We recently discussed the importance of diligence when acquiring distressed commercial mortgage loans, providing a diligence checklist for the process. Given that any foreclosing mezzanine lender may step “into ownership” if it forecloses upon its mezzanine loan, perhaps even greater care should be exercised when considering the purchase of a distressed real estate mezzanine loan. As with a mortgage loan, diligence is key!
The CARES Act provides $350 billion for small business Paycheck Protection Loans and an additional $10 billion for the existing Economic Injury Disaster Loan program. Colleague David Miller describes the new Paycheck Protection Loan Program and the existing Economic Injury Disaster Loan Program below. These are complex programs, with regulations still being developed by the Small Business Administration.