Business • Real Estate

Real Estate Outlook – An update on Financing Options Amid Coronavirus

Are you struggling to make mortgage payments with any of your real estate entities? Tenants missing payments and construction progress halted? Many right now are grappling with tough decisions – should they layoff their loyal workforce or can they hold on longer?

If you’re in this boat one of your first options is forbearance. Call your lender ASAP and discuss your options. If you’re loan is federally backed, you have the right to request forbearance in 30 day installments for up to 90 days thanks to the CAREs Act. If it’s not federally backed, call your lender to discuss your options. Non-Federally backed lenders are facing the inevitable reality that many of their borrowers are now facing hardship. Many in the industry believe that most negotiations with these lenders could be successful because the banks don’t want to take over or foreclose on assets and would rather work with you to avoid a wave of foreclosures. You may also want to consider requesting a loosening of loan covenants from your lender to avoid any covenant triggers and compliance issues. Forecast out your monthly finances to anticipate these issues before they happen.

Your other options involve SBA loans and grants including the EIDL loan and Paycheck Protection Program, but the resources are running out quickly. Data from the Paycheck Protection Program – which is no longer accepting applications due to the lack in available appropriations funding – shows that real estate and construction has made up a larger share of loans approved through April 16th than any other sector.

Source: SBA.gov

If you haven’t already applied for one of these loans, additional funding may be coming towards mid to late-week of April 20th. In the meantime, consider drawing down on any existing lines of credit and explore new loans outside of these programs. The Main Street Lending Program was announced by the Federal Reserve on April 9th and was designed to add liquidity to our markets. The program is designed to purchase 95% of new unsecured loans made by certain banks to small and medium sized businesses for four-year terms and is expected to begin late April. The Program will operate through two facilities: the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF). Each program is for employers with less than 10,000 employees and has a minimum loan amount of $1 million.

Evaluating your options is key, as is having a trusted financial partner to help you navigate these times. At Atlantic Wealth Partners, we can navigate this with and for you so that you can focus on your business.

Kayle Leibold Director of Tax Planning & Accounting

As Atlantic Wealth Partner’s resident CPA, I’m focused on proactive income and estate tax planning and compliance, identifying little-known tax savings opportunities and using creative strategies to help clients retain more of the wealth they create. All of this is done in tandem with our in-house financial planners and other professionals on the team – attorneys, CPA’s and insurance advisors, in order to provide a wholistic approach to managing the complexities of your family’s financial future – as if it were my own.

My experience as an auditor in public accounting showed me just how many businesses struggle with their financial accounting and tax planning. I’ve seen hundreds of companies books and I thrive on opening a new set of financials to deliver fresh insights to owners and shareholders. No matter what your business or personal tax and accounting situation may be, we can help you cut through the data to make strategic, informed decisions that are best for your business and family.

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