A survey of some 900 U.S. hoteliers indicates that while 79%
of say they’ve received approval for a Paycheck Protection Program loan and/or
Economic Injury Disaster Loan from the Small Business Administration, 50% say the loans are not enough for them to rehire their staff.
The American Hotel & Lodging Association survey revealed
that 95% reported applying for both or one of the two loan
programs. Hoteliers applied for a median loan amount of $150,000.
The fact that a Paycheck Protection Program loan only covers
eight weeks of payroll and that businesses are required to spend funds in a
short window of time were among the top reasons given for why the funding falls
short. Other respondents complained that the loans offer insufficient aid for
hotels that remain closed under government order.
The AHLA is urging Congress to make changes to the Paycheck
Protection Program,
including raising the loan limit, which
is currently 250% of monthly payroll, and extending the length of time in which
businesses are required to use the funding.
The Economic Injury Disaster Loan program has come under
fire in recent days, after the Small Business Administration decreed that only
agricultural businesses would be eligible to apply starting May 4. Also, the
SBA reportedly lowered the limit to $150,000 after initially announcing loans could
reach as high as $2 million.
Source: Read Full Article