The American Hotel & Lodging Association (AHLA) has called the US government’s $2 trillion relief bill “unworkable for hoteliers.” The AHLA takes issue with the fact that the bill caps Small Business Administration loans at 250% of average monthly payroll. Chip Rogers, CEO, said the limit will not allow a business owner to meet both payroll and debt service obligations beyond an estimated 4 to 8 weeks.


Consequently, he said, it will result in furloughing the very workers the bill seeks to protect. Since the measure reduces debt forgiveness with any reduction in payroll, said Roger, hoteliers would be forced to use the entire loan amount on payroll at the expense of debt service. If a hotelier cannot make debt payments, the business will go under and the jobs are lost. The AHLA is pushing the House to amend the bill, with Rogers urging that legislators move “swiftly.”