What Happens If I Spend PPP Funds On Unauthorized Expenses?
Originally posted on Medium By Nate Riordan, Cat Reny and Alexander Morrison The Rules of Your PPP Loan The rules around the use of PPP funds contain some confusing labels. The PPP loan program was designed as a way to get money to small businesses and encourage those businesses to spend the money on certain expenses. If you spend…
Negotiating and Documenting Rent Relief
With over 20 years of experience as a bankruptcy attorney, I’m going to talk about how to approach negotiating and documenting rent relief. What we hope to accomplish is to give you a sense of the things that you need to think about and then the things that you need to ask for as part…
Tips for Franchise Business Owners Facing Pandemic Restrictions
As the pandemic restrictions press into its eighth month, small businesses are feeling the squeeze the most. There has been a 22% reduction in business activity nationwide (NBER), that’s 3.3 million inactive American business, some of which have closed permanently due to COVID-19 restrictions and the economic fallout that followed. And according to estimates from…
Force Majeure, Bankruptcy and Rent Relief During the COVID Pandemic
In what is probably an unprecedented decision, the United States Bankruptcy Court for the Northern District of Illinois has ruled that governmental shutdowns and restrictions imposed to curb the spread of COVID-19 could be considered a Force Majeure event and give business a valid reason to suspend contractual obligations during the pandemic. On June 3,…
EIDL Loan Applications Reopen
Economic Injury Disaster Loan (EIDL) applications reopened from all qualified small businesses, including agricultural businesses, and non-profit organizations but you must move quickly, it is unclear how long they will continue accepting applications. The EIDL Advance, a grant (not a loan), has already been discontinued because all funds have been disbursed and there are no…
Bankruptcy and the Impending Increase in Evictions
The economic crisis associated with the global pandemic is likely to result in extremely high numbers of both household and commercial evictions. As government-imposed eviction moratoriums end, and as federal unemployment benefits are curtailed, we expect to see considerable bankruptcy activity prompted by rent defaults. What will this mean for tenants contemplating bankruptcy, and for…
The Discharge: The Chapter 7 Bankruptcy Process
The Discharge is part 10 of a 10 part series on Chapter 7 bankruptcy and will provide general information regarding bankruptcy under Chapter 7. For the individual debtor, the desired result of Chapter 7 is the discharge order. Again, entities do not get a discharge. The Chapter 7 discharge, the extent of which is described…
The Creditors: The Chapter 7 Bankruptcy Process
The Creditors is part 9 of a 10 part series on Chapter 7 bankruptcy and will provide general information regarding bankruptcy under Chapter 7. A creditor may take an interest in the case, or may do nothing, depending on the situation. Here are a few examples where creditors may be active: 1. Claims. All creditors…
The Trustee’s Activities: The Chapter 7 Bankruptcy Process
The Trustee’s Activities is part 8 of a 10 part series on Chapter 7 bankruptcy and will provide general information regarding bankruptcy under Chapter 7. 1. Liquidation The trustee’s main role is to review the debtor’s schedules for nonexempt assets and, if appropriate, to liquidate those assets. If there are no nonexempt assets, the trustee…
Financial Education: The Chapter 7 Bankruptcy Process
Financial Education is part 7 of a 10 part series on Chapter 7 bankruptcy and will provide general information regarding bankruptcy under Chapter 7. Individual debtors are required to take a course in financial education subsequent to filing and prior to discharge. The discharge order will not be issued without a completion certificate on file…