Blogs

Business and Financial Services

SBA Paycheck Protection Loans under the CARES Act

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) contains numerous benefits for businesses. One of these benefits is the addition of “Paycheck Protection Loans” to the existing Small Business Act (SBA) 7(a) loan program. The new program provides many businesses with 500 or fewer employees as well as non-profits, independent contractors, and sole proprietors, the ability to obtain government-backed, 1% interest loans from private lenders, with payments deferred for at…

April 4, 2020

Business and Financial Services

4 Tips for Businesses Impacted by the Coronavirus

Small businesses across the United States are currently faced with the very real and extreme effects of the Coronavirus on their continued business operations. This unprecedented illness and the resulting drop in substantial revenue of many companies will place great strain on businesses and forcing quick analysis and decision-making about how they are to deal with payment of their current financial obligations considering such falling revenue. While the answer may differ for each business and…

March 24, 2020

Bankruptcy, Restructuring and Creditors’ Rights

To Stay Clear of Stay Violations, Action May be Required

The automatic stay, imposed (automatically, of course) by the filing of a voluntary bankruptcy petition, is the most fundamental of protections offered by the Bankruptcy Code. The stay, governed by 11 U.S.C. § 362 , is designed to provide debtors with a “breathing spell” from creditors and the opportunity to liquidate or reorganize under the supervision of the bankruptcy court. It bars not only the commencement of any action against the bankruptcy debtor to collect debts, but also the…

July 2, 2015

Bankruptcy, Restructuring and Creditors’ Rights

Bankruptcy: Preference Defendants Don’t Feel “Preferred”

Bankruptcy preference actions can force businesses to return payments they received legitimately before a customer or counterparty filed for bankruptcy. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Andrea Campbell Davison explains how Section 547 of the Bankruptcy Code allows a trustee to recover certain transfers made in the 90 days before a bankruptcy filing if those payments gave one creditor more than it would have received in a Chapter 7 liquidation.…

March 4, 2014

Bankruptcy, Restructuring and Creditors’ Rights

Bankruptcy and Government Contractors

Government contractors that enter bankruptcy face a different set of risks than ordinary commercial debtors because the value of the business often depends on preserving existing federal contracts and eligibility for future awards. In this Bean, Kinney & Korman article published in the BKK Business Law Newsletter, Andrea Campbell Davison explains that Section 525(a) of the Bankruptcy Code can limit government discrimination based solely on bankruptcy status, but those protections are narrow in…

November 1, 2013

Bankruptcy, Restructuring and Creditors’ Rights

Bankruptcy – Not Necessarily an End to Construction Payments

Bankruptcy filings can create immediate disruption on construction projects, but they do not necessarily eliminate all avenues for payment recovery. In this Bean, Kinney & Korman article published in the BKK Construction & Land Use Newsletter, Juanita F. Ferguson explains that construction professionals still may have several important protections available even after a bankruptcy petition is filed. The article notes that while the Bankruptcy Code’s automatic stay generally prevents creditors…

September 1, 2011