A private loan might come from a friend, a business, a family member.Hard Money - is a business that operates to lend money but is considered a non-bank since they can set their own guidelines and do not operate under the same regulations as a mortgage company or bank (wells fargo or B of A) would. 

Several agents tell me that banks who are selling these properties prefer to avoid potential buyers who need government loans to help them afford it.

I can't imagine a world where we have long term nonpayment of rents that's not somehow backstopped by the government.

Keep this letter with your lease documents as your written record of that event.Seek government if you need further assistance.Be well.Sincerely,Merritt

It's going to be interesting to see what happens and no doubt this economic disaster will be studied for thousands of years (that is, if governments manage not to blow the earth up).

They were in the middle of getting rent assistance from the government and eventually got caught up and even paid on time for a few months. 

Do I have enough reserves to whether most unforeseen events or government intervention in my investing plan?

Perhaps the government's stimulus package will prevent this, but who knows?   

The federal government issues tax credits to state housing agencies who then award the credits to private developers of affordable housing.

From my understanding the Government helps fund local and state governments for distressed properties in the area.