Loan Modifications and COVID-19
Sunday, an interagency statement was released by several government agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, to address loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The goal of this statement is to make it easier for financial institutions to work with companies that are being negatively impacted by the pandemic and the efforts being enacted to slow the spread of the disease. To see the full release, please visit: https://www.fdic.gov/news/news/press/2020/pr20038a.pdf
If you are working in a situation that will be negatively affected and feel that there may be issues with meeting obligated payments or covenants, including submission of financial statements, you should be proactive in reaching out to your financial institutions to get ahead of these issues rather than trying to play catch up after the fact.
Stay safe, be careful, and take care of each other as we all deal with the unprecedented issues created by this pandemic.