Skip to Content Top
Small Business Debt Concerns and Merchant Cash Advance Threats As A Result of The COVID-19 Shutdown Serving Families Throughout Massachusetts and Connecticut

Please see our more recent blog post below, related to recent developments regarding Merchant Cash Advance companies  
The Federal Trade Commission Targets MCA Lender For Deceptive Acts and Unauthorized Withdrawals - August 22, 2020

Now that we are entering week number five of the "lockdown", there is a tremendous strain being put upon the businesses of this country. Especially hard hit are small businesses that make up the lifeblood of the economy.

Restaurants, hair salons and barbershops, nail salons, gyms, and every other small business has been devastated by the shutdown and required "social distancing".

There is talk of "restarting the economy," and there is also other federal relief such as The Paycheck Protection Program ("PPP"). We truly hope that these governmental efforts will extricate those affected by the shutdown under this human tragedy. However, there are also competing health concerns being expressed by health officials against doing so. So, it remains unclear as to whether there will be continued required restrictions that may continue to severely impact your business for the foreseeable future.

Thankfully there was a revision to Chapter 11 Bankruptcy Code through the enactment of Subchapter V, that went into effect in February 2020 that now makes confirmation of a plan of reorganization much more likely to succeed. This Subchapter also streamlines the business bankruptcy process and also reduces Trustee fees as well. This Subchapter also eliminates the requirement to have a "creditors committee". The result ist hat Subchapter V of Chapter 11 more closely resembles a Chapter 13 plan of reorganization, where debts are paid off over a 3-5 year time span

Many small businesses have also taken out Merchant Cash Advances ("MCA"), and/or high-interest business loans that are now falling behind due to the economic shutdown, please see our Merchant Cash advance Page and our related blog posts on this subject

​​​​​​We are one of the few, if not only, law firms licensed in Massachusetts and Connecticut that have experience defending MCA's, we are uniquely experienced in the nuanced area of defending Merchant Cash Advance threats and/or lawsuits. Our goal is to negotiate a settlement for a fraction of the total outstanding amount owed. We have successfully negotiated many such reduced settlements on behalf of our clients. This has also avoided threats of lawsuits to be brought against the business and owner under the personal guarantee. This also applies to high-interest small business "loans" which we have successfully negotiated, such as those offered by FORA Financial, Pay Pal/Loanbuilder, OnDeck, & others.

If you are facing small business debt concerns, please contact us to discuss your options

Please stay safe

Share To: