Welcome to the May 8 episode of our Friday Mailbag! This week we’re touching base with the PPP loans, which have received additional guidance, and answering a question from a previous client about whether bankruptcy or dissolution is the best option for her company.
In the first part of the video, we dig into the updated SBA guidance on PPP loan forgiveness. Unfortunately, with SBA now 11+ days past its April 26 deadline to issue final regulations on the loan program, we’re relying on interim rules and trickled out guidance on how and whether the loan amounts will be forgiven. We also look at the safe harbor that was created for companies who applied for loans pre-April 24 and who may or may not have made the good faith certification about their need for the loan in good faith.
After that we turn to a question from a previous client, whose construction business is strapped for cash at the moment and having trouble paying its creditors and debts. She wants to know whether bankruptcy or dissolution is the “best” path for her company. The answer will apply on a case-by-case basis. There is a new subchapter of Chapter 11 bankruptcy for small businesses that could be an option for some companies to restructure their debt. For others, though, dissolving the business and liquidating the assets may be only viable path.
I realize that this week’s discussion got a bit long. Honestly, I could’ve gone on for hours on the intricacies of corporate liability protections. Instead, I tried to stick to the highlights.
However, if you have questions on how to keep your company’s corporate veil in place, whether you should file Chapter 11 bankruptcy, or whether dissolution and liquidation is the best path forward, we can discuss those options and set you on the right path.
Your questions, problems, and concerns about the complex world of business law are why we do these videos. If you have a question, please let us know. We’d love to hear it and answer it on a future episode!
