If you are like the MoneyThumb team, you are pretty tired of hearing about the coronavirus, or Covid-19, as scientists call it. We have all learned far more than we ever wanted to know about viruses and catchphrases, such as 'flattening the curve' and 'social distancing.' But we have one more important blog post to write at the Rules of Thumb blog concerning Covid-19, and this one is for private lenders.
In previous posts, we discussed financial resources for individuals during these trying times and also pandemic resources for accountants, so we must be fair and share resources for another important customer of ours, and that is the private lender. Hopefully, we can move on to our regularly scheduled program of informing our current users and potential users of our PDF financial file converters on topics of interest without too much further discussion of viruses and pandemics. That, of course, depends a lot on the virus, but as the old saying goes, "God willing and the creek don't rise," we have been through the worst of it.
The Covid-19 resources we discovered for private lenders come from the website of the American Association of Private Lenders. They have created a page specially designed for private lenders seeking Covid-19 response resources.
We are sure many of you as private lenders are receiving a lot of payment deferral requests from your borrowers due to their financial situations as a result of the pandemic. The following video, AAPL’s Emergency COVID-19 Virtual Meeting on Forbearance Best Practices, is a great help with that issue. Here are the takeaways from the video:
- Understand how to manage the flood of deferral requests.
- Understand what your legal rights are as private lenders versus regulated consumer lenders.
- Receive best practices on how to manage requests and understand when you should defer payments.
- Understand how to communicate your decisions and strategy to your investors.
If watching videos is not your thing, here is a PDF covering the contents of the video. The page of Covid-19 response resources from the American Association of Private Lenders, (AAPL), is chocked full of other information you may find helpful as a private lender, such as sections on the market outlook, planning, and strategy, operations, and advice on distressed assets.
There are also many articles on the AAPL page of Covid-19 response resources that will be of great interest to you as a private lender. There is also a virtual event that you may want to attend provided by the AAPL with a link to sign up:
Qualified Opportunity Zones - COVID-19 Issues, New Regulations, and Extensions--This free webinar is being held on Thursday, May 14, 2020, at 11 am Pacific Time.
Description: The COVID-19 outbreak has caused the United States economy to tank. The unemployment rate is at an extremely high level, and uncertainties abound. As the United States navigates through reopening businesses while balancing out public health & safety, Qualified Opportunity Funds should be one of the most instrumental investment vehicles in deploying money to the severely and economically distressed areas. To account for timing issues with respect to QOZ regulations, the IRS has adjusted and/or extended timelines pertaining to QOFs, including substantial improvement tests, among others. But is it enough?
The Rules of Thumb blog from MoneyThumb hopes the above Covid-19 response resources will help you as a private lender. We would really appreciate it if you would share this post on your social media page so that your peers in lending can also benefit from the information contained herein.