The pandemic may force the Small Business Administration to rely more on fintechs and digital channels to hasten loan approvals, a shift that could stick.
The app, set to roll out this month, will be offered to the 38 million Office 365 users and can connect via the data aggregator Plaid to all bank and card accounts.
The unfolding of the COVID-19 virus episode has been the weirdest experience in my lifetime. I remember the courthouse bombing by Timothy McVeigh in Oklahoma City and commercial jets hitting the Twin Towers on 9/11, but those were one day events.
The corona virus is different because it continues from day to day and all of us are potential victims. You see young people dying on breathing machines and you realize your family is not safe.
At first the virus seemed like just a bad version of the flu and I dismissed it, but as I kept reading news reports I realized this was different and it was heading our way. Then it became apparent that all my staff would soon be working from home.
Our attorneys have always been able to work from home, but not the paralegals. I scrambled to purchase computers and then raced to my tech vendor set them up. Thankfully we got the job done just before daycare services closed so all our staff can work from home.
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The validity of an
Gordian Group’s President and Head of Restructuring and Distressed M&A Peter Kaufman argues there is no more easy money for a lot of companies as the coronavirus hits the economy.
The post The Credit Bubble Has Burst Amid Coronavirus: Investor | Fox Business News Mornings with Maria appeared first on Gordian Group, LLC.
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What should German organisations be doing to mitigate the impact of Covid-19 on their business, staff, supply chains, etc
Here is an overview of the key legal issues for businesses in Germany to consider, together with some practical steps for businesses to take.
Last week, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law, implementing broad relief for individuals and businesses affected by COVID-19. One of the sections of the CARES Act receiving less attention is a temporary amendment to the Bankruptcy Code to provide streamlined reorganization procedures for businesses with debt of less than $7.5 million.
In February 2020, President Trump signed into law the Small Business Reorganization Act (SBRA) designed to decrease the cost and complexity of reorganization for small businesses with debt of less than $2,725,625. The SBRA allows these smaller businesses to confirm a plan without the need for a disclosure statement and owners to retain their business without providing new value under the plan. In an SBRA bankruptcy, an unsecured creditors’ committee will generally not be formed, and each case will have a trustee who can assist the debtor in negotiating a plan and administering plan payments.
Read More from: Bankruptcy Law Insights
Tribal leaders and federal officials this week will begin the task of implementing the economic relief programs of the Coronavirus Aid, Relief and Economic Security Act (or “Act”) passed by Congress on March 27, 2020. The U.S. Department of the Interior will host the first consultations with Tribes to discuss funding formulas and eligibility rules of the $8 billion Tribal Stabilization Fund through a teleconference on Thursday, April 2, and on Thursday, April 9. The Tribal Stabilization Fund is one of three initiatives in the Act that Tribes and their business entities may use to mitigate the downturn of their economic enterprises. Highlights of the three programs and how they might help your Tribe and Tribal businesses follow:
U.S. Department of Treasury Tribal Stabilization Fund:
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Federal Housing Finance Agency Director Mark Calabria said a virus-induced financial crisis might give rise to more delinquencies and foreclosures than the 2007 subprime mortgage meltdown.
In supporting the economic recovery from the coronavirus pandemic, lenders have a chance to restore public trust damaged in the last financial crisis. But they face tough decisions on dividend cuts, executive pay, furloughs and deeper changes to their business model in the process.
The firms say they can't handle crushing loan demand from small and medium-sized businesses.
Lenders and government guarantors can use loan technology to bring immediate relief to business owners, former OCC official Jo Ann Barefoot says.
The final text of the act is now available here. The foreclosure relief is in Section 4022 and the eviction moratorium is in Section 4024. Mortgage borrowers with federally related loans (FHA, VA, Farmer's Home, Fannie or Freddie) may request 6 months of forbearance, i.e. no payments required, renewable for another 6 months, during which no late fees or penalties may be imposed, but interest continues to run (unlike student loans.) Homeowners need not provide documentation; a certification that they are affected by the COVID-19 crisis is enough. There is no statutory provision for loan modification after the forbearance period ends, so unpaid payments will still be due, but the agencies will likely be requiring or encouraging servicers to offer workouts when the forbearance ends. Section 4023 provides relief for landlords of multifamily buildings with federally related mortgages, conditioned on no evictions.
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SBA loans could pour billions into bank coffers; Fed bailed out government-backed market, others may suffer.
Emerald Capital Advisors v. Victory Park Capital Advisors, LLC (In re KII Liquidating, Inc.) 607 B.R. 398 (D. Del. 2019) – A chapter 11 unsecured creditors’ committee sought to recharacterize or equitably subordinate and to avoid claims for advances made … Continue reading
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After budget cuts and a strategic transition, the interagency body conceived by Dodd-Frank to identify systemic threats has largely been silent as the pandemic roils the economy.
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The Treasury Department and Small Business Administration are responsible for distributing $350 billion in coming months.
While some big banks have pledged to avoid layoffs this year, hiring freezes and delayed projects are becoming the norm during the pandemic.