Just one example from the hospitality vertical
Just hanging on to the business they have is a priority for many. The American Hotel & Lodging Association (AHLA) said this week that 83% of hotel debt borrowers have asked for debt forbearance or some other form of payment deferral from their lenders.
And, according to a membership survey they conducted April 28 to 30, more than 95% of the more than 900 respondents have applied for Paycheck Protection Program (PPP) loans and/or Economic Injury Disaster Loans (EIDL), the emergency loans first approved by the CARES Act and added to soon after the initial funding was exhausted.
The AHLA said 79% of the applicants were approved for one or both and that the median loan applied for was $150,000. The PPP loan, specifically, is aimed at allowing employers to keep staff on the payroll.
Hanging on for a recovery
But, the survey found, more than 50% of those AHLA members said that wasn't enough to rehire their staff. That's because the loans only cover eight weeks of payroll, and recovery is expected to take much longer, especially since many hotels are still closed by government order.
That critical conundrum, of course, is the bane for millions of businesspeople across the country right now. Most laid-off workers expect to be rehired in the coming months, a sign of optimism that the collective response that derailed the economy could help set it aright when the coronavirus coast is clear enough.