use the proceeds of the loan.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Its key provisions include an Employee Retention Credit, which allows employers to recoup certain wages paid to employees who are not providing services due to a suspension of operations related to COVID-19, and the creation of a temporary Pandemic Unemployment Assistance Program. Both of these mechanisms provide ways for businesses to avoid layoffs by implementing temporary shutdowns or reductions in hours.

Since announcing the Paycheck Protection Program, a component of the Coronavirus Aid, Relief and Economic Security Act or CARES Act, the Small Business Administration (SBA) has released both the loan application and additional guidance for prospective borrowers. The Program makes available $349 billion for loans to small businesses to help prevent their collapse during the COVID-19 public health crisis. 

If you intend to apply for a loan under the Paycheck Protection Program (the “Program”), it is essential that you begin taking steps to do so NOW, including familiarizing yourself with the following key SBA updates:

A critical component of the government’s newly passed stimulus package, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act” or “Act”), is the new Small Business Administration (SBA) loan program called the Paycheck Protection Program (the “Program”). Created under Section 7(a) of the Small Business Act, this Program will make available $349 billion for loans to small businesses to help prevent their collapse during the COVID-19 public health crisis.

During the pending COVID-19 crisis, many employers are considering layoffs to make sure they can keep their companies afloat. However, because the duration of the crisis is unknown and may be temporary, employers may wish to consider other cost-saving measures that are designed to be temporary and reversible in the event that the economy bounces back sooner rather than later. This article will address some of the cost-cutting strategies that Massachusetts employers can use in lieu of layoffs which will ensure that employers have an available workforce to call upon once business rebounds, and also save jobs.