Lending to retrofit a business in response to COVID-19

Description

Abstract: To mitigate the risks associated with COVID-19, many businesses are taking steps to modify their facilities, so lenders need to understand how to evaluate loan requests for retrofitting projects. This article suggests several questions to ask prospective borrowers, such as what’s driving the need for investment and whether customers will notice the improvements, which will help lenders make more-informed lending decisions. A sidebar addresses how to evaluate a borrower’s previous construction management experience.