Federal Bankruptcy Court Rules Gov. Pritzker’s Executive Order Triggered Lease’s “Force Majeure” Provision
Last week, a Chicago-based federal bankruptcy judge ruled that Gov. Pritzker’s Executive Order addressing the COVID-19 pandemic triggered a lease’s “force majeure” provision entitling a tenant to a rent reduction.
Earlier today, President Trump signed the Paycheck Protection Program Flexibility Act of 2020 (“PPPFA”). The PPPFA addresses the problem many employers were facing with the ability to seek loan forgiveness based upon restrictions under the Paycheck Protection Program (“PPP”) enacted earlier this year.
Recent events have led to weighty economic issues in the United States and around the world. While this will continue to cause anxiety and present serious challenges, the current situation has also created a significant opportunity to maximize wealth transfers and avoid transfer taxes. Two factors have converged to make this opportunity.
Despite the COVID-19 restrictions in place in Illinois, SFBBG attorneys are active in successfully litigating remotely and in person.
The COVID-19 pandemic has drastically disrupted all businesses, employers and government entities. Indeed, virtually the entire global economy has been affected. Shutdowns, the need for social distancing and efforts to contain the spread of the virus has led to the closing of businesses and the cancellations of services and events.
Earlier this year, the State of Illinois enacted new legislation requiring every Illinois employer to provide mandatory sexual harassment prevention training for all employees on an annual basis. While the COVID-19 pandemic has profoundly upended businesses and employers throughout the nation, the mandatory training obligations for Illinois employers have not changed.
Government officials are either lifting or planning to lift COVID-19 stay-at-home orders. To reduce the impact of COVID-19 outbreak conditions on businesses, workers, customers, and the public, all employers should plan now to prepare their workplace for COVID-19.
In the weeks since the enactment of the CARES Act and implementation of the Paycheck Protection Program – a forgivable loan program designed to assist small businesses to retain employees – many questions have been raised regarding the resulting tax consequences and implications to small businesses participating in the program.
Following the issuance of Governor Pritzker’s March 20, 2020, “Stay at Home” Executive Order (“Order”) [include link here to Order No. 2020-10], individuals and companies with real estate closings in the pipeline suddenly, and quite justifiably, panicked: “Does this mean we can’t close our deal?” For now, the answer is yes, you can still close your deal, with precautions, good planning and an abundance of patience.
President Trump signed the $484 Billion stimulus bill, adding additional relief for small businesses and healthcare. This stimulus package includes $310 Billion in additional funding for Paycheck Protection Program (“PPP”) loans. The funds are expected to be absorbed far more quickly than the 13 days of the initial PPP funding.