Here's How the 880-Page COVID-19 CARES Act Supports the Travel Industry

Businesses and individuals should find economic relief, but more will be needed, according to the U.S. Travel Association.

The COVID-19 CARES Act, signed into law on March 27, includes sweeping provisions for economic relief in the travel and tourism sector, thanks largely to the advocacy efforts of the U.S. Travel Association. Aid is available not only to major corporations, but to small companies, independent business owners and affected employees.

Making sense of the 880-page document, however, can be yet another challenge to overcome. U.S. Travel's COVID-19 CARES Act resources page, which includes a four-page summary with commentary for our industry, is a good place to start.

Highlights of the CARES Act

In addition to a helpful guide for eligibility, U.S. Travel's resources page provides an overview of the aid available to the travel and tourism industry.

• $377 billion in loans and loan forgiveness for small travel businesses
The bill provides small travel businesses (with 500 employees or fewer), self-employed individuals, and 501(c)(3) nonprofits with enhanced and expedited Small Business Administration loans, which will be made available quickly through community banks. Loan recipients can receive tax-free forgiveness on a portion of the loan, equal to eight weeks of payroll and other expenses.

• $454 billion in federally backed financial assistance for impacted businesses
The bill provides $454 billion through the Treasury Department and Federal Reserve to assist impacted travel businesses and governmental entities through secured loans, loan guarantees and other financial measures. The broad eligibility under this program ensures that any impacted organizations can access a liquidity lifeline to keep workers employed and stay afloat through the worst months of this crisis.

• Tax relief to mitigate losses and allow businesses to pay employees and continue operating
The bill allows affected businesses to temporarily defer tax liability, access an Employee Retention Tax Credit, delay or eliminate estimated quarterly tax payments and filings deadlines, and allow for a carryback of the Net Operating Loss (NOL) Deduction.

• Grants for tourism businesses and airports
The bill provides $10 billion in airport grants to support vital operations and provides $6.5 billion in Community Development and Economic Development Administration grants for economic injuries caused by COVID-19, including in the tourism industry.

More aid will be needed

"We expect we'll really be needing additional relief as we move forward, and we will be continuing to seek solutions," said Tori Emerson Barnes, U.S. Travel's executive vice president of public affairs and policy, during a virtual overview of the CARES Act for industry members.

"We are also collecting important stories that we can share with government officials," she added. "We'll be coming back to you all again…as we engage with Congress to seek additional clarification, expedited guidance and relief."

Accessing the promised relief might prove difficult, Barnes cautioned, and U.S. Travel can be helpful resource. "If you're getting stuck within the system, please do not hesitate to reach out."

Barnes concluded the information session with words of encouragement: "I know it is an incredibly difficult time, especially for those who are on the front lines. Our industry has really been hit so, so significantly. Please know that we're here 24/7 to help you navigate through this challenging time."

Source:  Northstarmeetingsgroup.com