On Wednesday, Congressional leadership and the Trump Administration came to settlement and released the textual content of a significant $two trillion coronavirus aid offer, the Coronavirus Assist, Reduction, and Financial Security (CARES) Act. Even though it is anticipated to pass each chambers of Congress and be signed into legislation by President Trump in the coming times, it is attainable that more modifications may be built.
For the time being, provisions of the CARES Act that will give aid to the travel agency marketplace, its staff members and unbiased contractors (ICs) incorporate:
- Travel Organizations Qualified for Airline Financial Stabilization Loans ($25 billion) – Under the monthly bill, the Treasury Secretary is licensed to make up to $25 billion in financial loans, mortgage guarantees and other investments in aid of passenger airlines, “ticket agents” (the statutory phrase for travel agencies) and other similar aviation organizations.
- Smaller Small business Interruption Loans/Paycheck Defense Program ($349 billion) – Under this new U.S. Smaller Small business Administration (SBA) mortgage plan, financial loans of up to $ten million will be out there to U.S. organizations beneath the current SBA dimensions benchmarks ($22 million in annual earnings) or with five hundred or fewer staff members. Impartial contractors and the self-employed are suitable. There are no collateral or personal warranty requirements for these financial loans. The part of these financial loans that addresses the business’ payroll, home finance loan, rent or utility bills from February fifteen to June thirty may well be suitable for forgiveness in whole or in component.
- Financial Stabilization Loans for Severely Distressed Sectors ($425 billion) – Under the monthly bill, the U.S. Treasury Office would be licensed to lengthen small- or no-fascination financial loans and mortgage guarantees to U.S. organizations that incurred losses directly or indirectly as a outcome of coronavirus. This aid is only open to a “business that has not in any other case been given satisfactory economic aid in the sort of financial loans or mortgage guarantees delivered beneath this Act,” indicating that organizations could not also use for the new SBA plan (see above).
- Unemployment Advantages for the Self-Employed – The CARES Act would also provide up to 39 months of unemployment insurance gains to individuals not in any other case suitable for typical unemployment compensation (like the self-employed and all those who have fatigued their typical gains).
“The coronavirus pandemic has proved to be the largest problem at any time confronted by ASTA and its users,” mentioned Zane Kerby, president and CEO ASTA. “Over the past several months, we have worked hand-in-hand with our thirteen,000 users to protected the most amount of money of aid for the travel agency group in this offer. The truth that travel agencies are involved in the airline help part of the monthly bill is a large gain and suggests that Congress heeded our connect with to incorporate our users in any focused travel marketplace aid.”
In the coming times, the American Society of Travel Advisors (ASTA) says it will review the entirety of the aid offer for provisions impacting its users and will examine crucial topics, this sort of as how the new SBA mortgage plan interacts with the Administration’s existing Catastrophe Reduction programs. ASTA says it will also watch SBA and Treasury/Transportation Office announcements with regard to how they strategy to distribute this aid.
ASTA provides that it sent above 28,000 grassroots messages to legislators through its advocacy web page. It will also keep a member webinar on Friday, March 27 at three p.m. ET to give users with a preliminary analysis.
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