On Wednesday, Congressional leadership and the Trump Administration came to arrangement and unveiled the text of a significant $2 trillion coronavirus aid package deal, the Coronavirus Assist, Reduction, and Economic Protection (CARES) Act. Though it is expected to pass both equally chambers of Congress and be signed into regulation by President Trump in the coming days, it is doable that added alterations could possibly be created.
For the time getting, provisions of the CARES Act that will give aid to the travel company market, its employees and impartial contractors (ICs) include things like:
- Travel Agencies Qualified for Airline Economic Stabilization Financial loans ($25 billion) – Beneath the bill, the Treasury Secretary is licensed to make up to $25 billion in financial loans, financial loan ensures and other investments in help of passenger airlines, “ticket agents” (the statutory time period for travel companies) and other connected aviation companies.
- Compact Business Interruption Financial loans/Paycheck Protection System ($349 billion) – Beneath this new U.S. Small Business Administration (SBA) financial loan system, financial loans of up to $10 million will be available to U.S. companies less than the current SBA dimensions criteria ($22 million in once-a-year income) or with 500 or fewer employees. Independent contractors and the self-used are qualified. There are no collateral or personal guaranty necessities for these financial loans. The portion of these financial loans that addresses the business’ payroll, house loan, lease or utility fees from February fifteen to June 30 may well be qualified for forgiveness in whole or in section.
- Economic Stabilization Financial loans for Seriously Distressed Sectors ($425 billion) – Under the bill, the U.S. Treasury Division would be licensed to extend lower- or no-fascination financial loans and financial loan ensures to U.S. companies 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 obtained adequate economic aid in the sort of financial loans or financial loan ensures presented less than this Act,” indicating that companies could not also utilize for the new SBA system (see over).
- Unemployment Added benefits for the Self-Employed – The CARES Act would also provide up to 39 weeks of unemployment insurance policy positive aspects to folks not in any other case qualified for standard unemployment compensation (like the self-used and those who have fatigued their standard positive aspects).
“The coronavirus pandemic has proved to be the largest obstacle at any time confronted by ASTA and its customers,” mentioned Zane Kerby, president and CEO ASTA. “Over the previous several weeks, we have labored hand-in-hand with our thirteen,000 customers to secure the most total of aid for the travel company local community in this package deal. The simple fact that travel companies are incorporated in the airline help portion of the bill is a substantial earn and suggests that Congress heeded our connect with to include things like our customers in any qualified travel market aid.”