"[T]here may be a negative cascade effect in benefit plan administration if the COVID-19 effect is materially severe following the release of the initial calendar-year-end financial statements. The greatest area of concern is the company stock's value following a consideration of the effect of COVID-19.... The cascade effect may lead to other areas of concern such as the violation of loan covenants. This is a significant risk in newly established ESOP companies that are heavily leveraged. There may even be a going concern issue if, in management's opinion, there is substantial doubt about the company's ability to remain viable in the upcoming year."

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