While the American Hotel and Lodging Association (AHLA) said it supports “the underlying foundation” of the U.S. government’s $2 trillion stimulus bill, AHLA president and CEO Chip Rogers is calling the current legislation “unworkable for hoteliers.”

The AHLA takes issue with the fact that the bill caps Small Business Administration loans at 250% of average monthly payroll.

“This limit will not allow a business owner to meet both payroll and debt service obligations beyond an estimated 4 to 8 weeks,” said Rogers in a statement. “Consequently, it will result in furloughing the very workers the bill seeks to protect. Since the measure reduces debt forgiveness with any reduction in payroll, 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.”

“Covid-19 has been especially devastating for the hotel industry,” he said. “Every day, more hotels are closing, and more employees are out of a job.”

On Monday, the AHLA and Oxford Economics released new data indicating that approximately 4 million U.S. hotel jobs have either been eliminated or are on the verge of being lost within the next few weeks.

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