Thursday, 9 Jul 2020

Travel Leaders says most franchises received no relief money

The vast majority of Travel Leaders Network members who have
applied for Small Business Administration (SBA) relief funds have not received any
money, according to a survey.

According to the survey, 36.7% of respondents applied for
the SBA’s Payroll Protection Program, and 94.8% of applicants said they had not
received funds.

Around 60% of respondents applied for Economic Injury
Disaster Loans, and 98.9% had not received funds. 

Additionally, the SBA was running a program in which it
would issue $10,000 in grant funds for EIDL applicants; 51% of Travel Leaders agencies
applied for the grant advance, and none reported receiving the funds.

Travel Leaders sent the survey to owners of agency locations
and received 472 responses.

The SBA has said it is unable to accept new applications because
funding has been depleted for the Economic Injury
Disaster and Payroll Protection programs. 

With those funds dried up, ASTA is lobbying for additional
funding.
Travel Leaders has joined those lobbying efforts.

Travel Leaders Network president Roger Block said that
funding is particularly important to travel advisors, who are typically paid in
commissions after the date of travel. That has severely affected cash flow.

“That’s why financial relief programs are very critical to
the long-term viability of some of the agencies in our network who have seen
revenue declines of 70, 80 and 90 percent in the past few weeks,” he said.

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