Protecting Business Owners
The letter highlights needed protection in four areas:
- businesses, non-profit organizations, and educational institutions that work to follow applicable public health guidelines against COVID-19 exposure claims;
- healthcare workers and facilities providing critical COVID-19-related care;
- makers, donors, distributors, and users of certain personal protective equipment (PPE) critical to the COVID-19 response; and
- public companies targeted by unfair and opportunistic COVID-19-related securities lawsuits.
Paycheck Protection Flexibility Act
Today, the U.S. House of Representatives overwhelmingly passed the Paycheck Protection Flexibility Act.
This bipartisan legislation would enhance the PPP with several hotel industry priorities, including:
- Allowing forgiveness for expenses beyond the eight-week period
- Striking the restrictive 75%/25% rule on loan proceeds
- Expanding the loan term past two years
- Ensuring full access to payroll tax deferment for businesses that take PPP loan
- Extending the June 30 rehiring deadline
Federal Per Diem Rate Freeze
H.R. 6995, bipartisan legislation introduced by Representatives Bill Posey (R-FL) and Charlie Crist (D-FL) preserves federal per diem-reimbursements rates from being set below a certain level. The legislation is critical to ensuring that rates reflect the current economic conditions while supporting government travel, an important driver of hotel business.
Pandemic Risk Insurance Act of 2020
Rep. Carolyn Maloney, Chairwoman of Oversight and Government Reform, has introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA). This legislation would create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. Like the Terrorism Risk Insurance Act (TRIA), the federal government would serve as a backstop to maintain marketplace stability and share the burden alongside private industry. It provides for the following:
- Requires insurance companies to offer business interruption insurance policies that cover pandemics, and
- Creates a Pandemic Risk Reinsurance Program to cover losses and protect our economy in anticipation of a resurgence of COVID-19 and future pandemics
This legislation is a priority for our national partner AHLA and an important step in Congress's prevention efforts against economic losses from future pandemics.