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AAHOA

Update for Wednesday, June 17

AAHOA is bringing you the latest information as it relates to COVID-19 and your business.

Help AAHOA help hotel owners by sharing this update with owners in your network, whether they're AAHOA Members or not. Turn to AAHOA's Facebook, LinkedIn, and Twitter accounts for the latest.

CONTENT FOUND IN THIS UPDATE

  • AAHOA Action Alert: Ask your representative to support business owners with CMBS loans
  • SBA and Treasury: New EZ Forgiveness and revised Full Forgiveness applications for the PPP released
  • U.S. Chamber: A detailed guide to PPP loan forgiveness
  • CMBS Loans: Experts discuss borrower negotiation process on new TreppWire podcast
  • YP Virtual Event: AAHOA Government Affairs team to talk advocacy updates, getting involved, and the PPP
  • Webcasts: Register now for next week's COVID-19 webcasts
  • McKinsey & Company: Companies need to make travel better, not just safer

AAHOA Action Alert: Ask Your Representative to Support Business Owners with CMBS Loans

Many of our members are experiencing challenges to meet loan obligations. While conventional lenders have been able to permit hoteliers to delay payments for a few months, borrowers with commercial mortgage-backed securities loans (CMBS) are largely required to make the payments on schedule without delay, or risk foreclosure.

These loans have strict terms and cannot be easily altered.

Congressmen Van Taylor (TX-03), Andy Barr (KY-06), Denny Heck (WA-10), and Al Lawson (FL-05) have recognized the challenges small business owners with real estate are facing during this unprecedented crisis. They have drafted a letter to Treasury Secretary Mnuchin and Federal Reserve Chairman Powell to raise awareness of this issue and to act urgently with targeted economic support to help ensure these small businesses can survive. We request that you send this message to your representative asking them to sign onto the CMBS letter.
 

SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program

Today, the U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees;
  • OR did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees;
  • OR experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

Click here to view the EZ Forgiveness Application.

Click here to view the Full Forgiveness Application.

 

U.S. Chamber of Commerce Releases a Guide to PPP Loan Forgiveness

Under the Paycheck Protection Program (PPP) created by the CARES Act, loans may be forgiven if borrowers use the proceeds to maintain their payrolls and pay other specified expenses. However, Congress recently changed the rules regarding loan forgiveness, which could lead to some confusion. To help clarify, the U.S. Chamber of Commerce has released a guide designed to help borrowers understand the process by which their loan forgiveness amount will be calculated and the overall approach of the loan forgiveness process.

Note: PPP borrowers must apply for loan forgiveness with the lender that processed the loan. You can find the most up-to-date information here.

 

CMBS Loans Experts Discuss Borrower Negotiation Process on New TreppWire Podcast

The TreppWire Podcast allows listeners to stay on top of all the latest happenings in the commercial real estate industry, as well as structured finance and banking. In a recent episode, Tammy and David Goldfisher from The Henley Group, advocates/experts in CMBS loan restructuring, shared some insight into the borrower negotiation process. With loan forgiveness being a priority for many in real estate, the pair also discussed what they are seeing on the ground. Listen here.

AAHOA Young Professional Hoteliers Virtual Event: Advocacy Updates, Getting Involved, and the PPP

Mark your calendars and join us at 4 p.m. on Wednesday, June 24 for AAHOA Young Professional Hoteliers Virtual Event: Advocacy Updates, Getting Involved, and the PPP. During this virtual event, the AAHOA Government Affairs team will provide you with steps on how to get the attention of your representatives so you can discuss the crucial issues you’re facing as a hotelier (including helpful communication examples);

how you can use the AAHOA Government Affairs team to your advantage; and a full breakdown of the recently enacted Paycheck Protection Program Flexibility Act of 2020. Make plans to join us now for this can’t-miss event where you’ll learn how you can get more involved in advocacy on the local, state, and federal levels, and for a better understanding of this recent and critical legislation.

 
virtual

McKinsey & Company: Make It Better, Not Just Safer – the Opportunity to Reinvent Travel

This desire to build memories, to connect with people, and to see new places drove 1.4 billion people to travel internationally in 2019. However, creating safer travel experiences is now paramount to protect this privilege in the post-COVID-19 era. Now is clearly a moment of crisis for the travel industry, with available seat miles on U.S. airlines being down 71 percent in April 2020 from the previous year and hotels at 29 percent occupancy globally, compared with 72 percent over the same period in 2019.

But though there are some signs that demand is going up, McKinsey & Company says in this article that travel companies are going to have to make travel better, not just safer, for stressed travelers.