More operators to qualify for SBA loans: Travel Weekly

More operators to qualify for SBA loans

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WASHINGTON -- The National Tour Association said some 30 tour operators that applied for, but were deemed too large to qualify under old guidelines for the Small Business Administration's emergency disaster loans, now will be eligible for assistance under new SBA rules that gauge an operator's size on an annual income of $6 million in net, rather than gross, revenue. The revised rules will become final the beginning of January.

The SBA proposed the new rules in October. A 30-day comment period, which recently expired, followed.

The NTA, which lobbied for the rule change to assist operators in the wake of last year's terrorist attacks, said that adjusting the distinction from gross to net revenue would allow as many as 238 previously ineligible tour operators to apply for emergency loans, which carry a 4% interest rate.

"In the long term, this is going to prove to be a real benefit to tour operator companies that need help," said Jim Santini, NTA's Washington representative.

"This means NTA and other tour operators will have all of the benefits of a small business when seeking help from the government," Santini said, including an array of loans designated for minority- and women-owned businesses, if they qualify.

According to SBA figures, 137 tour companies received emergency loans totaling $15,045,800 between Sept. 11, 2001 and Nov. 1, 2002.

The move to adjust the income requirements for tour operators follows a similar action in March by the SBA, when it raised the small business size standard from $1 million in annual revenue to $3 million to allow more travel agencies to qualify for loans and other assistance after ASTA lobbied for the rule change.

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