Corona Virus Business Closings are Expected to take over One Trillion Dollars Out of the Global Economy

 

I doubt that there exists inside any lease, loan agreement or any other contract to pay money or provide any good or service a provision that allocates to one party or another the risk of suffering the kind of financial losses inflicted by a global pandemic.  No amount of foresight or due care could have avoided this situation.  No one could have imagined that millions of businesses would be forced to close their stores and turn away customers and income for an extended period of time to help fight against the spread of this virus.   The ripple effect can be felt by everyone.  Estimates are that over one trillion dollars of spending worldwide could be lost.

This is Not the Time for Creditors to Try to Squeeze Blood from a Stone

 

Massive loan and leasehold defaults and bankruptcies are sure to follow unless creditors are willing to offer at least some short-term relief to those tenants and borrowers most hardest hit by the business closures.  It will only make a terrible situation much worse for all if lenders and landlords turn a deaf ear to their tenants and borrowers and are unwilling to exercise restraint and flexibility in response to missed or late payments and requests for some kind of forbearance or other relief.  This is not the time to race to the courthouse to sue, evict or otherwise try to squeeze blood from a stone. 

Introducing: Corona Virus Small Business Mediation Program

For a special discounted rate, I am offering to mediate confidential debtor/creditor discussions to help those businesses hardest hit by the closures resulting from the corona virus pandemic.  These are confidential, non-adversarial meetings.  Attorneys are not required.  During these mediations, businesses can meet and confer with their landlords, owners and lenders directly to go over their hardships and determine what assistance is needed and available to help everyone get though this crisis.  Working together, we can all put our heads together to formulate workable short-term forbearances or other modifications to leases and loan agreements to bridge liquidity gaps and other financial hardships.

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