AHLA supports billion dollar loan plan for small businesses

Friday, April 10, 2020

The American Hotel & Lodging Association (AHLA) recently expressed support for plans by Senate Majority Leader Mitch McConnell and Speaker Nancy Pelosi. According to the plan, an additional $250 billion in loans would be provided to help small businesses.

AHLA also penned a written statement to the Congressional leadership today. Congress has been urged to make several updates to the CARES Act in addition to increasing the funding. AHLA also documented a statement for the Federal Reserve and Treasury. In the letter, the company has requested for some action to prevent thousands of hotel properties from going into temporary or indefinite closure.

Chip Rogers, President, and CEO of AHLA have mentioned in the written statement that the hotel industry applauds the Administration and Congress for their efforts during this unprecedented public health crisis. He mentioned that the company supports the underlying foundation of the CARES Act and considers it as an important step towards helping the country in its comeback. He also mentioned that the urgency to act fast is more critical than ever as the majority of the hotel industry is made up of small businesses around the country.

He further called upon Congress to do more to protect businesses and workers survive this unprecedented time. He informed that the American hotel industry stands at a critical juncture as the crisis progresses beyond what anyone could have projected. He also mentioned that AHLA strongly supports the legislation proposed by President Trump, Senate Majority Leader McConnell, and Speaker Pelosi to provide additional funding for small business loans. He said that funding is important for small business owners across America, to help them keep their doors open and save millions of jobs.

AHLA asked an immediate action to update the CARES Act and increase the limit on SBA loans. According to the body, the current 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 continued layoffs of the workers that the bill aims to protect.

Finally, AHLA has also requested rapid action by the U.S. Treasury, Federal Reserve and SEC to help thousands of small business hotel owners who will be unable to make debt service payments on their mortgages, including commercial mortgage-backed securities (CMBS) debt to keep their doors open and avoid foreclosure. It warned that without immediate action the situation might lead to widespread foreclosures that can snowball into mass disruption and a critical lack of liquidity in the commercial real estate market.

AHLA believes that with additional recommendations would enable the hotel industry to be in a stronger position to make it through the unprecedented crisis and build a foundation for a stronger tomorrow.

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