"Society" can't solve anything. The vast majority of our problems are from people trying to solve crap from a top-down perspective - and failing. As others point out just let the markets rebalance.
Building bankruptcies were always going to happen - even before the virus many urban areas had out of control office building. I was in the metro DC area for 20 years there were buildings never occupied along the Dulles tech corridor - and yet they kept building more. It's a rubber band that has needed to snap for a long time now, and artificially delaying the inevitable yet again isn't going to make the inevitable any more palatable.
Small businesses come and go all the time. Small businesses will die where people no longer are, but new small businesses will sprout up where people now are. And if you truly care about small business you would have railed more against the asymmetric covid restrictions that fostered the largest wealth transfer in human history - it's a collective shame we all share. Amazing that the virus was smart enough to not infect people in big box stores or certain political protests, but freaking lethal in small businesses, schools, churches, etc.
Regional banks participated in the overbuilding - even before covid. Oh well - natural selection at work. What's amazing is that somehow only the big banks get bailouts, not the regionals. It's almost as if consolidation is being government sanctioned.
As for regional tax collection - if those regions were more appealing then people wouldn't be fleeing them and they wouldn't have tax problems. Maybe those regions with new tax collection issues should explore spending less in the first place rather than only trying to increase tax revenue? Actually providing city services and taking care of fundamentals like crime rather than making excuses for or flat out encouraging it?
The stock and market losses are only in one sector. Anyone with a decent investment strategy will be diversified to mitigate one portion of their portfolio taking a hit. If you are all in on real estate that's on you, not all of us.
Also my local taxes are going down due to the tax base increasing from everyone fleeing the sinking cities. Maybe you just need to move to change your tax base - or make your area more attractive so it will expand instead of contract.
Once again, NONE of your concerns justify artificially propping up people who have made piss poor decisions. Indeed, industries continue to make piss poor decisions because they assume someone will be there to bail them out. Screw that. It's time to just let crap fall on the floor, people to learn their lessons and make better decisions in the future. You can't legislate common sense.