On Wednesday, Congressional management and the Trump Administration got here to settlement and launched the textual content of a large $2 trillion coronavirus aid bundle, the Coronavirus Help, Aid, and Financial Safety (CARES) Act. Whereas it’s anticipated to go each chambers of Congress and be signed into legislation by President Trump within the coming days, it’s potential that further adjustments could be made.
In the meanwhile, provisions of the CARES Act that can present aid to the journey company trade, its staff and unbiased contractors (ICs) embody:
- Journey Companies Eligible for Airline Financial Stabilization Loans ($25 billion) – Underneath the invoice, the Treasury Secretary is permitted to make as much as $25 billion in loans, mortgage ensures and different investments in help of passenger airways, “ticket brokers” (the statutory time period for journey businesses) and different associated aviation companies.
- Small Enterprise Interruption Loans/Paycheck Safety Program ($349 billion) – Underneath this new U.S. Small Enterprise Administration (SBA) mortgage program, loans of as much as $10 million can be obtainable to U.S. companies underneath the present SBA dimension requirements ($22 million in annual income) or with 500 or fewer staff. Impartial contractors and the self-employed are eligible. There are not any collateral or private warranty necessities for these loans. The portion of those loans that covers the enterprise’ payroll, mortgage, lease or utility bills from February 15 to June 30 could also be eligible for forgiveness in complete or partially.
- Financial Stabilization Loans for Severely Distressed Sectors ($425 billion) – Underneath the invoice, the U.S. Treasury Division can be licensed to increase low- or no-interest loans and mortgage ensures to U.S. companies that incurred losses instantly or not directly because of coronavirus. This aid is barely open to a “enterprise that has not in any other case obtained satisfactory financial aid within the type of loans or mortgage ensures offered underneath this Act,” indicating that companies couldn’t additionally apply for the brand new SBA program (see above).
- Unemployment Advantages for the Self-Employed – The CARES Act would additionally present as much as 39 weeks of unemployment insurance coverage advantages to folks not in any other case eligible for normal unemployment compensation (together with the self-employed and people who have exhausted their common advantages).
“The coronavirus pandemic has proved to be the most important problem ever confronted by ASTA and its members,” mentioned Zane Kerby, president and CEO ASTA. “Over the previous few weeks, now we have labored hand-in-hand with our 13,000 members to safe the utmost quantity of aid for the journey company neighborhood on this bundle. The truth that journey businesses are included within the airline help portion of the invoice is a large win and signifies that Congress heeded our name to incorporate our members in any focused journey trade aid.”
Within the coming days, the American Society of Journey Advisors (ASTA) says it can analyze everything of the aid bundle for provisions impacting its members and can discover key subjects, similar to how the brand new SBA mortgage program interacts with the Administration’s present Catastrophe Aid packages. ASTA says it can additionally monitor SBA and Treasury/Transportation Division bulletins with regard to how they plan to distribute this aid.
ASTA provides that it despatched over 28,000 grassroots messages to legislators by means of its advocacy web page. It should additionally maintain a member webinar on Friday, March 27 at three p.m. ET to offer members with a preliminary evaluation.
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