The Coronavirus has put us all in a bad spot financially, but small business will most certainly be the hardest hit. If you are a small business owner, there are things you can be doing now to soften the negative economic impact on your livelihood:
1. Review your contracts thoroughly.
For businesses who rely on events, sales and other contractual business, it is important to know whether or not your current contracts have protections in the event that you may have to cancel or alter them. Each contract and situation is different so it’s a good idea to get legal help on the clarity of safeguards (or lack thereof) within your contracts.
2. Minimize Breach
In the event that you will have to break your contract in any form, start troubleshooting ways in which you can minimize a contractual breach. Can you offer your clients a different type of fulfillment of the contract that will satisfy both parties? Is there room for postponement? Is there some form of government aid that you can use to make the situation work?
3. Review Trade Agreements
If you are in the business of manufacturing or distribution or any other form of business that relies on international trade, start by analyzing current trade agreements to determine how they might impact or enhance your legal rights. Once you’ve done your research, consider whether or not you will have to go to court in order to defend your rights.
4. Know Applicable Government Programs
The government is working to come out with small business loans and grants and already has several Coronavirus small business relief programs such as CARES (Coronavirus Aid, Relief, Economic Security) Act and the Paycheck Protection Plan. These programs include loan forgiveness, tax adjustments and relief for paid sick leave. As the government issues more Coronavirus small business assistance programs, it’s important to ask questions to determine if you qualify.
With the uncertainty of what the future holds, this is a difficult time for us all. However, with careful planning and understanding of current and evolving protection laws, there’s hope we will get through this.
Chuck Kozak is a veteran lawyer with nearly $1 Billion in settlements. Follow Kozak & Associates on Facebook to stay up to date with future blogs, tools, and resources we create to serve you. Need a free case review? Talk to Chuck.