While the pandemic has impacted everyone, it has impacted some families more than others. It is not surprising that a family where one or both parents have lost their job (or now have a reduced income), work on the front lines or have different risk tolerances have a few more hurdles to get over. See this short read from Amy Robertson, a Chartered Mediator in Victoria, British Columbia. https://www.mediate.com/articles/Robertson-disagreement.cfm
Divorce is one of the most stressful things that a person will ever undertake. Oftentimes, people are so intent in formally ending a relationship that their decisions are often made under severe emotional distress. Here are some tips from Denise French, a certified divorce financial analyst, that can help you prepare financially for a divorce. https://www.mediate.com/articles/french-divorce-differently.cfm
All across America, places of work are considering the safety of its employees and personnel. Included is the psychological well-being of employees. Here is a brief articles by Lorraine Segal, M.A. describing 3 critical factors to consider. https://www.mediate.com/articles/segal-psychological.cfm
As a small business owner, you may be finding that COVID-19 and its effects present unprecedented issues with contract compliance. In considering a party’s performance under a contract, there may be several clauses built into your agreements that might be invoked to assist your small business.
Consider having an insurance specialist review your insurance policies – Your agreement may require that you carry business interruption insurance or other coverages that may apply to the presence of COVID-19. Review your policy for language about communicable or infectious diseases, or conversely, exclusions related to virus-related losses. It is best, if possible, to have an independent third party review the policy, rather than your broker or insurance company.
Consider sitting back down at the table – You and the other party to the agreement may be able to discuss whether there are alternative means to perform contractual obligations. The other party may be amenable to adjust performance under the circumstances, including extended deadlines or partial performance of obligations.
Review your agreement for force majeure clauses. For more information, see a recent Law Blog from Aric J. Garza Law PLLC relating to such clauses. Note that contractual clauses can be interpreted differently, so it is important to discuss your situation with an attorney, whether you are seeking to enforce or excuse performance under your contract.
To learn more about 0% Interest loans from LiftFund, visit: https://www.liftfund.com/loans/
On March 17, 2020, Texas Governor Greg Abbott instructed the Texas Workforce Commission to waive the waiting week for Unemployment Benefits. In addition to waiving the waiting week, the Texas Workforce Commission is exercising its authority under the Governor’s declaration of a Statewide Disaster to waive Unemployment Insurance work search requirements effective immediately.
You will need the following:
- Last employer’s business name and address
- First and last dates (month, day and year) you worked for your last employer
- Number of hours worked and pay rate if you worked this week (including Sunday)
- Information related to your normal wage
- Alien Registration Number (if not a U.S. citizen or national)
For Additional Services in San Antonio: https://www.workforcesolutionsalamo.org/
The U.S. Small Business Administration (SBA) recently granted Texas’ Economic Injury Disaster Loan (EIDL) assistance declaration, making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).
Small businesses who believe they may be eligible for an SBA EIDL, should visit the SBA’s website where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility. In order to qualify, businesses will need to assemble the following documents:
(a) Corporate governance documents (Articles of Incorporation, Articles of Organization (for LLC), or Registration of Sole Proprietorship;
(b) a Written statement justifying the nature and scope of economic injury and how/why nature of business was adversely impacted by the Coronavirus (one page/no more than two), such as loss of revenues, cancelled contracts, interrupted supply chain, etc., that resulted in economic injury;
(c) Current Accounts Payable and Accounts Receivable Aging as of date of filing for the loan;
(d) Three (3) years’ 1040 Federal Income Tax Returns for the business & owners;
(e) Three (3) years’ company FYE Income Statement and Balance Sheet and latest YTD Financial Statements (Company prepared is acceptable);
(f) Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amt., date, current balance, interest rate, collateral, purpose of loan, guarantors, status (e.g., current or past due with explanation) per row in table];
(g) Monthly two (2) years’ cash flow projections;
(h) Three (3) years’ Monthly Sales History up to date of filing for loan;
(i) Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports; and
(j) Required SBA Forms, including IRS Form 4506-T, Personal Financial Statement (SBA Form 413), Schedule of Liabilities & Fixed Assets (SBA Form 2202), Monthly Sales (SBA Form 1368), Home Loan (SBA Form 5c), if applicable.
Please share this information with any and all small business owners!
COVID-19 has brought about many horrible scenarios relating to public health and serious financial stress on our incredibly complicated financial system. But small businesses are confronting a specific issue–can COVID-19 excuse small businesses or individuals from their contractual obligations?
The answer depends on the language contained in the contract, local and state law (including Emergency Orders/Directives from governors and/or mayors), and the connection between COVID-19 and the parties’ ability to perform their contractual obligations.
Many contracts contain a “Force Majeure” clause or an “Acts of God” provision. These provisions apply when a contract cannot be performed due to causes which are outside the control of the parties and could not be avoided by exercise of due care. These clauses allocate risk between the parties when an unanticipated event makes performance impossible or impracticable for each party or both parties.
Also, the more specific the clause, the more limited application it has. Most clauses specify that they are only invoked when performance becomes impossible.
Courts generally require the party claiming force majeure to show that the event was not foreseeable and directly caused the failure to meet its contractual obligations. Thus, a pandemic resulting in mass closures of all restaurants, bars, schools and the like should not be a close call. This is not a normal risk of doing business.
Note that many contracts have specific requirements in order to trigger the “Force Majeure” clause or “Acts of God” provision–namely, notice to the other party.
A great article in The Texas Tribune (by Chris Essig, Ben Hasson and Brandon Formby) concerning proposed legislation to modify how property tax rates are set:
“Senate Bill 2 and House Bill 2 — both dubbed the Texas Property Tax Reform and Relief Act of 2019 — won’t provide across-the-board cuts to property tax bills. Instead, the bills would limit the amount of revenue that local governments like cities, counties and special districts can collect without voter approval.”