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HAI Members: Two Important Financial Resources for COVID-19 Relief

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the US government is providing up to $25 billion for loans and loan guarantees for passenger air carriers, Part 145 repair stations, and ticket agents/brokers. The Act also authorizes up to $349 billion for job retention and certain other expenses as part of the Paycheck Protection Program.

HAI encourages its US members to take advantage of this government assistance. Below are explanations of the two program and links to forms and procedures.

Payroll Support for Air Carriers
On Tuesday, March 31, 2020, the US. Department of the Treasury published resources to assist eligible air carriers in applying for payroll support to enable the continued payment of employee wages, salaries, and benefits and for loans pursuant to the CARES Act.

How to Apply. Applicants may submit their materials to [email protected]. In the coming days, the Treasury Department will also provide a web-based form for application submissions. In the meantime, please refer to these Treasury Department guidelines and application procedures for payroll support to air carriers.

Please Hurry. The timing of your submission will affect how your application is handled. Apply by 5:00 pm EDT on April 3, 2020, to receive fast-track approval for your payroll support application.

Applications received after 5:00 pm EDT on April 3 will be considered but may not receive approval as quickly. Applications received after 11:59 pm EDT on April 27, 2020, may not be considered; however, the Secretary of the Treasury may, at his discretion and subject to the availability of funds, consider such applications for approval.

 

Paycheck Protection Program

The US Small Business Administration’s Paycheck Protection Program provides US small businesses with funds to pay up to eight weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Fully Forgiven. Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to the likely high participation, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if the full-time headcount declines or if salaries and wages decrease.

All Small Businesses Eligible. Small businesses with 500 or fewer employees are eligible, including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees are eligible in certain industries.

When to Apply. We encourage you to apply as quickly as you can because there is a funding cap. Below are the dates when this program will open:

  • Small businesses and sole proprietorships can apply beginning April 3, 2020
  • Independent contractors and self-employed individuals can apply starting April 10, 2020.

How to Apply. Complete this form to apply for a loan through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should also consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. Visit sba.gov for more information about the Paycheck Protection Program.

 

Additional Resources for HAI Members

HAI has provided a host of COVID-19 resources on its members-only Legislative Action Center, including overviews and detailed summaries of the relief packages and other helpful information





Created 126 days ago
by jhadmin

Tags CARES Act HAI
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