The Coronavirus Aid, Relief, and Economic Security, or “CARES Act”—the third emergency bill that Congress has prepared in response to the Coronavirus (COVID-19) pandemic—was signed into law Friday, March 27, 2020. BCLP lawyers have analyzed the law, including its provision for a Paycheck Protection Program (PPP), and have been advising clients on what impact it may have on their businesses and whether those businesses may be eligible for assistance.

As the coronavirus and COVID-19 crisis continues to develop in the United States, Freddie Mac Multifamily (“Freddie Mac”) and Fannie Mae have responded quickly to assist impacted borrowers, properties and their tenants.  Both government agencies have a strong history of providing forbearance relief to their borrowers during periods of crisis and adopted similar programs immediately after Hurricane Harvey, Florence and Michael.  Unlike the Hurricane Disaster Relief programs, the COVID-19 Relief programs are not restricted by FEMA designated affected counties, but rather are available to all borrowers who can demonstrate hardship as a consequence of the COVID-19 pandemic.  This relief furthers the growing trend of governmental action providing temporary protections of tenancies at the national, state and local level.    Freddie Mac and Fannie Mae have implemented programs to offer forbearance for any loans secured by real property affected by the economic and regulatory impacts of COVID-19.  Generally, a loan must be otherwise in good standing to be eligible for such relief.  If forbearance is granted, certain monthly payment obligations will be postponed and the lender will not exercise rights and remedies in connection with any missed payments due to COVID-19 during the forbearance period.  Under the forbearance program, a borrower must not evict a tenant as a result of such tenant’s hardship resulting from the COVID-19 pandemic. We anticipate that Freddie Mac and Fannie Mae, directly and through their primary and master servicers, will receive numerous relief requests which will be difficult to deny with a reasonable demonstration of hardship during this emergency.