As the recognized COVID-19 outbreak in the U.S. and the nation’s subsequent shutdown approaches its fifth week, hotels and other small businesses are seeing some relief ahead.
Federal financial aid is coming in the form of loans and grants from the Small Business Administration.
In the past week, hundreds of thousands hotel owners have filed applications with their SBA-approved lenders for the $350 billion Paycheck Protection Program.
But when hotel owners and operators will see the money is anyone’s guess as both banks and small-business owners report being overwhelmed with the filing process.
Meanwhile another group of hotel owners feels left out in the cold. These are investors holding billions of dollars in CMBS debt. Many debtors are in default with more expected as May and June mortgage payments come due with no financial intervention on the horizon.
In this episode, part 11 of Lodging Leader’s special report on the coronavirus crisis and its impact on the hotel industry, we explore the state of the SBA rescue package as well as what is or is not being done to help CMBS debtors save their businesses from default.
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