When he saw that the program, created during the 2008 financial crisis, was meant “to support the flow of credit to consumers and businesses,” he wondered: Could that help him get short-term relief on the Hershey loan? No, as it turned out; TALF was designed to help bondholders by lending them money in exchange for bonds like the one linked to the Hershey property as collateral, but it offered no relief to the actual borrowers.
Mr. Patel worries that he may lose the Hershey property. He has set aside $200,000, taken from his company’s other holdings, to pay the $60,000 monthly shortfall he expects to face starting in November, for four months. After that, only another round of aid from the government could keep the property afloat. He is also finding it harder to deal with traditional banks, which typically have more straightforward loan terms but became stricter during the pandemic about negotiating changes to existing loans and even with disbursing what they have already agreed to lend.
In early August, Mr. Patel’s biggest lender asked him for a 12-month “pro forma,” a detailed estimate for how his business would perform over the next year, a monumental request considering how uncertain the future remains. On the morning he had to make a bullish case to the loan officer about the hotel business, the dissipating winds of hurricane Isaias had knocked down the tree in his Hampton Inn parking lot in New Jersey, forcing him to grab a chain saw.
His daily routine has changed, too. He used to reach for his phone while still in bed each morning and scroll through spreadsheets that showed the daily activity at each hotel. But there was little point in doing so after the lockdowns slashed occupancy.
“If I were to calculate all the money that we’re losing, I think I would become unable to just do and see the strategy ahead,” he said.
These days, he often spends hours every day on the phone talking to employees who can’t make it back to work because of child care conflicts or transportation problems. He strategizes about how to help them pay for transportation and their families’ care. He has also found more time to spend with his wife and three children, his parents and members of his extended family who help run the business.
When a vice president in the company started sewing masks in April, Mr. Patel, his wife and his parents joined her in the effort. They kept some of the masks they made for personal use and donated the rest to a hospital. And Mr. Patel picked up a new skill: “I learned how to sew.”