Today, the White House announced the Small Business Administration (SBA) has officially opened the expanded COVID-19 Economic Injury Disaster Loan (EIDL) program. As you know, AHLA has been working with the Biden Administration and the SBA for several months to enact changes to the Economic Injury Disaster Loan (EIDL) program to work better for hoteliers. In particular, the revisions include raising the loan caps to up to $2 million per loan and allowing for up to $10 million per aggregate businesses.
The expanded and improved EIDL program is a significant win for our industry to provide critical access to capital for hoteliers at a time when we need it most. The changes will allow hoteliers to access millions in loans to address commercial debt, apply for additional resources for more properties, and defer payments for up to two years.
The SBA instituted many of the changes AHLA recommended, including the following:
Raising the loan cap to $2 million per loan
Raising the aggregate loan cap to $10 million
Simplifying the affiliation rules
Allowing 24 months of deferred payment
Allowing use of funds to pay down prior commercial debt and to scheduled payments toward federal debt
For more information on the COVID-EIDL enhancements, please visit the SBA’s FAQs. This link shares more information about the application process and common challenges applicants face. Be sure to understand the requirements to ensure your application is filed timely.
AHLA encourages hoteliers to apply as soon as possible, and we will be hosting a webinar with theSBA’s Office of Capital Access on Friday, September 10, at 2pm EDT. Register here.
Our advocacy efforts on behalf of the industry continue to make a difference. The White House and SBA were particularly attentive to our discussions and developed these changes with hotels and our members in mind. AHLA will continue to work closely with the SBA and keep you updated on the latest information regarding this important program.
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