ASTA Requests SBA Make Changes to Paycheck Protection Program

ASTA has responded to U.S. Small Business Administration's (SBA) request for feedback on its Paycheck Protection Program (PPP).

One of the changes ASTA is recommending is that loan forgiveness provisions be increased from eight to at least 12 weeks. The association is also suggesting that loan terms be increased to at least five years (as opposed to the current two). ASTA would also like to see that the non-payroll forgiveness cap be increased from 25 to at least 50 percent to allow for spending on non-payroll expenses such as rent, utilities and mortgage interest payments.

ASTA is seeking clarification on payments made to independent contractors as well to ensure that these payments are included as "payroll" under the PPP.

"While it will take years for the travel agency industry to recover fully from this crisis, we believe the steps outlined above taken together with additional enhancements to the PPP and other relief programs enacted by Congress in the coming weeks and months will help speed that recovery and put travel agencies in a position to serve existing and new clients once the economy rebounds," wrote Eben Peck, executive vice president, advocacy for ASTA.

ASTA is also advocating in Congress for changes to the CARES Act, asking for increases in funding and amendments to provide payroll support payments to ticket agents, among other requests.

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