Workout: Making the Best of a Bad Loan Situation

Like a high tide rolling in, or flood waters pouring over the banks of a river, liquidity flowed abundantly during the early days of the COVID-19 pandemic. We were awash in cash. Paycheck Protection Loans and other stimulus cascaded through banks filling the deposit accounts of businesses desperate to stay afloat. In those early days, as the nation abruptly shut down, many lenders readily modified loans. They granted short-term (90- or 180-day) deferrals and looked past the pandemic, ahead t…