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December 2020: Consult the Expert Featuring Harry W. Greenfield

November 16, 2020

Q: What are some of the biggest obstacles facing companies in financial distress from considering restructuring?

A: Like most things in life, sometimes the biggest obstacle is recognizing that there is a problem. Many times when a business is in financial distress, the owners believe that the solution is right around the corner. As a result, the owners often continue to infuse their own capital into a failing enterprise without considering structural changes to the business. Until you have a plan that can fix the reason for the financial distress, all you are doing is throwing away your good money.

If a business is going to restructure and survive, or liquidate and pay creditors, the owners must recognize the trends quickly and take decisive action. During financial distress, cash is king. Identifying problems, preserving cash and obtaining professional advice are the best ingredients for a successful restructure or wind down, and will result in the best outcome for both the creditors and the owners of the business.

Harry W. Greenfield
(216) 294-4950
hgreenfield@bernsteinlaw.com

Why You Should Make Estate Planning Part of Your Business Discussion

By Suzanne Jett Trowbridge
Of Counsel, Bernstein-Burkley, P.C.

While estate planning is not typically part of a business discussion, in the midst of the coronavirus pandemic and the concerns we all have, it’s an important topic to review or to take a first look at, a plan for the succession of your business and/or personal estate in the event of your death or even disability.

Medical Power of Attorney

As a threshold matter, a medical power of attorney and a living will are almost essential. In West Virginia, the approved form is a single document that appoints someone (your Medical Power of Attorney) to make medical decisions for you in the event of your incapacity, whether temporary or permanent. It also sets out your wishes as to various medical treatments that you may wish to have or to be withheld (your Living Will). Imagine being hospitalized and isolated without any family allowed with you. In this raging pandemic, doctors have expressed their despair about being unable to communicate with seriously ill patients as to what their treatment wishes are. An MPOA and Living Will gives your physician and family guidance as to treatment options you would want. They will know who in your family will speak for you, and your family will know how to speak for you.

Durable Power of Attorney

A Medical Power of Attorney authorizes a person to speak for you only as to medical matters in the event of your incapacity. A Durable Power of Attorney (generally referred to as a POA) is the vehicle used to appoint another person to handle your financial affairs. West Virginia has a statutorily approved POA form. While under some circumstances a person may choose to have a presently effective POA, others prefer that it be effective only in the event of their incapacity or incompetency, known as a springing POA. Your appointee, referred to as your attorney-in-fact, will have the power to exercise control over your financial affairs to the extent you specify in the granting document. And if you so direct or authorize them, your attorney-in-fact can operate your business when you are unable. A springing POA becomes effective only upon incapacity but becomes ineffective when you are able to take over your financial and business affairs again.

Will

A will directs how you want your assets transferred when you’ve passed away. If you don’t have a will, then assets are going to transfer under your estate, and your state’s laws of intestate succession will determine how your property is distributed, which may not be in accord with your wishes. Wills do more than just transfer assets though. You can appoint guardians for your children or a testamentary trust for children that is activated on your death.

The laws of the state in which you reside will govern the effectiveness and construction of these types of documents. States have different laws as to when a will or power of attorney is valid and properly executed and how its provisions will be construed so these documents should be prepared under the law of the state in which you reside. When changing your residence, new documents should be prepared. In addition, your estate plan should be reviewed periodically or whenever there is a significant change of circumstance.

Business Assets

Business assets can be transferred upon your death in a few different ways. First, they can be transferred as part of your will. As a sole proprietor, you could direct that those business assets transfer directly to a successor. It may be necessary to empower your estate administrator to operate your business for a limited period of time. Or business interests can be liquidated and the proceeds distributed to your beneficiaries. Another way business assets can be disposed of on your death is by way of the organizational documents that formed the business. For example, articles of organization, shareholder agreements, and buy-sell agreements can provide for the transfer of your business interests at your death in ways that give the corporation, the other shareholders, and your beneficiaries options.

Gifting and planned gifting during your lifetime is a means of transferring assets and business interests so that ownership and control are transferred gradually to successors. While these gifts are made during your lifetime, they should be considered when you are making your estate plan.

Taxation

Federal and State estate and gift taxes can instruct your estate planning. Business interests are included in the value of your estate for tax purposes and can increase the value of your estate beyond what you imagined it might be, especially if your business interests have appreciated as your business has grown.

More information

For more information about estate planning and wills, reach out to Bernstein-Burkley at info@bernsteinlaw.com or call (412) 456-8100.

Why My Law Firm is Pushing for Across-the-Firm ABC Certification by 2025

November 1, 2020

By Kirk Burkley
Managing Partner, Bernstein-Burkley

You have your choice between two doctors for an upcoming procedure. On paper, both are virtually identical in their impressive qualifications; however, one is board-certified while the other is not. Who do you choose?

The board-certified one, right? It feels like a no-brainer.

In 2020, Statista reported that there are 1.33 million lawyers in the United States, and the best way for attorneys to go the extra mile and stand out to clients is to become board-certified in their specialty practices. The benefits are two-fold: The certification provides clients assurance in an attorney’s professional training, and it also provides a certified attorney with a network like no other.

My law firm, Bernstein-Burkley, P.C.—with locations in Pittsburgh, Cleveland, and Wheeling—has more board-certified creditors’ rights and bankruptcy specialists in the Commonwealth of Pennsylvania than any other law firm, which is quite the feat. There are many firms represented, but to be the one with the highest number of specialists is something I’m very proud of.

As President of the American Board of Certification, I know the importance of being ABC certified. And I not only believe that every attorney should strive for ABC certification, but at my firm I have also challenged every Bernstein-Burkley, P.C., attorney to achieve this goal, with the initiative “Path to ABC Certification.”

What is the Path to ABC Certification?

Our goal at Bernstein-Burkley, P.C., is to support every eligible attorney on their path to becoming ABC certified by 2025, a benchmark that accommodates the young attorneys just getting their start in the field. As a team, we want to show commitment to the industry we work in by demonstrating that we’re willing to rise above the rest when proving our talent and value to clients and connections. 

ABC Certification programs consist of three areas, including Business Bankruptcy, Consumer Bankruptcy, and Creditors’ Rights. Certification involves:

  • Having at least five years of law practice (on a full-time basis)
  • Devoted at least 30% of practice to creditors’ rights or bankruptcy-related legal matters during the last 3 years
  • 400 hours of practice time to creditors’ rights or bankruptcy-related legal matters during the last 3 years
  • 60 hours of CLE within 36 months prior to the date of the application
  • Long Form Application that consists of references from 4 attorneys familiar with the applicant’s practice and 5 other attorneys against whom the applicant has handled a matter
  • An 8-hour exam that includes a two-hour multiple choice section, a 1-hour ethics essay exam, and a 3-hour sub-specialty essay exam

We’re already putting in the hours and dedication to meet many of these requirements, which is why we’re willing to go just a little further in illustrating our expertise, with the long form application and eight-hour examination.

Why Is It Important to Be ABC Certified

There are many different reasons why it’s important to be ABC certified. Of course, it’s a wonderful personal goal, but it’s also beneficial to both clients and colleagues.

Exemplifies proficiency and mastery.

For one thing, it gives you a bona fide boost, as you’re able to let the bankruptcy court, clients, and opposing counsel know that you’re well-trained in your practice area. But it’s not just ABC’s clout that helps. Congress recognized the importance of board certification by listing it as one of the factors when it comes to determining the amount of reasonable compensation to be awarded to Chapter 11 professionals under § 330(a) (3) of the Bankruptcy Code.

Allows you to join an association of top-flight practitioners.

After you become certified, you’re unofficially baptized into a networking group of like-minded practitioners. These lawyers are members of interesting committees and task forces, and value continuing education, professionalism, and a clear dedication to personal development in their careers. Since a lawyer often uses referral networks for work, when you become ABC-certified, you join a network of ABC-vetted specialists ideal for client referrals, which includes yourself.

You’re a cut above the rest.

While there are many first-rate lawyers who are not certified ABC attorneys and they flex their ability in other ways, the ABC certification provides an added boost to attorneys who may be going up against exemplary peers when it comes to attracting clients. ABC certification displays a willingness to go beyond the minimum, and this shows clients that ABC attorneys are willing to go beyond for them as well.

More Information

For more information on Bernstein-Burkley’s ABC certification and journey to across-the-firm certification, follow us on this path on social media via Facebook, Twitter, and LinkedIn.

What Business Owners Can Learn From the IRS.gov Closing a Business Page

October 9, 2020

By Salene Mazur Kraemer
Partner, Bernstein-Burkley, P.C.

Suzanne Jett Trowbridge
Of Counsel, Bernstein-Burkley, P.C.

Right now, business owners are struggling with whether they should continue in business or shutter their doors, which we know can be gut-wrenching.

Based on the number of businesses closing due to the pandemic, the IRS has added a closing a business page to its IRS.gov website to help steer small business owners toward what they need to do in order to terminate a business.

The web page provides a variety of useful tax information, including forms, reporting revenue and expenses, and more. It also includes a step-by-step look at the following:

  1. Final tax returns and forms, paying final taxes.
  2. Paying final wages and compensation to employees, including federal tax deposits and employment taxes.
  3. The cancellation of EIN and IRS accounts.
  4. How long to keep your business records.

You can visit the web page here.

The IRS guidance does not address requirements that individual states might have for the formal termination and winding up of a business. In West Virginia, for instance, statutes set forth certain procedures relating to Workers’ Compensation, final wage payments to employees, notices to creditors, and releases by the state tax department among other actions that must be taken.

Bernstein-Burkley, P.C., is experienced and passionate about helping distressed businesses, and can guide them through all possible exit strategies, including but not limited to a liquidation sale of assets, a strategic going concern sale, an assignment for the benefit of creditors, or a Chapter 7 or 11 bankruptcy filing.

More Information

If you have any questions regarding closing your business and exploring options, reach out to Salene Mazur Kraemer at skraemer@bernsteinlaw.com or Suzanne Jett Trowbridge at strowbridge@bernsteinlaw.com at Bernstein-Burkley, P.C., or call (412) 456-8100.

 

Interim Confirmation is Not Final Confirmation for Purposes of the CARES Act

October 2, 2020

By Keri P. Ebeck
Partner, Bernstein-Burkley, P.C.

The Bankruptcy Court for the Western District of Pennsylvania is a conduit jurisdiction and is known for having a local procedure known as “interim confirmation.” This concept is foreign to most other bankruptcy jurisdictions. Typically after a 341 meeting of creditors is held, the standing Chapter 13 Trustee will issue an “interim confirmation order” to allow the Trustee to disburse funds to creditors. This has been the practice for years, and it is not until recently that the Court has made the distinction between interim confirmation and final confirmation. The issue recently has surfaced due to the CARES Act provision allowing for the extension of a 60-month plan to an 84-month plan if the bankruptcy case was confirmed at the time of the enactment of the CARES Act on March 27, 2020. The Court, Trustee, debtors and creditors were grappling with what that meant in conjunction with the local practice of interim confirmation— was that enough under the CARES Act to extend the plan from 60 months to 84 months?

In a recent decision in the case of In Re: David A. Roebuck, WDPA Case No. 19-23044, Judge Gregory L. Taddonio ruled that for purposes of the CARES Act, the local practice of interim confirmation was not confirmation under 11 U.S.C. 1325, and therefore only those cases that had a final confirmation order as of March 27, 2020, were eligible for the extension to 84 months. Judge Taddonio stated that “An Interim confirmation order is not a creature of the Code. Instead, it is a unique local practice employed to provide adequate protection to secured and priority creditors pending ‘final’ plan confirmation.” [1] The Court went on to say that “interim confirmation in this district is simply not confirmation under section 1325…..Not only does the Court not review the plan or make any findings before entering an interim confirmation order; the Trustee concedes that many plans confirmed on an interim basis do not yet satisfy section 1325.” [2]

As of October 1, 2020, Bankruptcy Judge Thomas P. Agresti of the Western District has revised his procedures that interim confirmation orders will no longer apply in his Chapter 13 cases. It has yet to be known if the other bankruptcy judges will follow.

If you are a creditor and would like more information on interim confirmation and how the recent decision and revisions to local procedures may affect your borrowers, please reach out to Bernstein-Burkley, P.C. to discuss. 

Third Circuit Court of Appeals Adopts New Cramdown Test

September 1, 2020

By Sarah E. Wenrich
Bernstein-Burkley, P.C.

In the precedential Third Circuit decision In re Tribune Co., No. 18-2909, 2020 U.S. App. LEXIS 27158 (3d Cir. Aug. 26, 2020), the Third Circuit Court of Appeals adopted a new “cramdown” test to be applied in analyses involving 11 U.S.C. § 1129(b) of the Bankruptcy Code.

The case involved senior noteholders who had pre-bankruptcy subordination agreements which provided that payment to certain other subordinated creditors would be limited until the senior noteholders were paid in full. The senior noteholders argued that § 510(a) of the Bankruptcy Code pertaining to and allowing subordination agreements required that the agreements in question be strictly complied with. The Debtor’s plan of reorganization did not fully enforce the subordination provisions per § 510(a) and determined that the claims of the senior noteholders and those of the “subordinated creditors” were of equal priority. The Bankruptcy Court for the District of Delaware confirmed the plan over the objection of the senior noteholders.

In affirming the decision of the Bankruptcy Court, the Third Circuit Court of Appeals first explained that the plain language of the § 1129(b) and § 510(a) and use of the term “notwithstanding” in § 1129(b) gives courts flexibility to confirm a plan that does not strictly enforce subordination agreements. However, the refusal to strictly enforce subordination agreements must be fair and equitable and must not unfairly discriminate against the dissenting creditor.

In order to determine whether a plan unfairly discriminates against certain creditors, the Third Circuit Court of Appeals adopted what is known as the “rebuttable presumption” test. The court explained that the presumption of unfair discrimination exists where there is:

(1) a dissenting class; (2) another class of the same priority; and (3) a difference in the plan’s treatment of the two classes that results in either (a) a materially lower percentage recovery for the dissenting class (measured in terms of the net present value of all payments), or (b) regardless of percentage recovery, and allocation under the plan of materially greater risk to the dissenting in connection with its proposed distribution. [1]

In re Tribune Co., 2020 U.S. App. LEXIS 27158 at *23 (quoting Bruce A. Markell, A New Perspective on Unfair Discrimination in Chapter 11, 72 Am. Bankr. L.J. 227, 244 (1998)). The Court further explained that this presumption can be overcome where a court finds that

a lower recovery for the dissenting class is consistent with the results that would obtain outside of bankruptcy, or that a greater recovery for the other class is offset by contributions from that class to the reorganization. The presumption of unfairness based on differing risks may be overcome by a showing that the risks are allocated in a manner consistent with the prebankruptcy expectations of the parties.

Id. The relevant perspective to be considered is that of the dissenting class of creditors and not the other classes of creditors that have voted to accept the plan. Id. at *29. In In re Tribune, the pool of senior lenders’ claims was much larger than that of creditors with similar priority ($1.283B as opposed to $105 and $8.8M). By limiting the enforcement of the subordination provisions, the senior lenders received a 33.6% recovery under the plan as opposed to a 34.5% recovery that they would have received had the provisions been strictly enforced. In comparison, the other classes of creditors that had voted to accept the plan were to also receive a 33.6% recovery under the plan as opposed to a 21.9% recovery that would occur had the subordination provision been strictly enforced. The court explained that, for the dissenting class, the 0.9% difference in recovery was only a minimal reduction and was not material such that the plan did not discriminate unfairly. However, it also warned that what constitutes a material difference in recovery “is a distinct and context specific inquiry.” Id. at 30*.

The end goal of a Chapter 11 bankruptcy case is the confirmation of a Chapter 11 plan, and the flexibility provided by § 1129(b) and the “rebuttable presumption” test adopted by the Third Circuit support this goal. 

[1] The Third Circuit Court of Appeals also set forth a more detailed, step-by-step analysis of what a court should look for in determining whether the rebuttable presumption exists. See 2020 U.S. App. LEXIS 27158 at *24-28.

Everything You Need To Know About the Property Tax Assessment Appeal Process

August 4, 2020

By James M. Berent, Esq.
Bernstein-Burkley, P.C.

You may not be thinking about next year’s taxes, having just completed your taxes with the extended COVID-19 deadline this past July.

But it’s actually never too early to start thinking about taxes, especially when it comes to the possibility of lowering your real estate taxes through an assessment appeal. Due to COVID-19, property values may be impacted, with some property owners eligible for a reduced assessment.

But once you reach out to an attorney, what happens during the appeals process? Here’s everything you need to know about property tax assessment appeals.

How does the tax assessment appeal process work?

Each county in Pennsylvania has a specific tax assessment appeal deadline, and most tax appeals will include a first-level administrative hearing. During these hearings, a board of government officials will decide whether an adjustment to the property tax assessment value is necessary, based on evidence presented by an attorney. When a decision is reached, it’s final, unless you file an appeal of that decision to the respective Court of Common Pleas within the appropriate time frame.

When a property owner appeals a decision, they have to provide a certified appraisal report or share economic details about their property or properties, so that the taxing bodies, usually represented by their solicitors, have sufficient information about the property to reach a fair resolution. The taxing bodies need all of the proper information to put into an informed decision. In the majority of instances, the property owner and the taxing bodies are able to reach an agreement as to a fair assessed value.

But what happens if the property owner doesn’t agree to the value and both parties reach an impasse? In this case, the tax assessment appeal will go to a trial or evidentiary hearing where a judge will ultimately decide what the property’s value is based on evidence and testimony.

What establishes a value in a tax assessment appeal?

The property owner trying to adjust the assessed value has to prove that the assessed value needs to be changed. The best evidence as to the current market value of a property is a certified appraisal report. The appraisal report will utilize the following methods of valuation when estimating a value:

  1. Income approach
  2. Sales comparison approach
  3. Cost approach

Income approach

Most commercial properties will use the income approach, which looks at property as an investment. With this methodology, property owners will examine elements like income, costs, occupancy, and the risk of investment.

Sales comparison approach

This method compares the property in question to recent sales of other properties with similar features and characteristics and ultimately the effect all of the features have on the overall value of the property.

Cost approach

How much would it cost to build a duplicate piece of property? That’s what this method looks at, including the cost of land, cost of construction, and depreciation.

Contact Bernstein-Burkley, P.C.

Thinking of seeking a property tax appeal? Our Real Estate Law team can help. Reach out to Bernstein-Burkley, P.C., at (412) 456-8100 or email James Berent at jberent@bernsteinlaw.com

The Best Practices for Avoiding COVID Litigation at Your Company

August 3, 2020

By Trisha R. Hudkins, Associate
Bernstein-Burkley, P.C.

Across the country, there have been many types of lawsuits filed related to COVID-19 health risks and employers’ reactions to the pandemic. These suits affect a wealth of industries, but more often than not, they hit sectors like healthcare, manufacturers, and retail.

If you are a business owner with plans to transition back into the workplace, there are some things you need to consider when it comes to side-stepping a lawsuit.

Stay up-to-date on information.

As an employer, you must base your decisions on reliable information and continue to monitor the changing situation with respect to the workplace. You should begin by following the guidelines from the leading health authorities, including CDC Guidance for Businesses and Employers; Pandemic Preparedness in the Workplace and ADA; and OSHA’s COVID-19 Overview and Resources for Preventing Workplace Exposure.

Prepare a back-to-work plan.

Survey your employees to get a sense of their feelings on returning to work and also prepare yourself for the possibility that some employees will continue to work from home. For people who do return, strategize about how social distancing will work, hand-sanitizing station locations, and what kind of preventative barriers will be put in the office. Many of the suits that are being filed right now have to do with employers violating workplace safety laws and protocols, with claims involving failure for employers to provide personal protective equipment and to carry out policies like temperature checks when employees arrive for work.

Create a checklist of things that need to be addressed.

Implementing the following procedures would be prudent:

  • Disseminate current resources and information to workforce;
  • Avoid workplace discrimination or harassment based on cultural biases or racial perceptions that particular workers are more likely to be exposed to or infected with COVID-19;
  • Establish leave administration and accommodation guidelines;
  • Require employees to take preventative measures;
  • Take the most conservative approach in returning work—assess ongoing teleworking as appropriate;
  • Establish travel guidelines—consider whether to restrict business travel into high-risk areas defined by the CDC or impose broader restrictions;
  • Establish protocol for exposure and sickness.

Become familiar with recent legislation put into place.

Under FFCRA (Families First Coronavirus Response Act), coverage includes certain public employers and private employers with fewer than 500 employees. Most government employees are not covered by this act because they are covered by the Title II of the Family and Medical Leave Act, which was not amended by FFCRA. However, federal employees covered by Title II of the Family and Medical Leave Act are covered by the paid sick leave provision.

The FFCRA provides eligibility for employees that includes:

  • Two weeks (up to 80 hours) of paid sick leave if the employee is unable to work because they are quarantined and/or are experiencing COVID-19 symptoms or are waiting on a diagnosis;
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because an employee has to take care of an individual subject to quarantine or care for a child under the age of 18 whose school or child care provider is closed or unavailable due to COVID-19 or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor;
  • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay if an employee (employed for at least 30 calendar days) is unable to work because a child whose school or child care provider is closed related to reasons involving COVID-19
  • Right now, many lawsuits against businesses are dealing with leave claims, with employees being denied sick leave or medical leave related to the pandemic.

Contact Bernstein-Burkley, P.C.

Bernstein-Burkley, P.C., recognizes the impact litigation can have on a business. Our litigators are trial-ready but frequently resolve commercial litigation in lieu of trial. To reach out to our litigation team, call (412) 456-8100 or contact us at (412) 456-8110.

What Lawyers and Everyone Can Do To Be More Personable in a COVID-19 World

July 14, 2020

Keri Ebeck, Esq.
Partner at Bernstein-Burkley, P.C.

COVID-19 has obviously affected everything and everyone, including how we work and communicate with one another. While many of us are continuing to work from home or practice physical distancing guidelines, this makes it more challenging to network and stay in touch with clients and prospective clients. Here are a few things we can do to go the extra mile for clients and colleagues when we can’t go but a few feet from our computers.

Make the time to call. Maybe even schedule a weekly call.

And while it’s important to address the business you want to address, make sure you check in with the person you’re calling, with a simple “How are you doing?”

Zooms can be exhausting, so limit their use.

Studies have been conducted that Zoom calls can be mentally exhausting because you have to make more of an emotional effort to make yourself look interested in the conversation and there’s an intense focus on eye contact and attention on you. Even the fact that you have to look at yourself can be tasking.

Because of this, while Zoom calls and FaceTime are great ways to stay in contact, ask for people’s preference, especially if you know a call might go longer than 10 minutes.

It’s okay to be casual.

You might be calling a client while wearing something less than a suit or business attire, and while it may feel unprofessional, everyone is in a similar boat right now. Many of us are working from home and adjusting to new norms. However, the care and attention to making the call and checking in will be what the client or contact remembers, not what you’re wearing (especially if they can’t see you on the other end).

Separate work life from social life – for yourself and others.

Because there’s not a lot to do right now, or places to go, you may have an inkling to call a client or contact after work hours. Obviously, there’s a strong chance they’re not out to dinner, taking kids to dance class, or attending a sporting event. However, working from home, or having a schedule that’s less than normal during COVID times, means it’s more important to separate work life from social life. Otherwise, when you’re stuck at home, it may feel like all you do is work.

Residential Eviction Moratorium Expanded to End of August; CARES Relief for Renters and Homeowners Having Financial Difficulty

July 10, 2020

By Salene Mazur Kraemer, Esq.
Partner, Bernstein-Burkley

One of the major issues resulting from the COVID-19 pandemic has been what landlords and property owners should do about evictions and foreclosures for occupants having difficulty making payments and what kind of accommodations should be made.

In Pennsylvania, Governor Tom Wolf extended the statewide moratorium on foreclosures and evictions to August 31, providing renters with what he describes as more breathing room. Originally, the moratorium was set to expire on Friday, July 10.

According to Gov. Wolf’s press release, he says: “I am taking this action to help families know they will have a roof over their heads and a place to live while all of us fight the COVID-19 pandemic. It takes one more burden off of people who are struggling and ensures that families can remain in their homes so they can protect their health and well-being.”

Because Pennsylvania has seen an increase in COVID cases recently, especially in Allegheny County, Wolf and his administration also justified extending the moratorium so people could stay in their homes and limit the spread of the virus.

However, while most tenants and dwellers are covered for nonpayment of rent or overstaying a lease under the moratorium, one thing that it does not cover is if the tenant damages property or breaks the law or lease in some manner.

The Commonwealth of Pennsylvania is utilizing $175 million of the relief money it received to assist tenants and homeowners with payments, which includes a rental relief program that offers $750 per month to renters and homeowners having financial difficulty. Applications for this CARES assistance for renters and homeowners became available as of June 29.

The revised executive order does not apply to landlords who take part in the state’s rent relief program, since the program already has protection for renters. The order also doesn’t apply to renters living in a building that’s covered by a federal moratorium on evictions and foreclosures.

Note: The CARES funding for renters must be completely distributed by November 30, 2020.

To access the CARES Rent Relief Program application, click here.

For more information about renter rights or landlord rights, please reach out to Bernstein-Burkley at info@bernsteinlaw.com or call (412) 456-8100.

COVID-19 Relief Statewide Small Business Assistance Is Live

July 8, 2020

By Salene Mazur Kraemer, Esq.
Partner, Bernstein-Burkley

James M. Berent, Esq.
Bernstein-Burkley

The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program aims to provide grants of up to $50,000 to small businesses that have been affected by the pandemic. The grants will be allocated through a series of application windows and are not on a first-come, first-served basis, like the PPP (Paycheck Protection Program) loans were. Ideally this program works for businesses who make less than $1 million and have fewer than 25 full-time employees.

Note: In Pennsylvania, you must work with one of the Commonwealth’s Community Development Financial Institutions (CDFI) to do the application.

How can the funding be used?

The funding will be distributed three ways, through:

  • Main Street Business Revitalization Program ($100 million)
  • Historically Disadvantaged Business Revitalization Program ($100 million)
  • Loan payment deferment and loss reserve ($25 million)

In the form of:

  • Grants to cover operating expenses for the span of the shutdown, help with reopening, and technical assistance in stabilizing or relaunching their business
  • Debt payment relief for CDFI Pennsylvania borrowers
  • Loan loss reserves for CDFIs

With 50% of the grants going to Historically Disadvantaged businesses, who are at least 51% owned and operated by persons that are:

  • Black
  • Hispanic
  • Native American
  • Asian American
  • Pacific Islander

With special consideration given to:

  • Women-owned businesses
  • Communities targeted for business investment by state government programs like Main Street and Elm Street
  • Rural communities

Eligibility

  • At least 51% of business revenue must be generated in Pennsylvania
  • Annual revenue of at least $1 million or less prior to COVID-19
  • Have 25 or fewer employees
  • Was in operation on February 15, 2020 and paid income taxes to state/federal government
  • Has had business severely impacted by pandemic
  • Must use grant to cover COVID-19-related costs
  • Cannot receive another grant between June 1, 2020 and December 31, 2020.

Items Needed to Apply

Gather the following items to prepare your application:

  • Photo ID or passport
  • Recent federal tax return (2019 or 2018), revenue from March 1 to May 31 for 2019 and 2020, (for startups) Internal Profit & Loss Statement January 1 to February 15, 2020
  • Proof of Business Registration with PA Department of State, including Articles of Incorporation, Fictitious Name Registration/”Doing Business As” or Business License
  • Bank account information

CDFIs Serving Pittsburgh

These are the CDFIs serving the Pittsburgh area:

Contact Bernstein-Burkley, P.C.

The Bernstein-Burkley team is fully equipped to discuss your options and the application process regarding CDFI. For more information, call us at (412) 456-8100 or email us at info@bernsteinlaw.com. 

 

 

August 2020: Consult the Expert featuring Harry Greenfield

July 1, 2020

Q: When it comes to the economic strain caused by COVID-19, what are some basic things I should know about business bankruptcy?

Advice: The first thing you should know is that there are many options available for a company that has economic issues as a result of the COVID-19 pandemic. There are multiple loan programs through the federal government; there may be some rent relief that can be obtained as a result of the terms of your lease; and there may also be settlements and forbearances that can be received from your vendors and landlords.

Depending on the nature of your business, it is always preferable to avoid bankruptcy. However, if bankruptcy is your best alternative, bankruptcy attorneys can use their extensive experience to help businesses navigate the issues that are raised in a bankruptcy. Depending on the size of your business, Congress has made some changes to the Small Business Bankruptcy rules, which could be beneficial to you. When properly planned and implemented, bankruptcy can be an effective way to help a business overcome financial difficulties.

Harry W. Greenfield
(216) 294-4950
hgreenfield@bernsteinlaw.com