America’s Hotel Owners Welcome New EIDL Enhancements
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.
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.”
Tomorrow, September 10, at 1:00 PM EDT, AAHOA will host a webinar about the updates to the EIDL program. A panel of SBA officials will discuss the changes and field questions from participants. To register for the webinar, click here.
AAHOA is the largest hotel owners association in the world. The nearly 20,000 AAHOA members represent almost one in every two hotels in the United States. With billions of dollars in property assets and hundreds of thousands of employees, AAHOA members are core economic contributors in virtually every community. AAHOA is a proud defender of free enterprise and the foremost current-day example of realizing the American dream.