America’s hoteliers welcomed the Small Business Administration’s (SBA) announcement of a much-needed expansion of the Economic Injury Disaster Loan (EIDL) program that will provide small business owners with additional resources as the Covid-19 pandemic continues to hinder the nation’s economic recovery.
Since the start of the pandemic, AAHOA worked with the SBA, key congressional committees, and individual Members of Congress to advocate for more relief when it comes to an increase in EIDL caps and parity between the Paycheck Protection Program (PPP) and EIDL with regards to a waiver of the affiliation rules. The EIDL program provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. These loans help businesses cover financial obligations and operating expenses they otherwise would have met if not for a disaster.
The EIDL enhancements announced by SBA include:
- Raising the threshold up to $2 million per property
- Raising the aggregate loan cap up to $10 million
- A waiver of affiliation rules (permits assistance at multiple properties)
- A waiver of the credit-elsewhere requirement
- Priority for NAICS Code 72 businesses
- A 30-year fixed amortization period with a low 3.75% interest rate
- Funds can now be used to pay down prior commercial debt and make monthly payments toward federal debt (including principal and interest payments)
“This is a significant achievement for the lodging industry and small businesses across the country,” said AAHOA Chair Vinay Patel. “The lodging sector is not projected to recover until late 2023 or early 2024, but the continued spread of the Delta variant is stalling the economic recovery. These changes to the EIDL program will free up additional resources for small businesses that are still struggling.”
“We applaud President Biden and SBA Administrator Guzman for taking these critical steps to strengthen small businesses and protect the foundations of our economy,” said AAHOA Interim President & CEO Ken Greene. “From the jobs they create to the businesses they support, hotels are economic engines in communities across the nation. These EIDL enhancements will ensure that hoteliers can keep the lights on and continue to welcome guests as we work towards recovery.”