Month: April 2020

In Part 3 of this 4-part series, Chris J. Murphy, Esq. and Roosevelt J. Donat, Esq. answer questions related to navigating New Jersey’s land use process during the COVID-19 crisis. As part of the Land Use, Zoning and Redevelopment practice group at Murphy Schiller & Wilkes LLP (MSW), Chris and Roosevelt represent a wide-range of clients in connection with securing land use and other development approvals throughout New Jersey.

Q1: What effect has the COVID-19 crisis had on the land use entitlement process in New Jersey?

CM: Over the last seven weeks, the land use entitlement process in New Jersey has rapidly transformed. At first, municipalities almost universally stopped cold, and cancelled scheduled planning and zoning board meetings indefinitely. At that time, there was no telling when and how municipalities would handle pending applications going forward. As is generally the case in New Jersey, there tends to be a lack of uniformity, with 565 municipalities developing independent processes. In these uncertain times, we found that our relationships with planning departments and staff members throughout the State proved critical in obtaining real-time information and guidance on how municipalities planned to adapt to COVID-19 related interruptions moving forward. Based on guidance from the Department of Community Affairs (DCA), released in April 2020, a significant number of municipalities have started transitioning to virtual meetings, via web-based platforms such as Zoom and Webex. While time will tell whether virtual meetings are an acceptable alternative to in-person meetings, there is a scene that everyone involved is interested in making the process work.

Q2: How have municipalities adapted to the social distances guidelines being followed in New Jersey and what challenges do you foresee in light of recent developments?
 

RD: As Chris stated in his last response, based on guidance issued by the DCA earlier this month, a significant number of municipalities have transitioned to virtual meetings on web-based platforms in lieu of in-person meetings. This will allow the public to participate in accordance with the State’s Open Public Meetings Act. Not surprisingly, some municipalities have moved quicker towards implementing the DCA’s guidance. While we are pleased to see municipalities moving quickly to adapt to COVID-19 related interruptions, it is essential that applicant and board attorneys are diligent in ensuring that hearings adhere to the guidance provided by the DCA, including allowing the public access to all application materials and plans prior to the meeting date. Public notices should also be drafted to include information for public participation via the web-based platform or telephone. Boards must also facilitate public comment on applications, as well as the public’s right to cross-examine witnesses. We believe that this process will continue to transmute over the coming months. Because this scenario is new to everyone, and there are still many unknowns, for applications that are highly contested, it may be recommended that an applicant’s attorney delay a land use hearing until in-person meetings resume, or the virtual meeting process is perfected and codified.

Q3: What advice would you give to developers trying to secure approvals during these uncertain times?

RD: Whether a developer is trying to secure approvals during these uncertain times or in normal times, it is our position that there needs to be an open and communicative process with the municipal planning department and staff. If an application was previously scheduled and cancelled due to the current crisis, and the particular municipality is moving forward with virtual hearings, it is recommended that the developer meet with their attorney to discuss the best strategy moving forward. As I stated earlier, if the application is highly contested, or there is a belief that an approval could be appealed, it is advisable that the land use hearing be delayed until in-person meetings resume. If not, and the developer wishes to process with a virtual hearing, as is the case with multiple clients at MSW, we have been focused on preparing the entire project team for the virtual meeting format. The MSW land use team has presented several applications during the crisis. There are significant differences between a virtual meeting and an in-person meeting, and some people are more technologically savvy than others. It is important that clients understand the need to still present a succinct and powerful presentation, no matter what the platform.

CM: For developers who have not yet submitted development applications, but are still working on concept plans, this is a great time to line up your project team and prepare to submit a complete application as soon as the municipality’s planning department begins to accept new development applications (while some municipalities are accepting applications via FedEx or UPS, a large number are not receiving new applications at this time). As is our general practice, we like to introduce projects to planning departments and staff well before an actual application is submitted. This may be a perfect opportunity to submit a brief overview of the project, along with concept plans, to a municipal planning director, asking for feedback on the proposed project. There is still a significant amount of work that can be done during this crisis. Eventually, municipalities will reopen. At that time, there will likely be a large backlog of applications and a significant amount of new applications coming in. Spending some extra time putting together a better and more thorough application could never hurt your chances of securing an approval.

Q4: How can the attorneys at MSW assist developers seeking to navigate this new terrain?
 

CM: MSW is a full-service real estate law firm, representing clients throughout the lifecycle of a development project. From handling the initial transaction to securing entitlements (and everything in between), our firm has a deep bench of highly-skilled lawyers. We pride ourselves on being a modern firm, using technology to be more efficient. In this new world — one in which municipalities are moving to technology-enabled planning and zoning board hearings, we believe that we are well equipped to quickly transition, remaining as effective in helping clients secure approvals. As we continue to monitor the changing landscape, we will do our best to keep everyone up to date.

For more information, please feel free to contact:

Chris J. Murphy, Esq.
(973) 705-7421
cmurphy@murphyllp.com

Roosevelt J. Donat, Esq.
(973) 705-7414
rdonat@murphyllp.com
<

In Part 2 of this 4-part series, Charles J. Wilkes, Esq. answers questions related to financing challenges arising in the COVID-19 crisis. As a partner at Murphy Schiller & Wilkes LLP (MSW), Charles leads the firm’s Banking and Commercial Finance and Real Estate Finance practice groups.  He represents clients in a wide range of transactional and financing matters in New Jersey and New York and throughout the United States.

Q1: How have the COVID-19 pandemic and recent “stay-at-home” orders impacted commercial landlords and their mortgage lenders

A1: Legally speaking, the COVID-19 pandemic and the governmental orders shutting down business activities do not excuse a borrower’s obligation to make payments due under a commercial mortgage loan. They also do not excuse the obligation to pay both real estate taxes and operating expenses. Commercial mortgage loan documents provide that payment obligations due to a mortgage lender are absolute and unconditional, which means that the borrower must make payments, without regard to financial hardship or external events, including global pandemics and governmental orders. The legal principles governing lending transactions, however, do not make borrowers and lenders immune to the pressures imposed on our economy by COVID-19 and government action to limit its spread. Most commercial and industrial real estate tenants are either closed or facing major declines in business revenue. And many residential tenants have lost their jobs or have suffered pay cuts. As a consequence, tenants across the real estate spectrum are unable to make monthly rent payments due under their leases. They are also unable to reimburse their landlords for real estate taxes and operating expenses. In fact, brand name businesses, including Staples and The Cheesecake Factory, have announced publicly that they will not be making rent payments during the COVID-19 crisis. That reality leaves many landlords without the cash flow required to service their mortgage debt and operate their properties. Lenders are therefore facing a steep drop in monthly mortgage payments and a rising number of loan defaults.

Q2: What should commercial landlords do if a loan default is anticipated or occurs as a result of the COVID-19 pandemic?

A2: Commercial landlords should notify their mortgage lenders promptly upon receipt of non-payment notices from their tenants or upon any significant reduction in cash flow due to COVID-19. Although commercial mortgage lenders are not legally required to modify loan payment obligations and may not be able to accommodate every borrower who requests relief, banking regulators are encouraging lenders to offer forbearance to borrowers in order to mitigate the financial impact of COVID-19.  On April 7, 2020, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau issued the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”, which encourages lenders to “work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19”. Regulators have advised that they “will not criticize institutions for working with borrowers in a safe and sound manner”. Additionally, with court systems closed or operating on a limited basis and evictions and foreclosures halted by governmental order, lenders and borrowers must, for the time being at least, work through these issues on their own.

At this point in time, we have found that most borrowers and lenders are already taking very proactive approaches to the COVID-19 crisis, even with respect to loans that are not yet in default due to COVID-19. Commercial landlords are talking with their tenants, reviewing the status of their leases and analyzing their projected cash flow over the next several months. Commercial landlords are also actively discussing the possibilities for deferrals of principal and/or interest payments with their mortgage lenders. Commercial banks have articulated policies for granting payment deferrals to landlords in need of assistance. And, derivatives desks at major financial institutions are working to amend the terms of interest rate swap agreements to permit payment deferrals under such agreements.

Finally, it is important to remember that the relationship between a commercial mortgage lender and its borrower is often a complex one. Monthly payments of principal and interest are not the only consideration in that relationship. Loan documents include many terms and conditions that could be affected by the COVID-19 crisis, including debt service coverage ratios, debt yield covenants, leasing requirements, cash flow sweeps, reserves for lease rollover risk and personal guaranty obligations – just to name a few.  Borrowers and lenders must consider the impact that COVID-19 will have on all of their obligations and how such obligations can be modified to address Coronavirus-related impacts.

Q3: What effect will COVID-19 have on construction loans and what should construction lenders and borrowers do about it?

A3: Over the past several weeks, construction projects across the United States have been halted or slowed due to COVID-19.  Such work stoppages and slow downs have occurred for a variety of reasons, including but not limited to (1) executive orders shutting down construction activities (such as Governor Philip D. Murphy’s Executive Order 122 in New Jersey, which halts all non-essential construction as of April 10, 2020), (2) social distancing measures which reduce or slow construction activity at otherwise operational construction sites, (3) workforce reductions due to illness and concerns about the spread of COVID-19, (4) disruptions in the supply chain for construction materials due to COVID-19 and (5) an inability to obtain necessary permits and approvals or complete necessary inspections due to the closure of municipal offices.  Due to these constraints, contractors may not be able to complete projects within the timelines provided under their construction contracts. Contractors may invoke force majeure provisions under such contracts. As a result, many developers may not be able to meet completion deadlines under their construction loan agreements, creating events of default under such agreements. In the case of certain projects, developers may not be able to deliver space to tenants by the deadlines set forth in their lease agreements, which may result in cancelled leases. In turn, cancelled leases may result in the developers being unable to service or refinance construction loan debt. It is certainly difficult to understate the complex range of effects that COVID-19 could have on real estate development and construction.

As is the case with permanent mortgage loans on stabilized properties adversely impacted by COVID-19, borrowers and lenders must take a proactive approach. Borrowers should review their construction contracts, leases and construction loan agreements to assess the impact that construction delays will have on each of those contractual agreements.  Borrowers should then convene discussions with their contractors, tenants and lenders to negotiate the modifications necessary to extend project deadlines. Each borrower should seek flexible extension options under such agreements, including an extension of the construction loan maturity date under its construction loan agreement.  Lenders will likely need additional assurances that their borrowers will be able to fund additional carrying costs, construction costs and interest expenses arising from such extended timeframes for project completion.  Ultimately, mitigating the impacts of COVID-19 on a construction loan will require a collaborative mindset by all parties involved in the applicable project, including the developers, contractors, lenders and tenants, who will need to work together to ensure that the delayed construction project can ultimately be completed successfully.

Q4: What alternative financing options are available to a landlord if mortgage capital becomes unavailable due to the current crisis?

A4: Unfortunately, the recent federal and state government relief efforts do not provide direct relief to landlords.  Instead, federal and state relief is focused on funding payroll and business operating expenses to keep people employed during the pandemic.  The good news for landlords and their mortgage lenders is that tenants can use federal and state funding to pay their rent expenses, which in turn permits landlords to make their mortgage payments and pay for real estate taxes and operating expenses. Two sources of such relief are the Economic Injury Disaster Loan Program (EIDL) and the Paycheck Protection Program (PPP).

EIDL is a direct loan program administered by the Small Business Administration (SBA).  Applicants must submit their applications directly to the SBA and funds are disbursed directly by the United States Treasury.  Borrowers may borrow up to $2,000,000 at an interest rate of 3.75% for a term of 30 years. The loans may be used to pay rent, payroll and other operating expenses.  Businesses applying for such loans must meet certain size standards and be located within a declared disaster area.

PPP is a federally guaranteed forgivable loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Loans under the program are originated by lenders approved by the SBA and funded by the federal government. A borrower may borrow 2.5 times its average monthly payroll cost, up to a maximum of $10,000,000.  All PPP loans will bear interest at 1% and have a term of 2 years. Loan payments will be deferred for 6 months. The loans may be used for payroll costs, rent, utilities and interest on debt obligations. Subject to certain terms and conditions, each PPP loan is forgivable. At least 75% of the loan proceeds must be used for payroll costs, but the other 25% may be used for rent and other qualifying expenses.  Businesses applying for such loans must meet certain size standards.

Landlords, tenants and mortgage lenders should work together to ensure that the proceeds of these loan programs are used to fund rent payments, to the extent permissible. Tenants’ use of the loan proceeds for rent payments will certainly reduce commercial mortgage loan defaults.

Q5: How can the attorneys at MSW assist both borrowers and lenders with COVID-19 loan modifications?

A5: MSW attorneys have deep experience in real estate finance transactions, representing national and local banks, non-bank lenders and borrowers in sophisticated lending transactions.  MSW attorneys are available to help borrowers and lenders structure and document loan modifications which will permit all parties to endure this current crisis. MSW attorneys are well-versed in the legal and business concerns that guide relationships between borrowers and lenders in commercial mortgage transactions.  Although different sectors of our economy have been affected differently by this crisis, everyone has been affected in some way and everyone stands to benefit by working collaboratively. We look forward to assisting you.

For more information, please feel free to contact:
Charles J. Wilkes, Esq.
(973) 705-7422

cwilkes@murphyllp.com

Last week, the New Jersey Department of Community Affairs, Division of Local Government Services (DLGS) issued a guidance document to New Jersey’s 565 municipalities to ensure continuity of land use procedures while New Jersey battles the unprecedented COVID-19 health crisis.

While reminding Planning and Zoning Boards of Adjustment (collectively, “Boards”) of their continued obligations to comply with the State’s Open Public Meetings Act, the document provides guidance on the process for conducting virtual and telephonic public meetings, and makes recommendations regarding filing plans and application materials, providing adequate public notice, conducting hearings and facilitating public participation, and the recording of proceedings.

Notably, the guidance recommends the following:

• Boards should consider receiving plans electronically, and posting them for public review on and through the municipal website, drop-box, or some other online service that is accessible to the public.
• Boards should publicly post, and post online, a phone number and email for the Board Secretary, and members of the public should be advised that they may contact the Board Secretary to receive a hard copy of the plans and application materials by mail or via an exchange site such as a drop/pick up box by appointment at a secure, public location such as the police station or at the municipal building.
• Public notice requirements must still be satisfied. Notice should provide conference call access or web-meeting access information, and dial-in information should be provided to individuals without computer access or mobile device. Further, the notice should identify the websites on which plans are posted, contact information for the Board Secretary, and all available means of achieving public access to all documents and the meeting itself.
• It is suggested that Zoom, Facebook, YouTube or some other video-conferencing technology will provide the most appropriate forum for hearings.
• Board must facilitate public comment on applications, as well as the public’s ability to cross-examine witnesses.
• A court reporter should participate in any virtual hearing, transcribing the video session. A recording of the entire proceeding should be retained using the adopted virtual meeting technology.

While each municipality will likely handle the processing of land use applications differently throughout this crisis, the hope is that this guidance will provide some level of direction in regards to ensuring that the land use application process continues to function. The implementation of technology-enabled solutions will allow municipalities to avoid backlogs and other long term impacts associated with this unprecedented crisis.

The attorneys at Murphy Schiller & Wilkes LLP are closely monitoring municipal responses throughout the State and will continue to provide updates as more information becomes available. If you have any questions related to the DCA’s guidance or the land use application process, generally, please feel free to contact Chris J. Murphy, Esq. at (973) 723-7036 or cmurphy@murphyllp.com.

This is the first of a 4-part series being presented by Murphy Schiller & Wilkes LLP. In Part 1, Matthew J. Schiller, Esq. answers questions related to assisting clients through real estate and business challenges associated with the COVID-19 crisis. As a partner at Murphy Schiller & Wilkes LLP (MSW), Matthew represents clients in a wide range of transactional and litigation matters throughout New Jersey, New York, Connecticut, and elsewhere throughout the country.

Q1: Can a tenant’s performance obligations under a lease be forgiven as a result of the COVID-19 pandemic?

A1: Most likely not, but it will depend on the terms and conditions of the lease. The COVID-19 pandemic will significantly impact many tenants’ ability to perform certain obligations under their leases, including the ability to timely pay rent (due to economic hardships), maintain their premises (due to governmental closures and lack of available third-party service providers), and timely complete fit-outs and other alterations (due to supply chain disruptions and inability to obtain necessary permits from local authorities). During these trying times, it is critical to remember that every commercial lease and/or contract is a stand alone document governed by its express terms. Accordingly, there is no “one size fits all” solution to particular performance issues under commercial leases and each document needs to be carefully reviewed to determine (1) if the lease expressly addresses the particular issue, and (2) if not, how broadly (or narrowly) can particular provisions be construed to govern non-compliance challenges resulting from this pandemic.

The most applicable provision in many leases is the “force majeure” clause, which is intended to address the parties’ rights and liabilities (or lack thereof) in situations where “unavoidable delays” outside of a party’s control will delay performance. It is critical to remember that force majeure provisions are generally intended to “toll” performance of certain lease obligations on a day-for-day basis for so long as the source of the applicable delay continues in order to avoid a default under the lease; however, these provisions generally do not simply “forgive” non-performance. Once a party is able to perform under the Lease, it must promptly do so. Moreover, most force majeure provisions do not apply to economic hardships. Thus, unless a tenant’s actual ability to pay rent is made impossible due to a particular condition (e.g., all applicable banking institutions are closed and not permitting withdrawals or honoring deposits), the payment of rent would not be tolled pursuant to a force majeure clause.

Prior to the COVID-19 pandemic, force majeure provisions have been narrowly construed by courts. Accordingly, if a force majeure provision does not expressly reference pandemics, epidemics or the like or is otherwise insufficiently broad, it may not be applicable to delays resulting from the COVID-19 outbreak. However, recent closures required due to government actions in response to the virus (e.g., Governor Murphy’s recent executive orders) may be an alternative basis to apply force majeure under a lease. In instances where a force majeure clause does not incorporate any applicable scenario or the lease fails to include a force majeure provision, a tenant would have to rely on equitable concepts such as “impossibility” or “frustration of purpose” to temporarily excuse non-performance.

In summary, unless a lease provision expressly provides to the contrary, it is highly unlikely that a lease (or court) will “forgive” non-performance of obligations; however, certain obligations may be tolled if the lease expressly permits. MSW attorneys can help both landlords and tenants evaluate specific lease provisions to confirm their lease obligations, rights and liabilities.

Q2: Are landlords in New Jersey required to forbear or forgive the payment of rent from commercial tenants due to recent governmental actions pertaining to the outbreak of COVID-19?

A2: No. Although the majority of Governor Murphy’s recent Executive Orders pertaining to the COVID-19 pandemic will have various impacts on the real estate industry, no governmental actions to date require commercial landlords to forbear or forgive any rent payments due from commercial tenants.

Executive Order 106 temporarily prevents the removal of lessees, tenants, homeowners or any other occupants from eviction actions and/or foreclosure proceedings; however, it only applies to residential properties (i.e., any property rented or owned for residential purposes, including, houses, buildings, mobile homes, but excluding hotels, motels, or other guest houses, and residential health care facilities). Moreover, although Executive Order 106 temporarily prohibits the displacement of individuals from their residences, it expressly does not affect any schedule of rent that is due. Accordingly, although apartment operators are significantly impacted by Executive Order 106, the payment of rent by residential tenants is not forgiven. Further, Executive Order 106 is completely inapplicable to owners of other commercial properties such as shopping centers, office buildings and industrial parks, who may continue pursuing eviction actions against commercial tenants for the non-payment of rent (subject to court closures and scheduling limitations resulting from COVID-19).

Executive Order 107 imposes widespread restrictions on the operation of businesses in New Jersey for the duration of the COVID-19 pandemic. Specifically, Executor Order 107 requires that New Jersey residents remain in their residences except in limited circumstances, including, obtaining goods and services from “essential” retail businesses. Essential retail businesses currently include grocery stores, pharmacies, alternative treatment centers, medical supply stores, retail functions of gas stations, convenience stores, hardware/home improvement stores, banks/financial institutions (retail only), laundromats/dry cleaners, stores that sell supplies for children under 5 years old, pet stores, liquor stores, car dealership (but only to provide auto maintenance and repair services), and auto mechanics, mail and delivery stores (retail only), mobile phone and repair shops, bicycle shops, but only service/repairs, livestock feed stores, nurseries and garden centers, and farming equipment stores, child care centers (only for essential workers), realtors (but only to show houses 1-on-1), firearm retailers (by appointment only during limited hours) and microbreweries and brewpubs (for home delivery only). All other brick-and-mortar premises of non-essential retail businesses and recreational and entertainment businesses have been ordered to temporarily close. Although Executive 107 allows non-retail businesses to stay open, it requires that businesses accommodate their workforce, wherever practicable, for telework or work-from-home arrangements.

Based upon the foregoing, the public’s ability to purchase goods and partake in commerce with many businesses will be significantly curtailed for a potentially extensive period of time. Notwithstanding such restrictions, Executive Order 107 provides no express economic relief for commercial tenants from paying rent to landlords if their business is closed as a “non-essential retail business” or its employees are temporarily not utilizing the building because they are staying/working from their homes.

Governor Murphy’s Executive Orders will significantly impact many tenants’ businesses and their ability to operate at their premises, however, no official actions have been taken to date that would forgive or permit late payments of any rent obligations by commercial tenants. Accordingly, unless a commercial lease expressly provides to the contrary, commercial landlords have no obligation under New Jersey law to forbear or forgive rent payments due from commercial tenants. MSW attorneys can assist landlords evaluate their available rights and remedies under their respective leases, at law or in equity, should a tenant fail to timely pay rent in accordance with its lease.

Q3: What options do landlords and tenants have if a default is anticipated or occurs due directly (or indirectly) to the COVID-19 pandemic?

A3: At this time, it is recommended that both landlords and tenants act and negotiate in good faith to resolve potential lease issues that arise due to the COVID-19 pandemic. Notwithstanding the express obligations, rights and remedies available under a lease, most commercial leases were not drafted in a manner that contemplates the extended closure of businesses and government services as a result of a pandemic such as COVID-19. Moreover, existing case law establishing precedent for available equitable relief for contractual and leasing disputes is extremely limited and unpredictable given the current unique factual circumstances confronting society. Accordingly, there may be significant ambiguities and unknowns under the lease, at law, and in equity, that prevent parties from fully evaluating the applicability of their rights and remedies should a lease dispute arise.

It is clear that there will be extensive economic impacts on the real estate industry as a result of the (temporary and permanent) closures of many commercial businesses due to the stay-at-home and other quarantine policies instituted by federal, state and local governmental authorities. As a result, landlords should be mindful of the tremendous revenue strains and other performance limitations currently impacting most commercial tenants at this time. Tenants must also be cognizant of their landlord’s significant ongoing obligations, including mortgage payments, property taxes and other maintenance costs and obligations with respect to their properties, which have not been relaxed by any federal, state or local governmental actions to date.

Therefore, in most instances, it would be advisable for landlords and tenants to proactively address (individually and/or collaboratively) the various leasing issues that may arise in connection with their respective tenancies. Landlords should prepare a global strategy towards dealing with its tenancies, all while being cognizant that each tenancy may experience unique circumstances. For example, a grocery store or pharmacy is currently experiencing very different economic conditions as a result of this pandemic than a closed furniture store. Similarly, tenants should proactively address any anticipated rent or other lease performance concerns in order to avoid potential default scenarios under their leases. If requesting a rent concession from its landlord, a tenant should be prepared to demonstrate that they are contemporaneously applying for applicable state and federal financing/loan programs, to the extent available.

Numerous forbearance strategies and structures exist that would enable a tenant to temporarily reduce its financial obligations during the pandemic on economic terms acceptable to the landlord. The attorneys at MSW are available to discuss potential structures and remedies available to temporarily restructure the parties’ financial obligations under the lease, including, but not limited to, the use of security deposits (subject to replenishment) to ensure that tenancies and building operations can continue in an uninterrupted manner throughout this crisis.

Q4: Which Federal and State financing/loan programs are your business and real estate clients most interested in applying for?

A4: While there are numerous Federal and State financing/loan programs related to helping businesses withstand this crisis, there are two programs that seem to be most advantageous to our clients.

The first is the Paycheck Protection Program (PPP), a federally guaranteed loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was recently passed by Congress. Administered by the Small Business Administration (SBA), this program will help employers maintain their payrolls during this crisis. If employers maintain their workforce, up to eight (8) weeks of payroll costs can be forgiven. The loan can be used for payroll costs, costs related to health care benefits, payments of interest on any mortgage obligation, rent, utilities, and interest on any debt obligations incurred before the covered period.

The second program is the Small Business Emergency Assistance Loan Program, a state-level program being administered by the New Jersey Economic Development Authority (NJEDA). This program will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenue. Loans made through this program will have a ten-year term with zero percent interest for the first five years. Thereafter, the loan resets to the NJEDA’s prevailing floor rate (capped at 3.00%) for the remainder of the term.

Q5: How can the attorneys at MSW assist clients through this crisis?

A5: With the right assistance, we believe that our clients will get through these uncertain times. There is no denying that there is going to be some pain, but we are here to help. Whether a client is interested in seeking advice on renegotiating the terms of their lease or loan, or they would like to learn more about applying for financial assistance, the attorneys at MSW are available to assist. Now is a time for community. We will all get through this together.