US TRAVEL CARES ACT SUMMARY
UPDATE: US Travel Association spelled out the variety of grants, loans and guarantees approved March 27 as part of the federal CARES Act to help companies retain workers and recover financially from disruptions caused by fighting the COVID-19 virus. The full summary will be available March 31 at the US Travel Association COVID Resource page. The exact timeline for making the funds available will depend on how quickly the government agencies and lenders get the system up and running.
$377 Billion in Small Business Association Loans
Coronavirus Economic Injury Disaster Loans:
A quick cash infusion directly from the Small Business Association available to a broad range of small businesses, self-employed workers, cooperatives, non-profits (501(c)’s) to cover the gap between ordinary expenses and revenue during COVID restrictions. The loan is up to $2 million, but applicants can get an immediate $10,000 advance 3 days after applying.
Paycheck Protection Program:
Available through lenders to cover up to 2 months of payroll costs up to $10 million for small businesses (less than 500 employees), 501(c)3 and 501(C)19 non-profits, certain food and hotel companies and self-employed or independent contractors who paid payroll taxes on employees. Repayment is deferred 6 to 12 months. Portion is forgivable is used to cover 8 weeks of payroll, rent, utilities or mortgage interest (reduced if staff is reduced during shutdown and not rehired after the 8-week period).
Available through lenders for small amounts, quick-hit loans available within 36 hours for immediate needs.
Tax Relief for Employers:
Tax credit to cover 50 percent of employer’s portion of Social Security taxes up to $5,000 per worker. Available to business of any size and 501(c) non-profits but not state or local governments.
Community Development Block Grants:
$5 billion in federal grants to state and local governments through the Department of Housing and Urban Development available in two phases within 30 and 45 days, partly dependent on a state’s number of COVID-19 cases. Funding must be used to benefit low- and moderate-income residents. Eventually will provide grants for tourism promotion during recovery period.
$454 Billion Emergency Stabilization Fund
Created by the Treasury Department and Federal Reserve to pump money into the economy system during COVID-19 shutdowns. Designed to help states and local governments suffering losses along with a broad array of for-profit and non-profit businesses through lending institutions.
$7.4 Billion for Airports and Tourism:
50 percent distributed among all commercial airports for purposes directly related to operating the airport. $100 million is available for general aviation airports.