Day Pitney is pleased to offer this practical guide for small businesses, including family-owned enterprises and family offices, seeking useful information on the impact of the novel coronavirus disease (COVID-19) on their operations and finances. This guide is intended to provide an overview of the issues currently confronting small businesses, including critical employment, financial and tax, and operational considerations, and it includes links to previously released guidance for more in-depth information.
Layoff Versus Furlough
Employees With COVID-19
Prohibition of Penalizing Employees for COVID-19 Leave
Information to Employees
Financial and Tax Considerations
Coronavirus Aid, Relief, and Economic Security Act Relief
The CARES Act makes loans available to small businesses through its Paycheck Protection Program, which provides the following:
Economic Injury Disaster Loan Program
Other Loan Forgiveness Options
Forgiveness or forbearance for certain loans will vary by state. In New York, for example, state-regulated banks are required to grant 90-day forbearance to certain borrowers. For more information, please visit here.
Even if your company is considered an essential business, you should institute remote work capabilities to the full extent possible and limit the number of employees in the office.
If an employee tests positive for COVID-19, depending on the state, the department of public health (or a similar agency) may require your office to close (and not reopen until authorized by the department or agency) and to go through special sterilization procedures.
Another consideration is whether a company has to notify third parties, such as customers or vendors, if an employee tests positive for COVID-19. Currently, there is no legal obligation for such notification, but in the interest of public health, some companies choose to notify third parties. The decision is dependent on the facts and circumstances – such as whether the third parties can be identified, whether they actually came into contact with the employee and whether the employee's identity can be protected.
Properly managing personnel during the pandemic is essential. We suggest assigning employees to teams to help deal with fatigue. Appoint a team leader for each group so that person can assist in disseminating information to staff.
Quickly assess your contracts (office leases, equipment leases, recurring supply orders, etc.) and consider whether they can be canceled or payments deferred. Please consult a Day Pitney attorney to assist in reviewing your agreements. For more information, visit here.
Provide relevant information to your clients or customers to keep them informed about your office, including revised operating hours and the availability of services.
General helpful resources
Day Pitney AlertsPreparing Your Business for the New Coronavirus, COVID-19
For more Day Pitney alerts and articles related to the impact of COVID-19, as well as information from other reliable sources, please visit our COVID-19 Resource Center.
COVID-19 DISCLAIMER: As you are aware, as a result of the COVID-19 pandemic, things are changing quickly and the effect, enforceability and interpretation of laws may be affected by future events. The material set forth in this document is not an unequivocal statement of law, but instead represents our best interpretation of where things stand as of the date of first publication. We have not attempted to address the potential impacts of all local, state and federal orders that may have been issued in response to the COVID-19 pandemic.
On January 20, Jim Rotondo spoke at the PLAC webinar, "The Future of CBD Law: 2021 and Beyond."
Day Pitney Alert
Day Pitney Alert
Day Pitney sponsored the Cafecito Hour for the Hispanic National Bar Association Corporate Counsel Division's Corporate Counsel Conference and Annual Convention (CCC/AC).
Day Pitney Advisory
Boston partner Jonathan Handler was quoted in the article, "'We All Lost A Year': Boston Attys Return To Changed Hub," on Law360.
Day Pitney Press Release
Tom Goldberg was quoted in the Law360 article, "How The Legal World's Response To 2020 Differed From 2008."
April Condon, Vice Chairwoman of the Stamford Partnership, was featured in the articles, "Stamford Partnership relaunches professional development program," and "Stamford Partnership revives leadership program for Fairfield County professionals."
Day Pitney Press Release