Debt Relief Options for Small Businesses Affected by Coronavirus (COVID-19)
Small businesses are feeling the effects of the novel coronavirus pandemic, also called COVID-19. No one knows for sure how long it will take to contain the spread to a place where individuals can resume their everyday routines, like dining out, perusing their favorite shops, or even reading the Sunday paper at their local coffee shop. Until then, small business owners are bracing themselves for the economic impact.
If you’re a small business owner who is facing the financial consequences of the coronavirus, we’ve provided a list of options below that you may find useful for your small business.
We hope you never need us, but if you do, we’re here. Give us a call at 303-688-0944 if you have any questions, or you can schedule online a time to talk with us.
Small Business Administration Loans
The Small Business Administration (SBA) will make low-interest loans available to affected communities in states and territories that request Economic Injury Disaster Loan assistance. Our attorneys can help you apply for the loan so that you are in the best position to maximize benefits available to you. They can also assist small businesses that are denied loans. We can help you develop an argument that gives you the best chance of winning your appeal.
Check out the full article on the Small Business Administration’s emergency loans that are available in response to COVID-19’s impact on small businesses.
You Still Deserve to Get Paid – Collections During the PandemicIt may seem harsh to begin collections during this uncertain time, but your small business is also your livelihood. There are a number of ways our attorneys can help you collect debts owed to you.
If you’re faced with a debtor who won’t pay what they owe, it’s in your small business’ best interest to seek legal advice. Read our full article on collections.
Defending Your Small Business When You Get Sued
You may have already heard the phrase “social distancing” as part of the COVID-19 outbreak. Health officials say staying away from large groups should curb the spread of the respiratory illness. However, so-called social distancing isn’t only curbing new infections, it’s likely curbing your small business’ revenue. If you can’t bring in money, you may find it difficult to pay all of your bills. If this goes on for too long, a creditor may sue you.
If your small business gets sued, you should contact a lawyer. They understand the debt collection process and can help defend you against it. Read how we can defend you in a lawsuit.
Small Business Debt Relief Option
through Chapter 11
Chapter 11 bankruptcy is now a viable debt relief option for small businesses thanks to the Small Business Reorganization Act of 2019 (SBRA). In fact, this new law recently took effect (February 2020). The SBRA removes or simplifies Chapter 11 rules that largely prohibited small businesses from benefiting from Chapter 11 bankruptcy.
COVID-19 is hurting small businesses in communities around Colorado. If yours has taken a hit, you may consider debt reorganization through Chapter 11. It will allow you to keep your business, your interest in your business, and find some relief from overwhelming debt. Read the full article about how our attorneys can help you move forward with the debt relief option that is right for you.
Small Business Liquidation: Chapter 7
If you simply don’t see a way that your small business will ever recover from the debt it has amassed, Chapter 7 bankruptcy may be the debt relief option for you. This bankruptcy is considered debt liquidation.
Your business’ assets will be sold to pay off your creditors. In many cases, you are allowed to retain your “tools of the trade,” as they are considered your livelihood. Find out more about Chapter 7 bankruptcy and how we help you get a fresh start.