Our colleagues at the Restructuring GlobalView Blog have prepared guides to assist businesses in Belgium, the Czech Republic, France, Italy, Poland, Slovakia, and Spain to understand what financial support packages are available in those countries. These guides provide a country-specific overview of the package, eligibility, how to apply, and when it will be available. Click below to read the guides for each country:
Our colleagues, Hon. John A. Boehner, Karol Denniston, Ed J. Newberry, and Stephen D. Lerner, will be joining the American Bankruptcy Institute (ABI) and FTI Consulting professionals for a webinar deciphering the most recent federal stabilization programs and developments and providing unique and practical advice for business leaders and professionals. The panel will also discuss how best to successfully navigate the liquidity and financial issues arising in the wake of the COVID-19 pandemic.
For more information, and to register for this free webinar on Monday, April 6, 2020, please click here. ABI membership is not required to register for the webinar; please use Chrome to register if you encounter difficulties using Internet Explorer.
As world leaders respond to the COVID-19 pandemic, businesses around the world have been forced to adapt. Our colleagues in Germany, Dr. Jens Rinze, Martin H. Falke, Dr. Christian Bleschke, Tanja Weber, Dr. Andreas Fillmann, Markus Schmucker, Jörg Staudenmayer, and Siemer Krümpelmann, have prepared a comprehensive overview of the key legal issues for businesses with operations in Germany to consider, together with some practical steps for businesses to take. Read the full report below:
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The CARES Act includes a range of extensive loan and grant programs that are vital to businesses across the country, including some US$500 billion in funding for the Department of Treasury that is expected to be leveraged by the Fed to produce more than US$4 trillion in lending to businesses, and possibly states.
Our Policy and Financial Services colleagues James J. Barresi, James C. Sivon, David Stewart, Edward J. Newberry, and Brandon C. Roman have produced an excellent summary of the extensive new Department of Treasury and Fed lending programs entitled “CARES Act Economic Assistance to Business Enterprises, States and Municipalities.” This report provides detailed information on multiple lending facilities established by the Fed to support business liquidity as well as Treasury Department direct lending to air carriers, cargo air carriers, and for businesses “critical to maintaining national security.” Read the full report below:
The CARES Act also provides more than US$360 billion in immediate loan assistance for small businesses, including (a) an expanded Economic Injury Disaster Loan (EIDL) program; and (b) the Paycheck Protection Program (PPP), administered under the Small Business Administration’s 7(a) program.
Our colleagues Pablo E. Carrillo, Kirk D. Beckhorn and Karen R. Harbaugh have produced a comprehensive report, entitled “Securing CARES Act Stimulus Assistance for Small Businesses,” providing guidance for small businesses seeking to secure stimulus funding to stay afloat during this unprecedented pandemic. The report answers important questions for small businesses which may need federal support including: what programs are created and funded by the Act, who is eligible for these programs and, based on information available so far, how the programs will work.
Read the full report below:
As world leaders and healthcare professionals respond to the COVID-19 pandemic, businesses around the world have been forced to adapt to new restrictions, unpredictable supply chains and a limited workforce. For medical and pharmaceutical products, demand is high and the efficient movement of inputs is critical. For many other industries, dwindling consumer demand is already cutting deep.
Our colleagues have prepared a report examining trade, supply chains and defense issues facing businesses in these extraordinary times. Please contact us at InternationalTradeCompliance@squirepb.com with any questions. Click below to read more.
The outbreak of COVID-19 could be the most significant event to impact the US economy in generations with the potential for ripple effects in the automotive market and supply chain for years to come. Accordingly, OEMs and suppliers from all tiers may need to rethink the supply chain model, from sourcing of raw materials to production of finished products and everything in between. The impact from the spread of the virus on industry, starting in vitally important Wuhan, and spreading globally, has been significant and immediate. Indeed, the “Big Three” automakers along with their European and Asian counterparts have felt the immediate effects of the virus, not only to protect their work forces, but as a result of falling markets and supply chain disruptions.
- Ford, GM and FCA have suspended manufacturing in parts of the US and repurposed for production of COVID-19 medical devices.
- Nissan has suspended production in the UK because of supply chain disruption and demand reduction.
- Daimler has suspended European production as supply lines are disrupted.
- Toyota has halted production in Europe because of government restrictions on the movement of people, supply chain disruptions, and falling sales.
- BMW has stated that the closure of its European plants and its factory in South Africa will last until April 19 as it copes with lower demand caused by the coronavirus outbreak.
- Honda has closed four US vehicle plants due to anticipated decline in the market as a result of coronavirus.
- Toyota Europe is shuttering plans across the continent in the wake of government coronavirus-related shutdowns.
- Renault is closing plants in Slovenia, Morocco, and Romania.
- Volkswagen is suspending production as a result of the outbreak.
This is a Cross-Post from The Trade Practitioner Blog. Please contact Frank Samolis, Rory Murphy, Stacy Swanson and Ludmilla Kasulke with any questions. For additional COVID-19 related legal advice, resources by regions and sectors, and practical support, please visit our Coronavirus COVID-19 resource hub.
The coronavirus’ impacts on global shipping are growing every day. While borders around the world generally remain open for cargo at this time, the cost of trans-Pacific and -Atlantic shipping of goods has increased substantially as a result. A primary factor is that international passenger flights have essentially ground to halt. In a typical year, passenger airlines transport 35% of global trade by value or almost US$7 trillion worth of goods per year. While American Airlines announced it would run some cargo-only flights between the United States and Europe, it is generally not economical for airlines to make such runs. Airlines are reportedly drafting plans for a voluntary shutdown of essentially all passenger flights in the US, an act that could severely undercut even domestic airfreight operations.
With limited passenger planes in the air, the demand for services offered by express shippers like FedEx, UPS, and DHL has increased, but those options are typically more expensive and could struggle with current demand. During an interview on Sunday, FedEx CEO Fred Smith said the grounding of many international passenger flights has “created significant backlogs coming into this country and a significant amount of traffic going back to China…the same thing’s true across the Atlantic.” The third coronavirus stimulus package unveiled by the Senate on March 25 includes up to US$4 billion in loans and loan guarantees for cargo air carriers, as well as another US$4 billion in financial assistance for cargo air carriers to continue payment of employee wages, salaries, and benefits. Ocean freight continues without the same level of disturbances but is a slower option for companies looking to quickly replenish inventory.
The US trucking industry is benefiting from the heightened demand resulting from increased consumer purchases of basic goods. However, it could face further disruptions if states begin placing restrictions on road travel and should they face delays crossing borders due to reduced staffing as customs officials fall ill or limit operations to ensure adequate distancing.
On March 25, 2020, the Senate passed on a bipartisan basis the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. With more than US$2 trillion in total relief and US$350 billion in support for small businesses, this bill, if enacted, would represent the third phase of legislation intended to help families and companies affected by the coronavirus disease 2019 (COVID-19) outbreak.
In anticipation that the small business provisions in the CARES Act will be reflected in the final bill agreed to by the House and enacted into law, our colleagues in the public policy group, Pablo E. Carillo, Kirk D. Beckhorn, Karen R. Harbaugh, and Brandon C. Roman, have prepared a client advisory that describes programs provided under all three phases of legislation that are intended to provide much-needed support for US small business concerns through this crisis. The client advisory concludes with a summary of the bankruptcy-related provisions in the CARES Act. Click below to read more:
On 23 March, the UK government announced the closure of a range of business and other premises, largely those whose business involved interaction with the general public. The Guidance issued by government explaining the effect of the decision included a detailed list of businesses which had to close, but also included the sentence – since deleted – “non-essential businesses and premises must now shut”.
We faced many questions from companies asking what this sentence meant for them and in our latest insight we consider how you should assess what to do with your business and also explores the implications of your decisions.
As we all wait eagerly to see what will be included in Congress’ most recent economic stimulus plan, companies may be interested to see what stimulus packages are already being offered. A list is here. If you hear of others, let us know!