AAHOA’s state and local advocacy update

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by KATI SICONOLFI and ERIC REINARMAN

A year has passed since the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law, providing a first round of federal aid to state and local governments, individual taxpayers, and businesses impacted by the COVID-19 pandemic. AAHOA has been advocating for policies and laws that will directly benefit hotel owners. Below are just a few of our successes at the state and local levels.

  • Hotels Designated As Essential Businesses. Working with governors, legislators, and local officials we stressed the critical role that hoteliers play in their communities during the COVID-19 crisis. These business owners have provided housing for health care professionals, supply chain workers, and vulnerable populations.
  • SBA Disaster Declarations in Every State. To apply for the SBA Economic Injury Disaster Loan (EIDL), each county in every state had to file a declaration showing economic harm, which allowed the governor to file a SBA disaster declaration. We encouraged governors to expedite the process in their own states, and AAHOA remains committed to working with the SBA to expedite the process.
  • Protection from COVID 19-related Lawsuits (Passed in 24 States, Legislation Introduced in 16 States1). AAHOA Members’ highest priority has always been keeping guests and employees healthy and safe, and following the highest cleaning standards for your properties. We want to prevent a new wave of drive-by lawsuits as states reopen. So far, at least 24 states have taken action to protect your hotels from frivolous COVID-19 lawsuits, and 16 states have introduced legislation to do the same.2
  • Direct Financial Relief. At least 21 states (and counting) have offered direct financial relief, such as grant and loan programs, for small business owners. Florida’s bridge loan program for small businesses is a great example for other states to follow. One trend we are seeing is loan programs specifically designed for the hospitality industry, such as the Delaware Hospitality Emergency Loan Program. Additional examples include the District of Columbia’s $30-million bridge fund for hoteliers and the Maryland Lodging and Accommodations COVID Relief Grant Program.3
  • Tax Treatment of Forgiven PPP Loans. The SBA’s Paycheck Protection Program (PPP) provided a crucial lifeline to help keep hotels open and workers employed during the pandemic. Many borrowers will have these loans forgiven; eligibility for forgiveness requires using the loan for qualifying purposes (such as payroll costs, mortgage interest payments, rent, and utilities) within a specified amount of time.

As the foremost resource and advocate for America’s hotel owners, AAHOA and its Government Affairs team remain committed in our efforts to advance and protect your business interests.

REFERENCES

  1. At the time of this publication, at least 24 states have taken action on COVID-19 liability protections, either through legislation or executive order: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas (COVID-19 liability protections sunsetted in January 2021), Kentucky, Louisiana, Michigan, Mississippi, Montana, Nevada, North Carolina, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, Wisconsin and Wyoming. Furthermore, at least 16 states have introduced legislation on COVID-19 liability protections: Alaska, California, Colorado, Connecticut, Illinois, Maryland, Minnesota, Missouri, Nebraska, New Jersey, New York, New Hampshire, Pennsylvania, South Carolina, Texas and Virginia.
  2. At the time of this publication, at least 24 states have taken action on COVID-19 liability protections, either through legislation or executive order: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas (COVID-19 liability protections sunsetted in January 2021), Kentucky, Louisiana, Michigan, Mississippi, Montana, Nevada, North Carolina, North Dakota, Oklahoma, South Dakota, Tennessee, Utah, West Virginia, Wisconsin and Wyoming. Furthermore, at least 16 states have introduced legislation on COVID-19 liability protections: Alaska, California, Colorado, Connecticut, Illinois, Maryland, Minnesota, Missouri, Nebraska, New Jersey, New York, New Hampshire, Pennsylvania, South Carolina, Texas and Virginia.
  3. https://www.cbre.us/COVID-19/COVID-19-Business-Financial-Relief-Hub/State-Local-Relief
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