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Five Things Small Business Owners Should be Doing During Covid-19

It goes without saying that every member of the community has had his or her life turned upside down over the past weeks. For small business owners, the challenges can be particularly acute and severe. Here are five things small business owners should consider doing.

First, get informed and stay informed.

In situations such as this, rumors abound. Identify reliable sources of information and consult them frequently. The situation is very fluid. As everyone now knows, the Governor has ordered the close of all non-life sustaining businesses. Are you one? Are you not sure? Are you in need of a waiver from enforcement? Make sure you know where your business falls and stay up to date on enforcement and waivers. The Governor has also issued a stay-at-home order. Familiarize yourself with the order. Know how the order might affect your employees and anticipate how it might affect your business.

Second, communicate clearly and frequently with your employees.

Be ready to field questions and allay fears. Uncertainty abounds. If you have to furlough employees, be prepared with current information on changes to unemployment compensation rules and payment amounts. Be prepared to respond to questions about health insurance and other benefits. Contact your insurance agent and benefits specialists to keep abreast of changes being considered and implemented.

Third, visit contractual relationships with vendors and customers and develop a plan for the immediate future.

Prioritize activities and obligations. For example, are there critical vendors that require special attention? Are there contractual obligations where performance might be temporarily excused due to force majeure?  Look not only at your rights and obligations but also those of the other party. Remember, your first priority is to survive the crisis. Longer term plans will have to take a back seat.

Fourth, be proactive with your lenders and creditors.

Revenue and cash flow will be interrupted. Get ahead of the curve. If you can see the need to ask your lender to defer payment, your landlord to defer rent, or you need to seek longer payment terms from creditors, don’t be afraid to start the discussion. It will only be a matter of time until your customers begin asking the same of you. Try to stay ahead of the curve. Anticipate and deal with situations before they become emergencies if at all possible.

Finally, understand that you are not in this alone.

Many people at the federal, state and local levels are working very hard to develop loan and grant programs to help provide temporary liquidity on favorable terms.  Pennsylvania and Delaware have been declared economic disaster areas, allowing businesses in those locations to qualify for SBA Economic Injury Disaster Loans. Most recently, the SBA has begun accepting applications for the Paycheck Protection Program. Other programs are being developed as quickly as possible. Continuously investigate these alternatives as they are constantly evolving.

We are truly in uncharted waters.  We don’t know when this will end, we do know that it will end. Hopefully, the suggestions above will help you navigate the days and weeks ahead.

If you are a small business owner who needs assistance, Lamb McErlane PC can help. Contact us at 610-430-8000.

Roger Huggins is a partner at lamb McErlane PC. He practices in the areas of Commercial and Real Estate Transactions, Real Estate and Equipment Leasing, Business Law, Finance, Banking and Contracts. His clients include individuals and businesses, ranging from small local businesses to publicly traded corporations, lending institutions and public and private non-profit institutions, including public and private schools and school districts. rhuggins@lambmcerlane.com. 610-701-3276.

Read the article also published in Vista.Today & the Daily Local News.