Home
Hotel News
BITAC® Events!
Operations Jul. 26, 2020 More Info 9 Supplier Spots Left
Building Your Hospitality Business
  Are you a member? Log In  or  Sign Up
 
Share
Send a summary and link to this article
To Email
Your Name
Your Email
Bot Test
To pass the Bot Test, please type the white text that you see in the gray box. This helps us prevent spammers from abusing the system.
Print Printable Version

AHLA Applauds Senate Passage Of CARES Act

Thursday, March 26, 2020
bookmark this
Bookmark to: Digg Bookmark to: Del.icio.us Bookmark to: Facebook
Bookmark to: Yahoo Bookmark to: Google Bookmark to: Twitter
We are on Twitter
ahla
ahla

WASHINGTON—The following is a statement from Chip Rogers, AHLA president and CEO, on the Senate passage of the CARES Act.

“The hotel industry applauds leaders in the Administration and Congress who are working around the clock during this unprecedented public health crisis to ensure the health and well-being of our country and to pass a financial package that helps save the American worker and the industries that drive our economy, including the hotel industry. We are especially appreciative of Senate Majority Leader McConnell, Minority Leader Schumer, and Treasury Secretary Mnuchin for their leadership and driving this process forward. It’s an important first step to getting our country’s economy up and running.

“We continue to support the underlying foundation of the CARES Act to help the livelihoods of millions of American workers and thousands of small businesses. We are very grateful for all the work the Senators have done on this bill, and we believe it is a critical step forward to help save our economy.

“However, there is one challenge that makes the current plan unworkable for hoteliers. The legislation limits an SBA loan to 250% of average monthly payroll. This limit will not allow a business owner to meet both payroll and debt service obligations beyond an estimated 4 to 8 weeks. Consequently, it will result in furloughing the very workers the bill seeks to protect. Since the measure reduces debt forgiveness with any reduction in payroll, hoteliers would be forced to use the entire loan amount on payroll, at the expense of debt service. The harsh reality is that travel restrictions and mandated business closures remain in place. The outlook for the foreseeable future is zero revenue for most hotels. If a hotelier cannot make debt payments the business will go under and the jobs are lost.

“COVID-19 has been especially devastating for the hotel industry. Every day, more hotels are closing, and more employees are out of a job. We urge the House to swiftly take up this legislation, while making these important changes. The hospitality industry stands ready and able to do whatever we can to make it through this unprecedented crisis, while building a foundation for a stronger tomorrow.”

Feedback Messaging & Feedback
We welcome your opinion! Log In to send feedback.
Already a member?
Login
Log In
Not yet registered?
Login
Sign Up
Need More Information?
Information
Benefits
 
  RSS Feed
RSS Feed
Policies
Contact Us
Mobile Version