No regulations in Fresno yet, but city council is considering it I believe.

However, how sction-8 operates in other states, which are with more liberal-progressive state governments; who section-8 operates there, might be entirely different, & more to the liking of who is in charge of finding qualified tenants to be in Rentals. 

Local government workers, hospitals, schools etc.

Stay away from rent-regulated housing, which is typically over 4 units.

This is taken directly from the PPP Loan Application (which required your initials next to each statement):_____The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable, such as for charges of fraud.

This isa Federal Banking regulation, not your banks decision.

I like this area because it's really set up for STRs and most local policies and regulations are favorable to rental owners.

These include rent control, security deposit regulations, lease violations, late fees, eviction processes, barriers to entry (permits, licensing, etc.), and so on.What are your thoughts?

You can do it.One thing you should read up on is FIRTA regulations. 

It's confusing situation to me surrounded regulation, financing limit, close in the downwarding market.