Businesses across the country are already feeling the impact of
the coronavirus, and with many communities already implementing
quarantines and lockdowns, things are only expected to get worse.
While many lenders have been more than willing to work with their
customers through deferred payment plans or other accommodations,
defaults on loans will be an inevitable reality for many
businesses. Even if a business can continue to make its scheduled
payments, it may violate a financial covenant or suffer a material
adverse change, thereby triggering a default event. While certain
relief programs are being put into place to help consumers deal
with these issues, many businesses will be forced to work through
the problems directly with their lenders.
