Businesses Face a New Coronavirus Threat: Shrinking Access to Credit

Large and small businesses, which borrow heavily to run their operations, will find it harder to tap credit as the outbreak curtails economic activity.

Jeffrey Albrecht, who owns three Holiday Inn hotels in southern Ohio, watched as $200,000 disappeared from his books in just three days as people began canceling bookings.
The banker handling his mortgages on the properties called. He wanted to know: How much more money could Mr. Albrecht lose before he would miss a loan payment? Mr. Albrecht assured him he could last at least four months.
Others might be less fortunate. “If this goes on for very long, there will be much bloodletting in America’s small business community,” Mr. Albrecht said.
Companies of all sizes, from local businesses to blue-chip giants, have taken a big hit from the coronavirus pandemic which will gut companies’ profits and affect not only their ability to keep operations afloat, but also their ability to borrow money

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