Tennessee Business Relief Program
The Tennessee Business Relief Program was implemented in early June to reimburse small businesses for costs incurred as a result of the mandatory closures due to COVID-19. The program will be funded through Tennessee’s Federal Coronavirus Relief Funds and is expected to distribute around $200,000,000 in funds to over 28,000 qualifying businesses. No application is required to be eligible for the Tennessee Business Relief Program because eligibility is based on whether the business collects sales tax or pays business tax. On average, the eligible businesses have annual gross sales of $500,000 or less. Businesses are eligible for the business relief program
Force Majeure
As the economic impact of the coronavirus pandemic is felt globally, many businesses are struggling to perform their contractual obligations, despite their best intention. While many businesses have been forced to suspend operations, those businesses need to consider their contractual obligations arising during this interruption of operation. Businesses need to contemplate how they will manage the impact of the crisis, what mitigations are available, and what remedies might be available. A common contractual issue that a business currently faces is suspending or terminating a contract. Many contracts include a force majeure clause. Force majeure clauses cover situations that are beyond the
Moratorium on Evictions: Virginia Order and Federal CARES Act
On June 8, 2020, the Virginia Supreme Court issued an Order which creates a moratorium on evictions in the state through June 28, 2020. The June 8 Order is an amendment to the previously entered June 1 Fifth Order, which did not address evictions in its extension of several operational guidelines related to COVID-19 protections. The decision to cease evicting tenants was based on a request from Governor Northam while his team creates and implements a rent relief program and a plan to minimize the public health risks that come with evicting residents. Virginia landlords should avoid pursuing an order of
Paycheck Protection Flexibility Act
On June 3, 2020, Congress passed the Paycheck Protection Flexibility Act, which marks the beginning of a second wave of Coronavirus related legislation expected to come out of Washington. The Act modifies several provisions of the Paycheck Protection Program originally implemented under the CARES Act in March. The goal of the Act is to create more flexibility within the forgiveness system in order to allow borrowers to achieve full or almost full forgiveness for their PPP loans. Most significantly, the Flexibility Act will allow businesses who have already received funds to extend the covered period from 8 weeks to 24 weeks.
Ways to Help Your Small Business During COVID-19; Application for Forgiveness of SBA Payroll Protection Program Loans
On March 27, 2020, the CARES Act became the first stimulus-relief package passed into law, which in part is able to provide $376 billion in relief for Americans and their small businesses. In addition to traditional SBA funding, the Act offers temporary programs directly related to Coronavirus relief. The Paycheck Protection Program (PPP) allows small businesses to keep their employees on payroll by funding eight weeks of payroll, rent, mortgage interest, and utilities. If the business only uses the funds for these reasons, then the SBA will forgive the loan. To receive partial or even full forgiveness of the PPP Loans,