04/04/2020

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How Will Travel Agencies Benefit From Coronavirus Relief?

On Wednesday, Congressional leadership and the Trump Administration arrived to an arrangement and unveiled the...

On Wednesday, Congressional leadership and the Trump Administration arrived to an arrangement and unveiled the text of the Coronavirus Support, Aid, and Financial Safety (CARES) Act: a massive $2 trillion coronavirus aid package deal. Whilst it is predicted to move both chambers of Congress and be signed into legislation by President Trump in the coming days, it is attainable that more alterations may well be created.

For the time becoming, provisions of the CARES Act that will provide aid to the travel agency market, its employees and impartial contractors (ICs) involve:

  • Journey Agencies Eligible for Airline Financial Stabilization Loans ($twenty five billion) – Beneath the monthly bill, the Treasury Secretary is approved to make up to $twenty five billion in loans, personal loan guarantees and other investments in aid of passenger airlines, “ticket agents” (the statutory expression for travel organizations) and other associated aviation corporations.
  • Compact Business Interruption Loans/Paycheck Defense Software ($349 billion) – Beneath this new U.S. Compact Business Administration (SBA) personal loan plan, loans of up to $ten million will be available to U.S. corporations beneath the present SBA measurement standards ($22 million in once-a-year revenue) or with five hundred or much less employees. Impartial contractors and the self-employed are suitable. There are no collateral or individual warranty requirements for these loans. The portion of these loans that covers the business’ payroll, home loan, lease or utility costs from February 15 to June thirty may well be suitable for forgiveness in full or in section.
  • Financial Stabilization Loans for Seriously Distressed Sectors ($425 billion) – Under the monthly bill, the U.S. Treasury Office would be approved to increase low- or no-desire loans and personal loan guarantees to U.S. corporations that incurred losses specifically or indirectly as a result of coronavirus. This aid is only open to a “business that has not or else gained enough economic aid in the form of loans or personal loan guarantees offered beneath this Act,” indicating that corporations could not also apply for the new SBA plan (see above).
  • Unemployment Added benefits for the Self-Employed – The CARES Act would also provide up to 39 months of unemployment insurance policies gains to individuals not or else suitable for frequent unemployment payment (such as the self-employed and those people who have exhausted their frequent gains).

“The coronavirus pandemic has proved to be the greatest obstacle at any time faced by ASTA and its users,” mentioned Zane Kerby, president and CEO ASTA. “Over the past number of months, we have labored hand-in-hand with our thirteen,000 users to protected the most amount of aid for the travel agency local community in this package deal. The reality that travel organizations are involved in the airline guidance portion of the monthly bill is a massive acquire and means that Congress heeded our phone to involve our users in any targeted travel market aid.”

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In the coming days, the American Modern society of Journey Advisors (ASTA) says it will analyze the entirety of the aid package deal for provisions impacting its users and will investigate important topics, this kind of as how the new SBA personal loan plan interacts with the Administration’s existing catastrophe aid applications. ASTA says it will also observe SBA and Treasury/Transportation Office announcements with regard to how they strategy to distribute this aid.

ASTA adds that it sent over 28,000 grassroots messages to legislators through its advocacy web site. It will also hold a member webinar on Friday, March 27 at three p.m. ET to provide users with a preliminary examination.

This tale was at first posted on Luxurious Journey Advisor. 

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