Hotel trade group says bailout bill falls short for small operators

While the American Hotel and Lodging Association (AHLA) said
it supports “the underlying foundation” of the U.S. government’s $2 trillion
stimulus bill, AHLA president and CEO Chip Rogers is calling the current
legislation “unworkable for hoteliers.”

The AHLA takes issue with the fact that the bill caps Small
Business Administration loans at 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,” said
Rogers in a statement. “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. If a hotelier cannot make
debt payments, the business will go under and the jobs are lost.”

The AHLA is pushing the House to amend the bill, with Rogers urging
that legislators move “swiftly.”

“Covid-19 has been especially devastating for the hotel
industry,” he said. “Every day, more hotels are closing, and more employees are
out of a job.”

On Monday, the AHLA and Oxford Economics released new data
indicating that approximately 4 million U.S. hotel jobs have either been
eliminated or are on the verge of being lost within the next few weeks.

Source: Read Full Article