The Gourjian Law Blog

Coronavirus - Small Business Bankruptcy?

by Gourjian Law Group on March 19, 2020

Social distancing is a responsible way to avoid contracting viruses, but it creates a financial strain on small businesses. Health and safety is the main priority in this time of crisis, and businesses must adhere to their best practices. However, this leads to significant business disruptions, such as products not being delivered to businesses on time, employees feeling unsafe to attend work, and customers not leaving their houses or making purchases. Owners of small businesses are now forced to make some tough decisions regarding how, or even whether, to continue operations as the virus spreads through the United States.

According to the US Small Business Administration, the SBA is planning to work with state Governors to explore the opportunity for low-interest loans to be given to small businesses and non-profit organizations that have been severely affected by the Coronavirus. Facebook is also exploring options to gather resources to help small businesses affected by the Coronavirus. 

Our advice to small business owners:

Think proactively. Communicate and negotiate with your suppliers and vendors in this time of uncertainty. Explore your options regarding making debt payments. Consider filing for bankruptcy as an option for restructuring or entirely eliminating your debt. Consulting with one of our bankruptcy attorneys does not mean that you have to file for bankruptcy, but we can provide you with some answers and advice on how to move forward with your business during this time of uncertainty. 

If your small business is suffering difficulties exacerbated by the COVID-19 Coronavirus, we are here to help. It is our priority to protect our clients’ economic interests, and in this difficult time of uncertainty, we understand that your business may be experiencing unforeseen hardships. Gourjian Law Group’s expertise in all aspects of business and bankruptcy law can help you. 

Gourjian Law Group’s attorneys have experience working in unstable economic times and we are ready to advise you on maintaining financial stability. Our attorneys have extensive bankruptcy and creditors’ rights experience in both transactional and litigation contexts. We are available to help you minimize disruptions to your business as we explore the potential implications that the coronavirus may have on your operations and your bottom line.

The degree of damage caused by the Coronavirus on the global economy is still unknown, but we are aware that it currently poses a significant risk to your business. Our team is driven by results and has the knowledge necessary to help you navigate this storm.

Here are some resources that may be helpful to your business:

We are here to help.  Please email us or call us directly t +1 (818) 956 - 0100.