He says they need to be cooperative during the coronavirus pandemic.
Annapolis, Md (KM) With the economy turning sour due to the coronavirus pandemic, Maryland Comptroller Peter Franchot is banks, financial institutions, small businesses and individuals to work together, especially since so many companies could go under due to a lack of revenue provided by consumers who purchase their products.
“So many small businesses will be bankrupt, and so many individuals are going to be laid off from work,” he says.l
He also says these individuals and small businesses may find it difficult to pay expenses such as the rent and the mortgage. If you’re in this situation, Franchot says contact your bank, creditor or financial institution, and ask for a 90-day payment holiday given this health emergency. “I am told you’re going to get a very positive response from banks, from landlords and other financial institutions,” he says.
The President and CEO of the Maryland Bankers Association, Kathleen Murphy, says it’s important for consumers and small business people to reach out. “Banks across Maryland have been proactively reaching out to their consumers. We echo Comptroller Franchot’s appeal to Marylanders to contact their creditors and other business partners to address their specific needs at this time,” she says in a statement.
Franchot says it’s worth their while for banks to try and work something out. “That will allow these small businesses not get into a situation where they literally go bankrupt because they’re facing large fixed costs with very little revenue coming in,” he says.
Comptroller Franchot was asked what if the banks or financial institutions refuse. “Everybody needs to communicate with their bank and their lender. I promise you as Comptroller you’ll get a positive response. If you don’t a positive response, let the Comptroller’s Office know and I will call that financial institution myself,” he says.
The Comptroller’s Office does not regulate banks.
Franchot says he’s spoken directly with a lot of small businesses across the state, and they say unless extraordinary action is taken, many of them will go under as a result of the economic devastation caused by the coronavirus pandemic.