COVID-19 Financing and Insurance Options
March 27, 2020 at 9:00 am |
To Our Clients and Friends:
RE: COVID-19 Financing and Insurance Information
We are committed to providing you with information in a concentrated way to assist you in dealing with the outcomes related to the COVID-19 outbreak and the various economic consequences and fallout related thereto. We recognize the challenges of time, the fluid nature of the situation, and volume of information you are receiving. The information below is categorized in a way that should be efficient and effective to use as a quick reference. We advise you to consider each of these items as your move forward.
Insurance
Carefully review your business interruption, general liability, and workers compensation insurance policies with your agents/brokers for opportunity for insurance reimbursements. We strongly urge claims to be made even if you believe the chance of recovery is slim. Be mindful of notice and filing timelines under the policies. Initial resources tell us that most business interruption policies have exclusions for viruses so losses are not likely to be covered by the policy language.
Financing
The first step is to be in contact with your banker. Keep them up to date on your business and financial affairs. Also, inquire about offers and programs they have available. Many are deferring payments for a period of time to assist their customers with cash flow needs.
The Small Business Administration (SBA) is offering qualifying small businesses direct disaster loans of up to $2 million per borrower due to the outbreak. We urge all companies that qualify to apply as soon as possible. We fully expect the volume of applicants to eventually overwhelm the SBA’s ability to process them — it would be wise to be in the front of the line. See SBA Disaster Loan Overview and SBA Business Disaster Loan Application Forms for more information.
The Pennsylvania Industrial Development Authority (PIDA) is now accepting loan applications (maximum loans of $100,000), but they are likely to go fast. From our discussions it appears that only a limited number of companies (an early estimate of perhaps 30 per county) will be successful in attaining them. See PIDA Loan Programs for more information.
Stimulus Package
As many of you know, Congress and the President are working on a mammoth stimulus package. We will review this package and communicate the relevant portions once they are available to us.
Our focus as a firm is on helping you through this difficult season that we are in. As such, do not hesitate to reach out to us with questions. We will do our best to find answers or direct you to resources that can be of assistance. We will also continue to stay on top of current opportunities and will update you accordingly. Thank you.
