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"It’s never to early to begin planning for re-opening! Our team has built what I believe is a very strong phased approach towards responsibly re-opening our venues in what is sure to be a challenging environment. I wanted to make this plan public in the event that it is useful to some, as well as to collaborate with others who may have their own plans. We are stronger together!" - Mitchell Roberts CEO of EVO
A few key points of advice to those looking to establish their own plans: 1.) Expect and prepare for heavy lead times and unexpected costs. Operating in the upcoming “new normal” will almost certainly require equipment that you most likely do not have. (Masks, Touchless Thermometers, Sneeze Guards, etc.) These items are currently seeing 2-3 week lead items. Get ahead of that. 2.) Don’t forget your team members. I’ve seen a lot of great guest-focused precautions, but don’t forget to take care of your staff too, as they are the ones on our front lines. 3.) Last but not at all least, weigh the impact of public perception. As important as it is that our guests ARE safe, it’s equally important that they FEEL safe. Public Perception will be the fuel that ignites our return to normalcy. Here are some of the steps they will be taking in EVO restaurants - reducing table capacity to 50% - limiting groups to no more than 4 - removing bar stools from the bar - using disposable paper menus - sanitizer on every table - masks required unless eating - mask & nitrile gloves required for servers Currently exploring mobile ordering as well.
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UTSA launches COVID-19 Business Recovery Accelerator to help businesses access emergency funds4/15/2020 APRIL 15, 2020 — The UTSA Institute for Economic Development today launched the Small Business Development Center COVID-19 Business Recovery Accelerator (SBDC COBRA) to help small businesses weather the financial hardships caused by the coronavirus pandemic. COBRA is the only recovery accelerator of its kind in Texas to help stabilize and rebuild the small-business economy.
COBRA will provide small businesses with the counseling and resources to pursue loans from the financial industry and to begin recovering from the economic impact of the COVID-19 pandemic. The accelerator will serve businesses in Bexar County and 10 surrounding counties. It will be funded by a $1.2 million grant from the U.S. Small Business Administration. “For nearly 40 years UTSA’s economic development programs have been creating jobs, growing businesses and strengthening the economy,” said UTSA President Taylor Eighmy. “UTSA is committed to leveraging its knowledge enterprise to support the community in this time of need. I can think of no better way to do that than to pave the way for small businesses to get emergency financial relief.” Friday, April 3 was the first day small businesses and sole proprietors could apply for Paycheck Protection Program (PPP) loans. That day, Inc. editor-at-large Kimberly Weisul spoke with U.S. Chamber of Commerce executive vice president and chief policy officer Neil Bradley as part of the National Small Business Town Hall webinar series. Here are some of the most popular questions Inc. readers submitted during the town hall, along with answers from Bradley and other experts.
Inc. and the Chamber will hold its third town hall in the series Friday, April 10 at 12 p.m. Eastern. Registration is now open. 1. Which lenders are accepting applications for PPP loans? The loans are being made available using a tiered rollout system, with traditional Small Business Administration lenders being the first institutions that can accept applications. Other financial institutions--including credit unions, Farm Credit System institutions, and Community Development Financial Institutions (CDFIs)--are now in the process of being added and will begin accepting applications in the coming days--if they haven't already. National Small Business Town Hall for Small Business Owners (Inc. and the U.S. Chamber of Commerce) Webinar - Urgent Updates: Answers to Crucial New Questions Around the Stimulus Bill (click here)
Find out answers to:
The speakers, Tom Sullivan, U.S. Chamber of Commerce, Vice President Small Business Policy, and C. E. "Tee" Rowe, President and CEO of America's Small Business Development Centers, provided essential feedback on:
How the Paycheck Protection Program is different from an economic injury disaster loan
Who is eligible? In order to qualify for an SBA economic injury disaster loan, a business must prove substantial economic injury – that it is unable to pay its ordinary and necessary operating expenses. The point of the loan is to help a business ride out a disaster period until normal operations can resume – it applies to situations where there is no physical damage. In order to qualify for PPP, a business must have less than 500 employees and be affected by the coronavirus. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. PPP is designed to incentivize companies to keep employees on staff. It is expected to move cash more quickly than the SBA’s other program, for faster economic relief. Their seats spread far apart from each other, Bexar County commissioners on Tuesday approved a loan program to tide small business owners over amid the economic strife caused by the pandemic.
In an effort to practice social distancing, the commissioners sat in separate desks instead of on the dais at their regular Tuesday meeting. They discussed the “Stay Home, Work Safe” orders issued Monday by Mayor Ron Nirenberg and Bexar County Judge Nelson Wolff, which directs people to stay home as much as possible to avoid spreading COVID-19. “Basically, what we’re trying to do in the order is try to get a balance as best as we can between the public health challenge and the economic consequences of that,” Wolff said. “The order is telling people to stay at home unless they’ve got an essential trip or they’re one of the employees designated by their business to be there.” Safe to say, the world as it is today is a vastly different place than it was when you first signed your commercial lease. Unforeseeable circumstances— sometimes referred to as ‘force majeure’ or ‘acts of god’— have a way of complicating business. With the recent social distancing and subsequent economic slowdown caused by the COVID-19 outbreak, many restaurants find themselves struggling to stay afloat.
One of the most crucial issues to deal with is how to make your contractual payments— such as your lease expenses— when your company is bringing in little to no revenue. There are very few businesses that can afford to sustain these payments during times of extreme economic stagnation. While it can seem harsh for your landlord to keep demanding payments, it has to be remembered that they’re in a similar situation. Landlords also have large expenses, such as property insurance and mortgages, that they need to make monthly payments on; they rely on collecting rent from to make those payments. During this period of uncertainty, we wanted to provide the world with some valuable insights into the current state of the retail landscape. Our hope is that the community can tap into these insights to keep the current pulse of the market.
With that, we're excited to announce the launch of our COVID-19 (Coronavirus) Retail Impact Tracker, free for all. This powerful tool allows anyone to quickly analyze the impact the Coronavirus has had on over 70 top brands within the retail, restaurant, and amusement industries. Compare how daily foot traffic has changed (year-over-year) in correlation to the number of confirmed Coronavirus cases in that region. Through the dashboard, users can can analyze the performance of major brands like Walmart, McDonald's, Ulta Beauty and Macy's on both a national and/or state level. Our hope is that this data will allow our customers, users and community to make more informed decisions through these trying times and help prepare as we eventually return to normalcy. It is the first time the U.S. will have broad federally mandated paid leave. But some will be excluded from the emergency measure.
The coronavirus emergency relief package, which became law Wednesday, gives many American workers paid leave if they need to take time off work because of the virus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least It is the first time the U.S. will have broad federally mandated paid leave. But some will be excluded from the emergency measure. The coronavirus emergency relief package, which became law Wednesday, gives many American workers paid leave if they need to take time off work because of the virus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers. What type of paid leave does the law offer?It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of coronavirus. half of private-sector workers, including those at the country’s largest employers. What type of paid leave does the law offer?It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of coronavirus. Businesses — large and small — are being gutted by the COVID-19 pandemic and government restrictions to stem the tide of infection. Recent directives require that restaurants and bars close (with the exception of certain takeout and delivery services), that sporting, concert and other large-scale venues cease holding events, and that gyms shut their doors until further notice. Business disruption is a given, although the extent of its impact is an unknown.
As business owners and landlords assess the damage, they should review key aspects of their commercial leases. While some provisions may permit landlords to accelerate payment obligations or draw down letters of credit in the event of non-payment, others may create exceptions to continuous operation and other tenant covenants or present novel grounds to demand rent abatements under government taking theories. Parties also should consider the practical impact of the pandemic on the legal system in devising a strategy on whether and how to enforce their rights. This calculation should take into account assistance that may be offered by federal, state and local governments to mitigate the impact of COVID-19 on businesses and their employees. The Coronavirus Disease 2019 (COVID-19), is the latest viral outbreak affecting the physical and economic health of the world. With a global impact and over 1,600 reported cases identified in the United States (as of the date of this bulletin), the World Health Organization classified the outbreak as a pandemic on March 11, 2020.
COVID-19 belongs to the same classification of viruses which caused Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS) and has already had a significant impact on business operations throughout the country as state, local and national governments have declared states of emergencies, which include, halting of trade with China, cancellation of some domestic and international flights, closing of schools and public gathering places and many more daily disruptions that have had a swift impact on individuals and businesses. As COVID-19 continues to spread across the United States and world, commercial tenants and landlords, as well as buyers and sellers of real estate will encounter challenges in meeting contractual obligations due to the fluid nature of the outbreak and governments’ continued and ever-evolving attempts to contain it. Landlords and tenants are actively analyzing the impact on supply chain reductions and decreased retail traffic due to “social distancing” mandates. Buyers and sellers face the possibility of travel restrictions preventing on-site third party due diligence review and site inspections as well as standard tenant interviews. Additionally, the containment efforts may disrupt debt availability from local and regional lending institutions and cause a possible back log of deed and mortgage filings in the event state and municipal government recording offices are required to close their doors. Relevant questions companies should address are (i) whether the failure to perform contractual obligations due to COVID-19 related causes constitutes a breach of contract or default, (ii) whether there is an exemption under contractual force majeure provisions for such pandemic causes, (iii) whether government or quasi-government (Civil Authority) directed closures and shut downs due to COVID-19 are covered by insurance and (iv) whether events caused by or related to COVID-19 constitute a material adverse change under the terms of a contract. Force Majeure, Insurance, MAC Clauses are further discussed in this article. |
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