COVID-19 News Round-up for October 27th

Budget, Policy & Stimulus News 

Floodgates Open on PPP Loan Forgiveness 

The Small Business Administration is facing a mountain of Paycheck Protection Program loan documents and forgiveness applications as the “floodgates” open on small businesses asking for their loans to be forgiven. The renewed forgiveness push comes after the SBA released a simplified forgiveness form for businesses with loans under $50K. (Source: Phoenix Business Journal) 

Economic News 

Amendments Allow for Clarification on Existing Leases 

For the last six or seven months, lease modifications and amendments have been abundant. While many of the modifications and amendments have been pandemic related and frustrating for the parties, the good news is that like lease renewals or assignments, modifications and amendments provide a chance for landlords to correct any mistakes made in the original lease. It is also a good opportunity to address any changes that may have occurred since the original lease was executed. Cleaning up earlier mistakes will pay dividends if litigation ever ensues over the lease or its terms. (Source: AZ Big Media) 

Headwinds Coming for Class B and C Apartments 

While the apartment sector has withstood the COVID-19 pandemic reasonably well due to federal stimulus payments and expanded unemployment benefits, problems could be on the horizon for multifamily assets. Fitch says US apartment REITs with high exposure to class B and C assets and properties in gateway cities are vulnerable to the economic fallout of the coronavirus pandemic due to the risk of urban flight and high job losses among lower-income households. (Source: GlobeSt.com)