New data from the American Society of Travel Advisors (ASTA) reveals an increased number of travel professionals applying for and receiving approval for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs under the CARES Act.
In its latest round of research, ASTA asked its members to share their experiences in applying for these two programs. Data was collected May 1-8 and included nearly 600 responses; it is the second survey sent to ASTA members on the topic (the first survey figures were collected April 17-20).
The two loan programs have been riddled with problems from the start, with both requiring a replenishment of funds from Congress shortly after implementation. As of ASTA’s first survey in late April (and prior to the programs’ refunding), only 20.1% of ASTA members reported having been approved for a PPP loan, and only 7.1% had been approved for EIDL.
RELATED: Here Is What’s Wrong With the Paycheck Protection Program (PPP)
Following the PPP’s replenishment, 64.8% of ASTA’s members have applied for a PPP loan, and 56.2% have been approved.
But the application process hasn’t gotten easier, reports advisors. One-third say the process was “very difficult” compared to “moderately difficult” (28.7%) or “somewhat difficult” (20.1%). Additionally, nearly 40% report challenges in locating a bank, a credit union or other financial institution that would accept the application.
As of today, the Small Business Administration (SBA) has spent about $188 billion of the $310 billion recently added to the PPP, which amounts to the approval of nearly 2.6 million applications from 5,428 lenders. (In a typical year, the SBA may only process some $20 billion worth of loans and loan guarantees.)
About the same percentage of ASTA’s advisors have currently filed for EIDL benefits, but only 26% of ASTA’s applicants have been approved.
The EIDL fared slightly better than the PPP when it came to ease of applying: 29.8% found the process “very difficult” compared to “moderately difficult” (20.7%) and “somewhat difficult” (16.8%).
ASTA has requested several long-term fixes to both these loan programs — in addition to other CARES Act provisions — ahead of Congress’ fourth round of legislation, which is set to pass in the coming weeks.
Eben Peck, ASTA’s executive vice president of advocacy, says that although he appreciates the support Congress has given to agencies, agency employees and independent contractors through the CARES Act, he hopes more can be done when round four of coronavirus relief legislation passes.
ASTA’s recommendations are informed by implementation issues and gaps in the CARES Act programs. They are based in extensive consultations with ASTA members conducted over the past few weeks, says Peck.
“We have been in constant communication with congressional offices, the Treasury Department, the SBA and others on these issues and will continue to do so,” he said. “In doing so, our goal is the same as at the start of the crisis — to fight as hard as we can to get the most financial relief for the largest number of our members as possible."
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American Society of Travel Advisors
www.asta.org
