Source: Hotel Business
March 26, 2020
by Gregg Wallis
WASHINGTON— The Senate passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, late Wednesday, which would provide roughly $2 trillion in economic stimulus if it passes the House of Representatives and is signed by President Trump.
The legislation includes payments for millions of Americans, unemployment benefit expansions and loans for struggling businesses.
AAHOA president/CEO Cecil P. Staton also expressed his organization’s appreciation for the passage of the legislation. “America’s hotel owners applaud this step to deliver economic relief to the workers and industries ravaged by the COVID-19 pandemic,” he said. “This relief package will put much-needed capital in the hands of many small business owners. This legislation includes important provisions to expedite the loan process for small business by delegating authority to local commercial banks and providing them with more flexibility with borrowers. We call on the House to pass this bill immediately and send it to President Trump for signature.”
He too believes that it does not do enough for hotel owners. “This legislation is a step in the right direction; however, there are administrative hurdles between small businesses and the capital they need. It may take weeks to get this capital, and many small businesses have days until they close. We are disappointed that the formula for determining the maximum loans available to small businesses still does not provide hotel owners with sufficient liquidity to meet their obligations. This is of great concern to us because we do not anticipate travel to resume by May. That said, we are optimistic about working with the Trump administration and Congressional leadership on phase four of the economic stimulus to meaningfully address the liquidity crisis facing small business owners across the country.”