Small Business Survival in the Pandemic Tag Archives

May 3, 2022

Small Business Debt Relief

Subchapter V for Small Business Owners

For the past two years, small businesses whose bottom lines were impacted by the onset of COVID-19 enjoyed greater protections while going through Chapter 11 bankruptcy reorganizations in the form of higher debt limits under the Small Business Reorganization Act.

That act, passed in August 2019 and enacted as of February 2020, established what came to be called “Subchapter V” of the SBRA, aimed at providing a simpler, less costly and ultimately more beneficial Chapter 11 process for small business debtors who would struggle to afford administrative and other costs.

August 28, 2021

Residential Eviction Update

by George Bellas

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COVID Rules for Residential Evictions

RESIDENTIAL EVICTION UPDATE – August 27, 2021 – SCOTUS weighs in.

Finally, some clarity to the situation by the source least expected – the U.S. Supreme Court (“SCOTUS”). It has been a tortured road for Landlords during the COVID-19 Pandemic as the story is told in this blog. Basically, SCOTUS ruled that the eviction moratorium mandated by the CDC exceeded it’s authority under the law. The justices divided along party lines, with the court’s three liberal justices dissenting from the unsigned eight-page decision. Landlords are now allowed to start evicting millions of Americans who are behind on rent because of the Pandemic.

June 16, 2021

Park Ridge Bar Loses Claims for Business Interruption Insurance Coverage

by George Bellas

Business interruption insurance & COVID

Should business interruption insurance cover losses due to the COVID-19 shutdowns, even if said insurance policy contains a virus exclusion?

A bar and restaurant based in Park Ridge and a former jewelry store in Chicago have gone to the U.S. 7th Circuit Court of Appeals to argue that their policies with West Bend Mutual Insurance Co. should cover such losses, which they say are due to the Illinois state government orders, not the virus itself. (Mashallah Inc. et al. v. West Bend Mutual Insurance Co., U.S. Seventh Circuit, 21-1507)

April 8, 2021

Smaller Restaurants Alert – New Relief Funds Available

by George Bellas

Pandemic Relief for Restaurants

Smaller restaurants and bars soon will have a new opportunity for pandemic-related relief when the U.S. Small Business Administration posts the application for the new Restaurant Revitalization Fund, a program created as part of the American Rescue Plan Act of 2021 signed by President Biden on March 11.

As of this posting, the application had not been made available; however, those eligible should keep checking this page or watching out for announcements and be ready to pounce.

January 25, 2021

Small Business Second PPP Loans & Grants

by George Bellas

Small Business Pandemic Survival Information

The $900 billion pandemic relief package included relief for Small Businesses. The updated programs are intended to make it easier for small business owners to apply and gain funds.

The Small Business Administration (“SBA”) approved $5 billion in new Paycheck Protection Program (“PPP”) loans on January 19 and expanded the network of lenders who can make the loans. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate income neighborhoods. More info is available on the SBA Website here.

January 4, 2021

Preparing for 2021

by George Bellas

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How to Prepare for 2021

Wow, 2020 was a year to forget! I hesitate to say it was interesting because it was not. It was more like a nightmare as we coped with a public health crisis, an economic crisis, a political crisis, and a civil rights crisis. Let’s put 2020 in a lead box and drop it in the deepest part of the ocean!

Unfortunately, the pandemic has forced a number of businesses to close. Some businesses have actually thrived and others have adapted and are working diligently to succeed. Mostly, it has altered how businesses operate and tested our resilience. Some people have learned that working remotely is a viable alternative, while others have found themselves struggling to survive in a world which places demands on the use of technology to survive.

December 6, 2020

CoronaVirus Pandemic FAQs for Business and Property Owners

by George Bellas

Updated December 7

The Chicago area and Illinois business owners are facing a number of challenges and the CoronaVirus pandemic is threatening the continued viability of their business. Here are some of the more frequently questions asked by business owners.

Residential Evictions can proceed under certain conditions

November 3, 2020

Employers Need to Mask Up Against Lawsuits

by George Bellas

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Employers Need to Mask Up Against Lawsuits

Small businesses face a dizzying swirl of regulations from different levels of government about whether patrons and employees are required to wear masks during the pandemic, as well as whether employers are required to either purchase masks for employees or reimburse them for reasonable costs.

The scenario becomes more fraught given the emergence of class-action litigation even when businesses are complying with the mandates and guidelines from the federal, state and local authorities. Going forward, small businesses need to strike a delicate balance between accommodating customers in their public spaces while doing right by their employees, whose priorities are not always the same but should be considered.

September 8, 2020

Trump’s Payroll Tax Deferment: Don’t Take the Bait

by George Bellas

The Dangers of Payroll Tax Deferment

As part of a series of executive actions rolled out in early August, President Trump ordered Treasury Secretary Steven Mnuchin to allow the deferral of the 6.2% payroll tax on employees from Sept. 1 through Dec. 31 for workers making less than about $104,000 on an annualized basis. The plan was brought forth by the White House after it became clear that Congress did not plan to play ball with the President and pass an actual payroll tax cut.

After a hard look at the plan, it is obvious that small business owners should not be tempted by President Trump’s offer to defer paying some employee payroll taxes until next year. Established through a non-binding Presidential Memorandum, this offer does *not* constitute a tax cut.

September 3, 2020

Pandemic Survival Tips for Small Business Owners

by George Bellas

The Key to Surviving as a Small Business

How can your business – and you – survive the COVID-19 pandemic?

It’s a tall order. But small business owners have means of surviving. The corollary shutdowns have impacted 20% of small businesses, according to the U.S. Chamber of Commerce, and restrictions have affected a far greater number. A study by the University of Illinois, University of Chicago and Harvard University and its business school estimates more than 100,000 small businesses are permanently shuttered. Not a surprise since many small firms don’t generally have more than a few months’ cash reserve.