Small business owners almost always have to personally guarantee commercial rents. "My business doesn't have revenue so I'm not paying" is simply not a valid response unless the owner is willing to take it the whole way to bankruptcy, which I'm sure we'll see a surge of in the coming months from the more aggressive landlords. It varies by state but my state is very forgiving to residential tenants and very unforgiving for commercial tenants (I say this as a former commercial tenant who owed past due rent at one point).
The SBOs with resources will just have to continue paying rent out of pocket, or face liens against their personal assets.
Right. Quite a lot of SBOs never thought this day would come, that they had no choice but to sign such agreements. Tenant ignored the reality of these unfair and untenable agreements. And here we are.
My response to a landlord insisting on 100% rent for property, that just become non-revenue generating by order of the government, or else they will take my personal property? Force majeure, I owe you $0, this contract is null and void. Shall we re-negotiate?
Liens are going to require court judgements. That system is about to get plugged up with cases. Most SBOs and landlords are going to have to re-negotiate. Landlords will talk deferred rents and suggest SBOs get one of these SBA 3.75% loans, in order to make the landlord 100% whole, eventually. SBOs should seek better advice than that which comes from their landlord. SBOs could do much worse than mimicking the likes of Subway, Mattress Firm, etc. by insisting haircuts are coming, fast. And by much worse, I mean, paying the landlord 100% and making them whole.
The SBOs with resources will just have to continue paying rent out of pocket, or face liens against their personal assets.