On December 22, 2020 Congress passed a year-end funding bill that included the COVID-19 Emergency Relief Package. The legislation provides access to relief programs and offerings that will help the travel industry, including:
- Paycheck Protection Program
- Employee Retention Tax Credit
- Shuttered Venue Operator Grants
- SBA Express Loans
- Economic Injury Disaster Loan Program
- Coronavirus Relief Fund
- Grants for airports and concessionaire relief
- Troubled Debt Restructuring
- Airline Payroll Support Program
- Unemployment Insurance
- Business Meal Expense Deduction
Paycheck Protection Program
The Paycheck Protection Program (PPP) provides forgivable loans of up to $10 million (1st Draw Loan) or $2 million (2nd Draw Loan) to eligible entities through banks and credit unions. The current application deadline for PPP loans is March 31, 2021. More details available via U.S. Department of Treasury or the Small Business Administration.
NOTE: From February 24 to March 9, only businesses with fewer than 20 employees can apply for the PPP.
- NEW: First Draw Borrower Application (Updated 3/3/21)
- NEW: Second Draw Borrower Application (Released 3/3/21)
NEW: The SBA announced that 501(c)(6) organizations should use the Lobbying Disclosure Act (LDA) to calculate “lobbying activities” for a PPP loan application. Read SBA’s FAQ page 27-28 for more details.
The Small Business Administration recently released new regulations for the Paycheck Protection Program:
- Top-Line Overview of First Draw PPP Loans (Released 1/8/21)
- Top-Line Overview of Second Draw PPP Loans (Released 1/8/21)
- PPP FAQ for Lenders and Borrowers (Released 3/3/21)
- Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide (Released 1/19/21)
- How to Calculate Maximum Loan Amounts for First Draw PPP Loans and What Documentation to Provide – By Business Type (Released 1/17/21)
- Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (Released 1/8/21)
- Procedural Notice - SBA Procedural Notice on Repeal of EIDL Advance Deduction Requirement (Released 1/8/21)
- Letter from the Administrator: SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns (Released 1/6/21)
- Interim Final Rule: Paycheck Protection Program as Amended by the Economic Aid Act (Released 1/6/21)
- Interim Final Rule: Paycheck Protection Program Second Draw Loans (Released 1/6/21)
SBA Express Loans
The cap on SBA Express Loans has increased from $350,000 to $1 million until October 1, 2021. More details can be found here.
Employee Retention Tax Credit (ERTC)
The refundable Employee Retention Tax Credit is available to employers through July 1, 2021. More details can be found here.
Shuttered Venue Operators Grant (SVOG)
The program includes $15 billion in grants to shuttered venues, to be administered by SBA's Office of Disaster Assistance. Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million.
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
Now Available: Shuttered Venue Operators Grants Frequently Asked Questions (January 27)
Economic Injury Disaster Loan (EIDL) Program
The Small Business Administration’s (SBA’s) Economic Injury Disaster Loan Program provide loans and/or grants to eligible employers to cover working capital needs. Borrowers can also request an increase to an existing EIDL when they log into their SBA EIDL account. Click here to apply for a loan.
Coronavirus Relief Fund (CRF)
Congress provided $150 billion to states and local governments through the Coronavirus Relief Fund (CRF). Funds have already been allocated to states, territories, tribal, and local governments for them to use at their discretion. To find information on how much each prime recipient received and has left to spend, please visit here.