Paycheck Protection Program Flexibility Act
Yesterday, the U.S. Senate passed H.R. 7010, Paycheck Protection Program Flexibility Act of 2020, by unanimous consent. This legislation passed the U.S. House of Representatives last week by a vote of 417-1 and includes a number of priorities we have been advocating for to improve the Paycheck Protection Program, including:
- Changing the forgiveness period for PPP loans from 8 weeks to 24 weeks;
- Extending the covered period for loans to December 31, 2020;
- Changing the restrictions limiting non-payroll expenses from 25% to 40%;
- Changing the loan maturity limit from 2 years to 5 years, and;
- Ensuring full access to payroll tax deferment.
These changes are a direct result of our national partner AHLA's ongoing lobbying effort and grassroots campaign. This critical piece of legislation recognizes the long road ahead for recovery in the hotel industry and the need for flexibility to retain employees and keep the lights on.
We appreciate all your efforts to support our industry during this time.
CMBS Loan Relief
AzLTA continues to work with AHLA to advocate for commercial mortgage-backed securities (CMBS) loan relief due to COVID-19. During a recent Senate Banking Committee hearing with Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell, Senator Thom Tillis (R-NC) expressed his concern for COVID-19's devastating impact on the hotel industry, and noted his concerns about CMBS loans.
Senator Tillis cited an AHLA survey finding that only 15% of hotel CMBS borrowers had received any kind of forbearance or relief. Secretary Mnuchin acknowledged these challenges and suggested that his department would work with Congress on the CMBS issue. Please know that CMBS loan relief continues to be a top association priority.