The Wall Street Journal (WSJ) is reporting that many small businesses are simply deciding to close-down in the face of the COVID-19 crisis. Many business owners cite thin margins, low cash cushions, slow to act government, uncertain rescue funding, and too many future unknowns as reason for “cutting their losses.” Many business owners are also refusing to take on additional debt. Other small business owners are concerned that it will simply take too long for revenues to recover. This is a chilling development, when U.S. small business employ 60 million people – or approximately 47% of the entire U.S. workforce. What does all this mean for the real estate sector? It can’t be good.
The International Monetary Fund predicts that the U.S. economy will contract 5.9% this year – that’s compared to the 2.5% economic shrink that occurred in 2009! On Wednesday, the unemployment rate increased to 13%. The WSJ reports that numerous banks – including JP Morgan are aggressively increasing loan loss reserves in anticipation of loan defaults and write-offs. There is, however, a glimmer of hope.
WINPRO Funds stands ready to assist small business owners and investors who need immediate liquidity. WINPRO Funds is well capitalized and is offering lending solutions across all asset types and geographies. Our proprietary due diligence platform allows us to streamline the underwriting of loan requests. With no hidden fees and market pricing, WINPRO Funds offers small business owners a liquidity lifeline. Our team has over 100 years of combined commercial real estate and lending experience. Let us be your liquidity solution. Call us today at 720.344.1174, or visit our website at www.winprofunds.com.