Dear [Representative/Senator] ____________________,
As your constituent, I’m [calling/writing] to ask that the following crucial improvements be made to the CARES Act to support the people and businesses in the travel and business events industries.
Under Title I
Expand the Sec.1102(a)(D)(iv) “Business Concerns with more than 1 physical location to include other severely impacted industries, including 71 (arts and entertainment) and 44-45 (retail trade).” These industries have been severely hurt by closures and lack of customers related to public health restrictions.
Allow all tax-exempt organizations under Section 501(c) of the tax code to apply for SBA interruption loans under Title I, including 501(c)(6) and 501(c)(7) organizations. Non-profits in travel and tourism, particularly convention centers and destination marketing organizations that rely on hotel and room taxes, have been particularly hard-hit.
Allow the maximum loan size for SBA interruption loans to be based on four times the cost of payroll, rent, and mortgage interest, up to $10 million; and increase appropriations for the program to $500 billion to allow for such a change. Increasing the amount to $500 billion provides parity with the Treasury Department program for larger businesses, since small businesses are particularly impacted and equally important to the overall economy. Increasing the maximum loan amount from 2.5X to 4X the monthly average payroll amount is necessary to provide support for small businesses that will continue to face prolonged revenue and customer reductions due to public health measures.
Under Title IV
Lending enabled through Section 4003(b)(4) should be made with the same terms and conditions as loans made under Title I (SBA interruption loans), including no collateral requirements. Businesses suffering from the worst of this economic crisis should have more lenience in collateralization to ensure they are not required to offer up everything that’s left in order to qualify for assistance.
I urge you to incorporate the requested modifications in the CARES Act.
[Name, Address, Phone Number, Email]