Much has been written regarding the recent enactment of the Coronavirus Aid, Relief, and Economic Stimulus Act (“CARES Act”), the availability of its Payroll Protection Loans and the increase in the debt limit to $7.5 million for bankruptcy filings eligible under the subchapter V of the bankruptcy code. Subchapter V, created by the Small Business Reorganization Act of 2019, had a debt limit of $2.7625 million. The lower amount limited access to such relief to a large portion of the businesses in the Greater New York area. The stimulus program and this revision, while helpful, is not a panacea for the problems many businesses are and will face.

It is important for all business owners to be proactive and get out in front of the myriad problems presented by the disruption in business caused by the pandemic. There are tough conversations that need to be had with landlords, lenders and vendors. While it may be good to avail yourself of the limited available relief, now is also the time to look at your business and determine how it may be structured to better survive this and future economic events.

Forchelli Deegan Terrana LLP is here to help you. FDT’s Corporate Restructuring practice group, as well as all other attorneys and staff, remain fully engaged with secure remote access. Please email Gerard R. Luckman at GLuckman@Forchellilaw.com for assistance.

Stay safe, be well.