While some travel agencies have been able to tap into small business loans offered under the U.S. federal coronavirus relief package, many were unable to secure aid before the program's available funds ran out, according to Travel Leaders Network.
About one-third of the 472 affiliate and franchise agency owners Travel Leaders Network canvassed had applied for loans under the U.S. Small Business Administration's Paycheck Protection Program, but 94.8 percent had yet to receive approval or funding.
The loans were made available through the U.S. Coronavirus Aid, Relief and Economic Security Act, passed late last month. The SBA on April 16 announced that it is no longer accepting PPP applications after the entirety of the $349 billion earmarked for the program in the CARES Act had run out. However, a new infusion of funding is expected, with the Senate on Sunday night nearing agreement on a plan to allocate an additional $310 billion to the PPP.
About $60 billion could be allocated to the SBA's Economic Injury Disaster Loan program. About 60 percent of respondents had applied for the SBA's Disaster Loan program and 98.9 percent of those applicants had not yet received funds or approval, while 51 percent had applied for the SBA Economic Injury Disaster Loan Emergency Advance program, and none had received the $10,000 advance available under that program.
According to the American Society of Travel Advisors, 98 percent of U.S. travel agencies have fewer than 500 employees, and thus are eligible for PPP loans. Larger agencies can tap into the $25 billion in CARES Act loans and grants provided for airlines and related entities, which explicitly include "ticket agents."