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On Monday evening, Senate Republicans unveiled a draft plan for a $1 trillion COVID-19 economic stimulus package called the HEALS Act. The House passed a $3 trillion relief package in May.  It is important to note that neither of these proposals will likely be enacted into law in their current forms.  Congressional leaders will be reconciling the differences over the next couple of weeks.   For hoteliers, these negotiations should hopefully provide additional relief and protection for their businesses.  Please click here to see AAHOA's letter to Congressional leaders outlining our list of priorities.  

AAHOA's leaders and team are working hard to ensure your voices are heard during this process.  It is also critical that you share your thoughts with your elected officials as well.  

Please click here to contact your Representative and Senators, urging them to support our industry priorities as they negotiate the next round of COVID-19 relief.  

We are optimistic that Congress will act quickly to resolve some of the outstanding challenges facing hoteliers because of COVID-19. We are fighting for you and your businesses.


Key Provisions in the HEALS Act

PPP Second Draw Loans: 

  • Provides $190 billion of committed and appropriated funds to support PPP and PPP Second Draw Loans. 

  • Defines eligibility for PPP Second Draw loans as small businesses that meet the applicable SBA revenue size standard, have no more than 300 employees, and demonstrate at least a 50 percent reduction in gross revenues. 

  • Includes a $25 billion set-aside for entities with 10 or fewer employees and a $10 billion set- aside for loans made by community lenders. 

  • The maximum loan size would equal 2.5 times average total monthly payroll costs, up to $2 million. Businesses that received a PPP loan may not receive another PPP loan that aggregates to more than $10 million. 

  • The 60/40 cost allocation for payroll and non-payroll costs to receive full PPP forgiveness continues to apply. 

PPP Improvements: 

  • Expands forgivable expenses to include covered supplier costs, covered worker protection expenditures, and covered operations expenditures. 

  • Allows borrowers to select a preferred 8-week period through 2020 to use the forgivable loan proceeds. 

  • Simplifies the forgiveness application process for smaller loans. 

  • Expands PPP eligibility to include certain 501(c)(6) organizations, including Chambers of Commerce and Destination Marketing Organizations 

7(a) Loans to Recovery Sector Businesses: 
  • Authorizes $100 billion in long-term, low-cost loans to recovery sector businesses, which include seasonal businesses and businesses located in low-income census tracts that meet the applicable SBA revenue size standard, have no more than 500 employees, and demonstrate at least a 50 percent reduction in gross revenues. 

  • Loan amounts would be available at up to twice the borrower’s annual revenues, not to exceed $10 million. The loan would have a 100% SBA guarantee and maturity of up to 20 years with a one percent fixed interest rate to the borrower. 

  • Waives the SBA’s credit elsewhere test and allows the borrower to defer loan and interest payments for the first 2 years. 

  • Allowable loan uses include working capital, acquisition of fixed assets, and refinancing existing indebtedness. 


Safeguard Businesses from the Threat of Abusive Litigation:

  • Establishes temporary rules to protect businesses from claims arising from COVID-19 exposure and the threat of litigation

  • Creates an exclusive federal cause of action for coronavirus exposure claims

  • Creates a safe harbor from liability if a business made reasonable efforts to comply with coronavirus standards and regulations in effect at the time of the exposure

  • Limits liability for products such as PPE and other safety precautions

  • Help those essential businesses that have remained open to stay open, and help other businesses to reopen safely and without fear so that American workers can earn paychecks

  • Provide uniformity and predictability for good actors



AAHOA Advocacy