| Responding to Closure-Related Business Losses External Assistance Governments at the local, state and federal levels are working through plans to assist businesses impacted by covid-19 losses. Few segments of the economy remain unaffected. Although many details of assistance plans are still being developed, we have worked on loss claims after other disasters, including Deepwater Horizon and various named storms. Our experience suggests that any claims process will require businesses seeking assistance to provide documentation of losses that can be tied directly to covid-19 shutdowns. Philadelphia has established a small business relief fund under the auspices of the Philadelphia Industrial Development Corporation. At this time, our best advice is to keep your records current. Use any downtime to access and organize past years’ records for comparison. When the time comes to prepare and submit your claim, Asterion will be ready if you need assistance. Proactive Strategies You may find yourself in the role of both debtor and creditor in the weeks and months ahead. Maintaining positive relations will be important on either side of a transaction. Here’s a partial list of tools you may need to deploy: rent abatements, tax deferrals, bridge loans, loan workouts, terminating a deal. You may need to assert defenses for breaches that cannot be avoided, utilize creative mitigation tactics, and possibly seek bankruptcy protections. Finally, here is some Health Department guidance if one of your employees tests positive or suspects they’ve contracted covid-19, and an early look at the Families First Coronavirus Response Act which takes effect on April 2, 2020. Asterion’s experts have worked through previous cyclical downturns with many businesses, and we’re prepared to help your business now. Support for workers While job losses and layoffs related to business shutdowns are already occurring, look to the future. Beyond unemployment and any cash that may come from the federal government, other assistance is available. Bank of America has represented that it will pause mortgage payments. Federal student loans payments will be suspended. HUD, Freddie Mac and Fannie Mae are halting foreclosures. Many utilities have issued a moratorium on shut offs. Offer guidance when you can. Your employees will be integral to the recovery of your business. Creative Responses in Challenging Times There’s nothing wrong with the exercise of enlightened self-interest during a crisis. For example, luxury goods manufacturer LVMH is shifting some of its European factories from making fragrances to producing hand sanitizer. US distilleries are doing the same. Fashion designers from New York and Europe are now making masks for health care workers. Necessity as the mother of invention is a cliché because it’s true. One Italian hospital saved lives by using 3D printing to create the ventilator valves it needed. One can only assume the IP issues will be sorted out later. The experts at Asterion are available to consult with you regarding the obstacles your business may face in the days ahead. FYI Johns Hopkins offers reliable coronavirus information and resources. Multiple media sources have dropped their paywalls during the pandemic, and some internet providers are offering free broadband access for 60 days or lifting data caps. On the Lighter Side NASA gets Mars rover unstuck with a self-administered hit with a shovel. Cambodia’s renowned Kampot Pepper survived the Khmer Rouge and is thriving again. Even in a panic, there are some foods no one will buy. The Thread Recommends: Mental Distancing as the antidote to Social Distancing. Our homes have become offices, universities, schools, and day-care centers. Here are some links to help you cope. Get free trials of streaming services. Learn to draw. Illustrators offer free daily drawing lessons online; plus Mo Willems (Don’t Let the Pigeon Drive the Bus) is here to entertain the kids at lunchtime. Take virtual tours of historic sites and museums around the world. Learn something courtesy of the Smithsonian’s list of digital education resources, or use the free resources available for academic researchers and students available at JSTOR. Create. Invent. Shakespeare wrote some of his best works during a plague, and Isaac Newton developed the theory of gravity while working from home during the Great Plague of London. Spotlight on Healthcare Compliance Services Asterion, Inc. has extensive experience providing professional services for organizations involved in healthcare and the life sciences. |
March 24, 2020