PLANNING FOR UNCERTAINTIES AHEAD
On February 17, 2020, the CARES Act extended advantageous bankruptcy protection provisions of the Small Business Reorganization Act (SBRA) to many small businesses. SBRA added a new Subchapter V to the traditional Chapter 11 reorganization provisions of the Bankruptcy Code, designed specifically for qualified small businesses to reorganize and retain ownership of their companies.
In January of 2021, the U.S. Small Business Administration (SBA) resumed and expanded its Paycheck Protection Program (PPP) as part of the Consolidated Appropriations Act (CAA). This opens up new funds to businesses that meet certain criteria to keep workers working as the economic impacts of the pandemic persist.
How Businesses Can Survive, Thrive, and Adapt in the Face of Change. What do we do now? The sudden shutdowns in early 2020 forced many businesses to answer this question with sprints to virtual business models, attempts to secure emergency funding, and in some cases, pivots to new lines of business.