Dewey Property Advisors
COVID-19 News & Resources
COVID-19 has caused us to navigate uncharted territories. We are doing our best to stay on top of news and practices that will lead us back to business as normal. Our job is to support our Landlords, Tenants, and communities- at-large. In this effort, let us be your guide. If you encounter a unique situation, which brings up a question or concern, we would like to help you resolve it. So please reach out, as we are here 24/7 to help you!
We have compiled a list of resources that might help at this stage of the process. While this landscape is ever changing – we are certain we will all make it to the other side, together, and prosper soon.
APRIL 3RD, 2020 – TENANT SURVIVAL ROAD MAP
Tenants need to be proactive in forming their preparedness plan, protecting their cash on hand, reviewing their lease and communicating with their Landlord. We have our compiled a list of tips for Tenants below:
- LEASE REVIEW
- Rent – What makes up this amount? Pass-through expenses?
- Lease Expiration and Renewal Options – Term expiration? Renewal notice date?
- Default – What constitutes as default of the lease?
- Guarantees – Who outside of your business is liable for your lease?
- Security Deposits – How much is Landlord holding?
- Insurance – What coverage are you required to maintain?
- PREP FOR LANDLORD MEETING
- Discuss the possibility of a claim under any insurance policy you carry.
- Evaluate all available government relief programs – Stimulus, Tax Relief, Etc.
- MEET WITH LANDLORD
- Let your Landlord know your business has been impacted
- Rent Solution
- Request a reduction in rent for a set period of time. This could be on a month-to-month basis, a deferral meaning it would be repaid at a later date, or a conditional basis meaning it will be forgiven so long as you meet some future condition (exercising an option early). This might come with stipulations that you will need to be prepared for : percentage rent, adding interest to deferred payments, committing to a longer term, or adding a co-signer to your lease.
- Ask you Landlord to apply your Security Deposit to your current rent obligations
- Assignment – Will your Landlord allow you to sublet or assign your lease?
- Lease Buyout – Would your Landlord agree to terminate your lease in exchange for a fee. Hopefully this is a last resort.
Know that for most Landlords losing tenants is an unwanted, disruptive, and costly – your success is their success. Resources and partnerships are paramount. Any communication is good communication between Landlords, Tenants, Lenders and Insurers.
MARCH 26TH, 2020 – COVID-19 KEY INFORMATION FOR YOUR BUSINESS
COVID-19 Aid, Relief and Economic Security Act provides for the expansion of the SBA 7(a) loan program between February 15, 2020 and June 30, 2020 with possible effective conversion to grant funding for all or a portion of the loan through forgiveness of debt provisions. CARES ACT LINK
KEY RESOURCE LINKS
- Small Business Association Disaster Assistance Loans: Application (applicable if your area declared eligible for disaster loan assistance)
- Small Business Association Local Assistance Directory
- Small Business Association Funding and Lender Match programs
- Federal Disaster Unemployment Assistance
- Loan information for cooperatives from NCBA CLUSA
- CDC Interim Guidance for Businesses and Employers
- Tax deferral for individual and non-corporate tax filers from April 15 to July 15
MARCH 19TH, 2020 – INFORMATION FOR BORROWERS ABOUT SBA DISASTER LOANS
Has your small business been impacted by Covid-19? Here are some next steps:
- Disaster loans are available directly from the SBA with low interest rates. | Read the press release here.
- Is your business located in a declared disaster area? | Check by visiting sba.gov.
- If you do not see your state/county on the list, it may still be in process for approval; continue to check back regularly.
- Visit here to review information on how to apply | Ready to apply? Click here.
- The SBA has plenty of resources for small businesses | Visit here for more information.
Be sure to check out your state’s website for additional ways that your state may be able to help.