Webinar report: GTM Global – US Legal & Economic Intervention – 8 April 2020
TABS Webinar Report
GTM Global held a webinar on US Legal & Economic Intervention
8 April 2020
– Mark Stimpfig- Co- Founder at Go to Market Global
– Thomas Thorelli- Partner/Owner at Thorelli & Associates
– Antoine Guillaud- Founding Partner at International Attest Solutions LLC CPA
US Legal and Economic Intervention on International Trade in North America
US Employee Management
Unemployment insurance claims reported for the week ending March 14th showed a sizable spike, but the true contraction likely started the following week (the week ending March 21st). It appears that millions of Americans have already lost their jobs, likely at a pace that exceeds job losses in the worst weeks of the Great Recession. In order to stop the raise in the rate of unemployed people, the U.S. Small Business Administration launched the Paycheck Protection Program, as a consequence of the Coronavirus Aid, Relief and Economic Security Act (CARES). Small businesses affected by the COVID-19 pandemic could apply for forgivable loans designed to meet payroll and day-to-day operating expenses.
The maximum loan amount is $10 million, with a fixed 1% interest rate and maturity of two years.
The Coronavirus Aid, Relief, Economic Security Act provides more than $2 trillion to battle COVID.19 and its economics effects, including immediate cash relief for individual citizens, loan programs for small business, support for hospitals and other medical providers. It will help other various types of economic relief for impacted businesses and industries. Payments are of up to 1200$ (2400$ for MFJ), increased by 500$ per qualifying child. This amount starts chasing out at $75000 of income and, anyone making more than $99000 or $198000 for married couples filing jointly, you will not be eligible. The money will be emailed or directed deposited in a matter of weeks.
Force Majeure and Related Contractual Obligations
Force majeure is a contractual defense that allows a party to suspend or discontinue performance of its contractual obligations under specific circumstances. It may also operate to limit a contract party’s liability. What constitutes a force majeure event is determined on a case-by-case basis and depends upon the terms of the relevant contract, applicable law and other relevant facts. Many force majeure provisions include a list of specific events that are not “reasonably foreseeable” and that are also beyond the parties’ control. A global pandemic such as COVID-19 (or its downstream effects and consequences) will likely qualify as a force majeure event if the provision specifically includes references to a “pandemic,” “epidemic” and/or “disease.”
On March 13, it was announced that all travel from Europe to the United States will be suspended for 30 days, in an effort to limit the spread of the coronavirus (COVID-19) on American soil. The measure is aimed at all foreigners who have in one or more of the 26 Schengen countries in the last two weeks; this measure was now extends to the United Kingdom and Ireland. Flights from Europe will be able to follow operating in a limited number of American airports. “ My guess is that The US is going to make a number of exceptions in order to allow people to visit the country, but it’s impossible to predict the spreading of the virus” , Thomas Thorelli said.