At this point, we all know too well that Covid-19 has dealt a strong blow to the economy.  For commercial real estate owners, this means many are faced with the prospect of default on mortgages secured by their properties. This article will explore two programs that could help real estate owners and borrowers as they grapple with the financial effects of Covid-19.

Many are aware that, in response to the ongoing economic fall-out from the Covid-19 pandemic, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  The CARES Act authorized more than $2 trillion to create numerous programs, ranging from immediate cash relief for individual citizens to loan programs for small business to various types of economic relief for impacted businesses and industries.

The most familiar program created under the CARES Act is the Payroll Protection Program (PPP).  The PPP provides loans to small businesses so they can keep their workforces employed despite any financial hardship resulting from the Covid-19 pandemic. A key feature of the PPP loans is that they may be forgiven under certain circumstances. While this is an extremely important program for the well-being of our economy, the PPP does not squarely address the specific needs of the commercial real estate sector.