Home Posts tagged Bulkley Richardson (Page 3)

Federal Act Will Help Keep Workers Employed and Paid

By Contributor
Coronavirus

Bold Response to a Crisis

By Scott Foster

The CoronaCrisis has been a roller coaster for business owners. Starting almost a month ago, the rumblings of disruption began and have now erupted into complete and utter chaos. Business owners have been forced to make stark decisions — restaurant owners laying off their entire workforce; ‘non-essential’ businesses shutting down on 36 hours notice; whether and how to support employees facing three, then six weeks of cancelled school; supply-chain disruptions; canceled orders; canceled events; and more. Business owners have openly wondered, ‘how will my business survive?’

Fortunately, once the legislation pending in the U.S. Senate becomes law, which is widely expected, business owners — including sole proprietors and gig-economy workers — will be receiving a lifeline from the federal government that is unprecedented in scope, speed, and breadth.

Coined the Keeping American Workers Paid and Employed Act, the proposed provisions would appear to apply to every for-profit business with fewer than 500 employees (again, including sole proprietors). The act would allow these businesses (whether a corporation, LLC, partnership, or some other form of entity) to obtain a loan to cover payroll costs, including healthcare premiums and paid time off, rent, utilities, mortgage payments (interest, not principal), and interest on other pre-existing loans for an eight-week period falling between Feb. 15 and June 30, with a maximum loan amount of $10 million. The loan would be non-recourse, require no security or personal guarantees, and bear interest of only 4% with a repayment period of 10 years.

But this is not like any other loan ever offered. This loan would be forgiven in an amount equal to the sum of payroll costs, payments of interest on any covered mortgage, payments on any covered rent obligations, and covered utility payments. The amount to be forgiven would be reduced if the business reduced its workforce, and the forgiveness would not apply to payroll costs of any employees who were paid more than $100,000 in 2019. And the best part, unlike other debt that is forgiven by the lender, any amount forgiven under this program will be excluded from gross income.

To summarize, if you are a business and are willing to keep your employees on the payroll, pay your rent or mortgage, and stay in business, the federal government is prepared to pay your rent, your utilities, and your payroll (for employees making under $100,000 annually) for eight weeks, and the payment is tax-free. It sounds too good to be true, but the public policy is sound — the easiest and best way to get financial support to the most Americans is through their employers (especially in this time of historically low unemployment). 

We would expect loans under this program to start being processed by late April or early May, with funding happening as soon as the loans can be closed. The program is relying on banks and commercial lenders to aggressively participate as the primary lenders under the program, so you should be able to continue working with your current bank. 

Given the tight timeframe and the unprecedented scope of this program, Bulkley Richardson is preparing for an unusually high level of lending in the local market and will be prepared to help our clients navigate this new program, get the necessary loans, and submit the backup needed to qualify for the forgiveness.

Scott Foster is a partner at Bulkley Richardson.

Critical Business Issues to Consider During Pandemic

By Contributor
Coronavirus Features

Taking Action

If your business, or one or more of your major customers’ or suppliers’ businesses, have been or could be adversely impacted by the effects of the coronavirus outbreak, Bulkley Richardson recommends considering the following proactive actions:

1. Review Insurance Coverage. Most standard business insurance packages include ‘business-interruption’ coverage. Business-interruption insurance is designed to replace income lost in the event that a business is halted for some reason, such as a fire or a natural disaster. It can also cover government lockdowns or mandatory curfews or closings such as those becoming more widespread as a result of the coronavirus. In addition to lost income, such coverage may also include items such as operating expenses, a move to a temporary location if necessary, payroll, taxes, and rent or loan payments. Since the language that addresses the terms of business-interruption coverage and exclusions can be lengthy and complex, it can be helpful to have your policy reviewed by a qualified expert.

2. Review Critical Contracts. It is quite common for certain types of contracts, such as supply contracts that require future performance on the part of one or both parties, to include a contract provision that allows a party to suspend or terminate the performance of its obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. Such provisions are most often referred to and appear under a ‘force majeure’ clause of a contract. If disaster strikes or the unanticipated occurs beyond the control of a party, such in the case of coronavirus, a force majeure clause may excuse one or both parties from performance of their contractual obligations without liability to the other party.

Determining which types of circumstances will be covered by the force majeure clause is obviously essential. Standard provisions often cover natural disasters like hurricanes, floods, earthquakes, and weather disturbances sometimes referred to as ‘acts of God.’ Other covered events can include war, terrorism or threats of terrorism, civil disorder, labor strikes or disruptions, fire, disease, or medical epidemics, pandemics, or other outbreaks. Such provisions can also place certain obligations on a party seeking to take advantage of excused performance such as undertaking reasonable actions to minimize potential damages to the other party. As with insurance coverage, it can be very helpful to have the assistance of a qualified expert in reviewing contracts critical to the survival of your business.

3. Communications. Once you have reviewed the terms of your business-insurance coverage and critical contracts, you will be in a much better position to effectively communicate with your insurers, suppliers, customers, vendors, creditors, and other parties with whom your business has relationships concerning the uncertainties facing your business and the businesses of those with whom you have significant ongoing relationships.

Actions like placing an insurance carrier on notice of or making a business-interruption insurance claim, advising another party of your intention to exercise your rights under a force majeure clause of a contract or being prepared for another party with whom you have an important relationship to do so, or effectively communicating with a lender, landlord, or other creditor to productively address disruptions to such relationships are all critical to minimizing losses and ensuring the survival of your business. As with the interpretation of insurance policies and other contracts, input from experts can be very helpful in developing effective communications and providing advice concerning the parties to whom such communications should be directed.

Bulkley Richardson launched a COVID-19 Response Team to address issues critical to businesses and their employees. Call (413) 272-6200 to reach the team.

 

Bulkley Richardson Launches COVID-19 Response Team

By
COVID-19 Daily News

SPRINGFIELD — As developments surrounding COVID-19 continue to escalate daily, concerns beyond personal health and safety have quickly emerged. The virus has already made a significant impact on the global economy, altering the way businesses operate, as well as potentially seismic shifts in consumer activity.

To address issues critical to businesses and their employees, Bulkley Richardson has launched a COVID-19 response team comprised of seasoned attorneys in the areas of business, finance, employment, schools, healthcare, and cybersecurity. In this time of great uncertainty, businesses are seeking legal counsel to help navigate this fluid landscape and prepare as we enter a period of uncertainty and rapid change.

Bulkley Richardson understands that each business will be affected differently and that taking proactive measures may help to minimize the risk of business interruptions. This COVID-19 response team has prepared an initial catalog of issues to be considered by each business owner or manager and has posted this information at bulkley.com. In the upcoming days, we will be expanding on this list and providing further detailed guidance. If you have specific questions, contact a member of the COVID-19 response team below or call (413) 272-6200.

The team consists Scott Foster (business, cybersecurity), Mark Cress (business, banking and finance), Mary Jo Kennedy (employment), Ryan Barry (business, banking and finance, healthcare, schools, colleges, and universities), Judge John Greaney (strategy), and Christopher St. Martin (employment, teleservices).

Bulkley Richardson to Continue CyberSafe Series on March 11

By
Daily News

SPRINGFIELD — Bulkley Richardson continues its CyberSafe series on Wednesday, March 11 with a discussion on legal, technical, and law-enforcement responses to common cybersecurity incidents. “There Has Been a Security Breach. Now What?” will take place from 4 to 5:30 p.m. at Bulkley Richardson’s office in downtown Springfield.

This will be an interactive, scenario-based discussion, providing a unique opportunity to understand causes and consequences of these thefts and key lessons learned: from the CEO of a company that has twice been the victim of cybersecurity crimes; from the head of an IT company that was responsible for uncovering and responding to those and hundreds of other events (and who will include a demonstration of the depth of the dark web); from a national law-enforcement official responsible for investigating these crimes locally, but in a national and international context, and who is keenly aware of the issues of timing and cooperation; and from a cybersecurity attorney who will discuss what should — and should not — be done to fulfill associated legal responsibilities.

Speakers include attorneys Jim Duda and Lauren Ostberg of Bulkley Richardson’s Cybersecurity Group, Delcie Bean of Paragus Strategic IT, Julie Cowley of the FBI, and Eric Hagopian of Pilot Precision Products.

A networking reception will follow the program. Registration is required by e-mailing [email protected].

Betsey Quick Named ‘Excellence in the Law’ Honoree

By
Daily News

SPRINGFIELD — Bulkley Richardson announced that Betsey Quick, executive director, was named the “Excellence in the Law” honoree for Firm Administration and Operations by Massachusetts Lawyers Weekly.

Quick joined the firm in September 2017 and, during her short tenure in this role, has made a significant impact, including increasing the firm’s productivity, implementing policies, and advancing the overall mission of the firm.

Massachusetts Lawyers Weekly honors individuals in the categories of Firm Administration and Operations, Alternative Dispute Resolution, Marketing, Paralegal Work, Pro Bono, and Up & Coming Lawyers. Quick will be recognized at a reception on Thursday, April 30 at the Marriott Long Wharf Hotel in Boston.