A new Congressional bill will include a replenishment of funds for the CARES Act’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL), both of which ran dry last week after an influx of loan applications.
The new deal, which will include an additional $310 billion to the PPP and $50 billion to the EIDL, is expected to be approved by Congress this week.
The American Society of Travel Advisors (ASTA) commends the swift movement of Congress and the Trump Administration in re-fueling the two programs. Last week, they also released a list of round four priorities, which included immediate additional funding to both programs, along with long-term fixes to the PPP such as allowing businesses with up to 2,000 employees to apply; extending the program through Dec. 30, 2020; increasing the loan’s maximum threshold; and lengthening the loan’s terms, among other requests.
“While these programs are far from perfect, they have provided financial relief to some of our members, and the additional funding will mean more relief for more travel agencies,” according to a statement released by ASTA. “The need for increased funding is particularly acute, as member survey data shows a large number of ASTA members have thus far been unable to access relief under either program, which we view as unacceptable.”
ASTA’s data, which was gathered from nearly 700 respondents between April 17-20, highlights members’ experiences with the various CARES Act relief programs. Although two-thirds of those surveyed had applied for PPP, only 20% had been approved for a loan.
Many also had difficulty navigating the loan processes put in place; nearly 40% reported finding the process very difficult, compared to 26.8% finding the process moderately difficult and 17.3% finding the process somewhat difficult.
We will also support any and all measures to renew consumer confidence in the U.S. economy and in the travel industry in particular, such as widespread, consistent and quick coronavirus testing and work toward an eventual vaccine.
In the case of the EIDL, the numbers were equally as bleak: Approximately 63.7% of ASTA members applied for EIDL, but only 7.1% were approved. Most of these applicants found the process very difficult (26.1%) compared to moderately difficult (22.6%) or somewhat difficult (17.8%).
The lack of approval and funding that ASTA’s members are experiencing mirrored that of Travel Leaders Network, which is North America’s largest travel agent consortium, with more than 55,000 members. They released their own survey data late last week that further highlighted the shortcomings of these two programs.
“Our laser-focus in the coming weeks and months will be securing the maximum amount of financial relief for the greatest number of our members, so they can survive the immediate crisis and be prepared for an eventual recovery,” ASTA said. “We will also support any and all measures to renew consumer confidence in the U.S. economy and in the travel industry in particular, such as widespread, consistent and quick coronavirus testing and work toward an eventual vaccine. Doing so will help instill consumer confidence and get America’s economy, and its intrepid travelers, moving again.”
The Details
American Society of Travel Advisors
www.asta.org
Read more from TravelAge West about the COVID-19 outbreak.
