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What Should Lenders Be Asking Now?

June 30, 2020 is right around the corner. It marks the end of the first half of the year, the end of the first quarter of Covid-19 impacts, and the start of the summer season. What are the questions lenders should be asking borrowers? What are the questions borrowers should be asking themselves?

Here are Focus Management Group’s suggestions:


CARES Act and other government support for businesses

Did the Company receive a PPP loan?

-If so, how much was received, what lender provided the PPP loan, and what was the funding date?

  • How have the loan proceeds been used?

  • What is the amount of forgiveness expected?

  • When will the application for forgiveness be submitted to the lender?

-If not, should the Company still apply? The deadline, as of June 22, 2020, for application is June 30, 2020.

Did the Company receive an Economic Injury Disaster Loan (“EIDL”)?

-If so, how much was received and when?

Has the Company participated in the payroll tax deferral program?

-If so, how much has been deferred to date?

Has the Company participated in any other programs specific to its industry?

-Agriculture: B&I loans, USDA purchase programs.

-Health Care: Accelerated payments, Advance payments, Provider Relief Fund

Is the Company planning to participate in the Main Street Lending Program?


Business Operations

Is the business operating?

-Are employees on site? Are employees working remotely?

-Is the business operating differently in various states or regions?

-What has been the impact of any CDC or government requirements?

  • Social distancing?

  • Testing?

  • Change in workflow?

Next quarter and the remainder of 2020

-Has a reforecast been completed?

-What is expected from a revenue return perspective?

-What plans have been made to reduce costs, either temporarily or permanently?


-What are staffing levels and how has employee availability been impacted?

-Is the head count back to pre-Covid levels?

-Are qualified people available?

-Have wages been increased?

-Have bonuses been necessary?

-For employees who have taken wage cuts, when will wages be restored?

Work from Home (“WFH”)

-Have work from home policies been implemented?

-Will those policies change?

-Has the work location been permanently impacted?

-Will the office footprint change?


-Have costs increased for cleaning?

-Are reconfigurations of production, office or retail and services spaces necessary?

Cash Outflows

-Have rent payments been deferred? If so, to when?

-Have loan payments been deferred? If so, to when?

-Have lease payments been deferred? If so, to when?

Working Capital

-Discuss accounts receivable changes, concentrations, concerns or risks?

  • Have payment terms changed or been extended?

  • New customers?

  • New product lines?

-Discuss inventory issues?

  • Could slow moving inventory be converted to cash?

  • Is the company having trouble sourcing inventory?

-Discuss accounts payable changes?

  • Are vendors exerting pressure?

  • Are replacement vendors necessary?

Weekly cash flow

-Is a weekly cash flow currently being prepared?

-Would assistance in preparing a cash flow help the company?


The key to these questions is to help anticipate the impact of Covid-19 and the return to “New Normal” on the operations, the cash flow, and the financial reporting of the business. The outline of questions is a guideline to facilitate a discussion focused on the thought processes the business is going through and the financial impact over the past few months and into the future.

Focus Management Group has additional resources explaining:

The different CARES Act programs:

Accounting and reporting considerations:

Covid-19 & Working Capital Management 4-Part Series:

Please view our website’s Insights page for articles on these topics. Call us if there is anything you would like to discuss with us.

We hosted a live 30-minute webinar covering this topic on Friday, June 26th at 1:00 PM EST. Watch the replay here:


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