» For Creditors|Illinois Bankruptcy

FactorLaw is proud to announce that our colleague, Elizabeth Peterson, was awarded the David S. Yen Bankruptcy Help Desk Volunteer of the Year for the Northern District of Illinois

Legal Aid Chicago’s nomination of Elizabeth describes her significant contributions to the Help Desk at the Chicago Bankruptcy Court, noting that “Liz has been an active volunteer since January of 2019. Liz has truly shown her dedication to the B… Read More
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Pier 1 Bankruptcy Court Abates Payment of Post-petition Rent due to Pandemic

Like other national retailers, Pier 1 Imports filed for bankruptcy in March, hoping to sell its assets and to liquidate under-performing locations. Then the Covid19 Pandemic hit the U.S. with its full force, causing mandatory stay at home orders in a… Read More
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SBA Provides Guidance on Frequently Asked Questions About the Paycheck Protection Program

The SBA has provided the following answers to frequently asked questions about the Paycheck Protection Program (“PPP”). The full guidance is available at https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequenty-Ask… Read More
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Fed Announces Program to Bolster Payroll Protection Program Lending by Large Banks

The Federal Reserve appears to be taking action designed to bolster the Payroll Protection Program by allowing banks to sell the low-interest loans (which are capped at $10 million) to the U.S. central bank for cash. This move is designed to ease pre… Read More
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Merchant Cash Advances and Covid-19 - A Double Whammy.

Businesses that have obtained financing through Merchant Cash Advances, and that have been shuttered by the Covid-19 pandemic, may be hit with a double-whammy — reduced cash flow to pay critical expenses (e.g., payroll) and aggressive collectio… Read More
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The Payroll Protection Program -- Offering Help to Small Businesses.

On April 2, 2020, the Small Business Administration issued guidance on the Paycheck Protection Program contained in the recently enacted Coronavirus Aid, Relief, and Economic Security Act (a/k/a the CARES Act). The Paycheck Protection Program will pr… Read More
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The Illinois Department of Financial and Professional Regulation Announces Help for Consumers and Small Businesses Struggling to Make Payments on their Debts Due to the COVID-19 Crisis and Guidance for its Regulated Financial Sectors

On Monday, March 30, 2020, the Illinois Department of Financial and Professional Regulation announced a series of actions to ensure the protection of Illinoisans in many areas of small business and consumer borrowing, servicing, and collections. The… Read More
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Access to Covid-19 Small Business Loan Program Expected Later this Week

Steven Mnuchin has announced that further details on accessing the SBA’s Covid-19 relief loan program should be available later this week. At this point, applications for the program are not available, but Mnuchin’s announcement hopefully… Read More
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Tired owner sitting on floor in closed cafe, small business lockdown due to coronavirus.

When Does the Covid-19 Crisis Compel a Bankruptcy Option for Small Businesses and their Owners

For your information, FactorLaw has prepared the following discussion of how and when chapter 11 can be a viable option for small businesses (or their owners) that are dealing with financial distress caused by the Covid-19 Crisis (the “CVC”). Alt… Read More
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WSJ Reports that Small Business Lenders are tightening standards in response to current economic uncertainty.

In today’s challenging economic environment a lifeline for small businesses may be harder to access — high interest rate small business loans. According to a report in the Wall Street Journal from March 28, 2020, “banks and financia… Read More
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