Looking Ahead, Insight from Elyse D. Cherry, November 2020
Like many of you, I am relieved to be on the other side of the 2020 election. Not just for the break from political emails, texts and ads but now knowing the result gives us a little more visibility into what next year might look like.
COVID-19 continues to impact the economy and how we all do business. Here are the things I am watching as we move into 2021:
1.) City and state budgets: The pressures on local finances could impact education and affordable housing projects. These sectors rely on support and subsidy from local and state government to advance multi-family housing projects and provide per pupil funding for childcare slots and K-12 schools. President-elect Joe Biden has called on Congress to include funding for cities and states to be included in any COVID-relief legislation, and we hope to see progress in the months to come.
2.) Commercial real estate: Small businesses are hurting. While BlueHub doesn’t lend directly to small businesses, we are closely watching how commercial landlords are faring as tenants fall behind on rent. Empty storefronts in wealthy downtown areas are getting most of the media attention but we are keeping our eyes on the urban core. Small businesses are the heartbeat of these neighborhoods. We commend the cities that are providing rent relief programs for businesses but this crisis may require more comprehensive resources.
3.) Residential home foreclosures: As pandemic-related forbearance options run out, we are anticipating a tsunami of home foreclosures in 2021. BlueHub SUN, our foreclosure prevention program, is expanding into four more states to try to meet this need.
Despite the uncertainty, BlueHub Capital has accomplished lots of impactful lending during this tumultuous year. Our organizational strength is what enables us to meet the changing needs of the communities we serve, especially during these challenging times. Leaning on 35 years of experience, BlueHub is helping to build healthy communities where low-income people live and work.