coronavirus resources for NYSH&TA MEMBERS
the below includes all information that has been sent to our 1,000 members via e-newsletters
regarding the coronavirus. This web page will be updated as we receive more details. if you have any questions, contact membership manager ryan burke at ryan@nyshta.org or call (518) 312-3812.
March 24, 2020
State Contracts
NYSH&TA is currently working with Empire State Development (ESD) and the Governor's office in coordinating the procurement efforts for hotels that may be willing to offer space via state contracts to help with the current crisis. Currently they are trying to streamline things, and a form is in the works, so stay tuned.
SBA Details - Answers to member questions asked recently
Right now, Small Business Administration (SBA) loans are available, but there are some questions surrounding them. There was a session held Friday on some of the details and we wanted to share them with NYSH&TA members.
The list of eligible businesses that can apply for the Economic Disaster Loan is lengthy, and different industries have different maximum thresholds to be considered a “small business”. The maximum number of employees for hotels and bed and breakfasts is 1,500, while the maximum average annual receipts is $32.5 million for hotels and $7.5 million for bed and breakfasts. The only excluded industries are agricultural, religious and charitable organizations and businesses involving gaming, such as casinos.
What is the SBA’s Economic Disaster Loan? This is the SBA’s first response to the COVID-19 Pandemic and the impact it is having on small businesses in the country. The SBA can deploy this tool without any further state or Federal legislation. Once a county has been designated a disaster area, the SBA can start providing funds to small businesses in that area. The SBA will probably add support to the Disaster Loan program, but any potential legislation is speculative at this point.
What is an Eligible Business? You must be physically located in a declared disaster county (all counties in NYS are on the list, and your business must have suffered working capital losses due to the declared disaster). As of today, all New York, Connecticut and New Jersey counties are included in designated disaster areas. You must also be a small business as designated by the SBA size standards, which depending on the type of business could be defined as a maximum of 250 to 1,500 employees, and have up to a maximum of $38.5 million of average annual receipts. Most major industries are included such as, hospitality and tourism, recreational industries, manufacturing, rental property owners, wholesale suppliers, utilities, healthcare and professional services. The only industries that are ineligible include agricultural, religious and charitable organizations, and businesses that involve gambling, such as casinos and racetracks.
What Does the Disaster Loan Provide? The SBA Economic Disaster Loan is a working capital loan. The maximum loan size is $2 million dollars and the funds can be used to cover overhead expenses, payroll, fixed debts of the business, accounts payable, etc. The Loan cannot be used for the consolidation of existing debts of the business, or for personal losses or expenses. The amount awarded is based on your estimated losses, which will be determined from the historical revenues and expenses of the business. The revenues as reported from both your tax return and monthly format, and your expenses as reported on your tax return. The loan has very flexible and beneficial terms and is intended to assist small businesses and not become an overburdensome component of your business financials. The interest rate on the Economic Disaster Loan is 3.75%, with repayment terms extending out thirty years, as determined at the time the loan is awarded to the recipient. The Disaster Loan payments are deferred for six months following disbursements. Loans of less than $25,000 do not require collateral, while those over $25,000 do, although the SBA has indicated it will be flexible regarding this requirement.
What is the Approval Criteria for the Disaster Loan? The main approval criteria for the Disaster Loan is that the business will be capable of making repayments on the Loan. It is assumed that the business will reopen and resume operations following the end of the Pandemic. The SBA will also look at past and current performance on federally guaranteed loans in evaluating the applicant for approval. If the business has failed to make payments on other federal loans, the business is not be eligible for the SBA Disaster Loan.
What can the Disaster Loan be used for? The Disaster Loan can be used for any legitimate business expense, including overhead expenses, insurance, payroll, fixed debts (i.e. mortgage loan payments), etc. The Disaster Loan cannot be used to consolidate the other debts of the business or pay for personal expenses. The business does not have to be closed or closing because of the Pandemic to be eligible for the Disaster Loan. If the business is still operating and suffering working capital losses, then it is eligible to apply. You need to demonstrate that the business has an economic injury or loss of revenue or an inability to open. For example, a restaurant that is only permitted to offer take out is probably suffering economic loss.
What is Application Process? The application can be filled out online at https://disasterloan.sba.gov/ela/. You need to select the correct application based on your entity’s business formation. In addition, you will need to include the tax returns for the business (if you have not filed for 2019 yet, the 2018 returns will be sufficient), which include all schedules, 1099s, etc. If you have been in business for less than one year and do not have a tax return yet then you will need to provide internal profit and loss statements for the time period that you have been in business. In addition, the application will ask the revenues of the business by month for 2017, 2018, 2019, year to-date on 2020, and forecasted revenues for the remainder of 2020, as well as a balance sheet for the business.
What Should be Included in the Additional Comment Section of the Application? This is an open narrative section to make your case for why your application for the Disaster Loan should be approved. In this section, you should include three to four sentences on how your business has been impacted by COVID-19 and description of injury. Although the reviewer understands what is happening to the US with regard to COVID-19, you should assume they are not completely up to date on what is happening in your State, and how many businesses have been closed due to executive orders. Also include in this comment section information on your ability to repay the Loan and your strategies for reopening your business once the Pandemic abates. This should also include strategies that you are utilizing for survival of the business.
Should you Apply for the Loan at this Time? This is specific to the current situation of the individual business. If you are not sure whether you should take the loan out at this time or whether you will need it at all, there is no harm in applying. There is no fee to apply and the first applications submitted will be the first acted upon by the SBA. Historically, the SBA takes 21 days to act on a loan application, but due to the events of the last week it will be a longer time period due to the amount of applications expected. While the SBA is reviewing your application, you can make the determination on whether you will really need the money. If you are awarded funds under the program you are not required to take them. In addition, there is no penalty to accept the funds and repay them early. Another reason to submit the application now is because as COVID-19 spreads throughout the country, many more counties will be designated disaster areas, and there is expected to be a massive influx of applications to the SBA. Also, as we expect there will be additional legislation regarding loans to assist businesses in the next few weeks, it is very likely that SBA will use the same portal for these programs, so your information will already be in the system, which ideally will make it easier and quicker for future loan applications.
*Matthew Hosford, attorney at Jackson Lewis P.C. Contributed to this article.
COVID-19 Federal Hotel Leasing Program
NYSH&TA has taken a leading role in connecting hotel properties with state and local officials seeking hotels for use during the coronavirus pandemic. See below for details on the federal hotel leasing program now underway through the US Department of Health and Human Services.
If you are interested in leasing your properties to the federal government, please fill out the following online form: https://forms.gle/PfQfqkHMPbF5KMGi6.
*Special thanks to the American Hotel & Lodging Association (AH&LA) for sending this information along for us to share with our members.
State Contracts
NYSH&TA is currently working with Empire State Development (ESD) and the Governor's office in coordinating the procurement efforts for hotels that may be willing to offer space via state contracts to help with the current crisis. Currently they are trying to streamline things, and a form is in the works, so stay tuned.
SBA Details - Answers to member questions asked recently
Right now, Small Business Administration (SBA) loans are available, but there are some questions surrounding them. There was a session held Friday on some of the details and we wanted to share them with NYSH&TA members.
The list of eligible businesses that can apply for the Economic Disaster Loan is lengthy, and different industries have different maximum thresholds to be considered a “small business”. The maximum number of employees for hotels and bed and breakfasts is 1,500, while the maximum average annual receipts is $32.5 million for hotels and $7.5 million for bed and breakfasts. The only excluded industries are agricultural, religious and charitable organizations and businesses involving gaming, such as casinos.
What is the SBA’s Economic Disaster Loan? This is the SBA’s first response to the COVID-19 Pandemic and the impact it is having on small businesses in the country. The SBA can deploy this tool without any further state or Federal legislation. Once a county has been designated a disaster area, the SBA can start providing funds to small businesses in that area. The SBA will probably add support to the Disaster Loan program, but any potential legislation is speculative at this point.
What is an Eligible Business? You must be physically located in a declared disaster county (all counties in NYS are on the list, and your business must have suffered working capital losses due to the declared disaster). As of today, all New York, Connecticut and New Jersey counties are included in designated disaster areas. You must also be a small business as designated by the SBA size standards, which depending on the type of business could be defined as a maximum of 250 to 1,500 employees, and have up to a maximum of $38.5 million of average annual receipts. Most major industries are included such as, hospitality and tourism, recreational industries, manufacturing, rental property owners, wholesale suppliers, utilities, healthcare and professional services. The only industries that are ineligible include agricultural, religious and charitable organizations, and businesses that involve gambling, such as casinos and racetracks.
What Does the Disaster Loan Provide? The SBA Economic Disaster Loan is a working capital loan. The maximum loan size is $2 million dollars and the funds can be used to cover overhead expenses, payroll, fixed debts of the business, accounts payable, etc. The Loan cannot be used for the consolidation of existing debts of the business, or for personal losses or expenses. The amount awarded is based on your estimated losses, which will be determined from the historical revenues and expenses of the business. The revenues as reported from both your tax return and monthly format, and your expenses as reported on your tax return. The loan has very flexible and beneficial terms and is intended to assist small businesses and not become an overburdensome component of your business financials. The interest rate on the Economic Disaster Loan is 3.75%, with repayment terms extending out thirty years, as determined at the time the loan is awarded to the recipient. The Disaster Loan payments are deferred for six months following disbursements. Loans of less than $25,000 do not require collateral, while those over $25,000 do, although the SBA has indicated it will be flexible regarding this requirement.
What is the Approval Criteria for the Disaster Loan? The main approval criteria for the Disaster Loan is that the business will be capable of making repayments on the Loan. It is assumed that the business will reopen and resume operations following the end of the Pandemic. The SBA will also look at past and current performance on federally guaranteed loans in evaluating the applicant for approval. If the business has failed to make payments on other federal loans, the business is not be eligible for the SBA Disaster Loan.
What can the Disaster Loan be used for? The Disaster Loan can be used for any legitimate business expense, including overhead expenses, insurance, payroll, fixed debts (i.e. mortgage loan payments), etc. The Disaster Loan cannot be used to consolidate the other debts of the business or pay for personal expenses. The business does not have to be closed or closing because of the Pandemic to be eligible for the Disaster Loan. If the business is still operating and suffering working capital losses, then it is eligible to apply. You need to demonstrate that the business has an economic injury or loss of revenue or an inability to open. For example, a restaurant that is only permitted to offer take out is probably suffering economic loss.
What is Application Process? The application can be filled out online at https://disasterloan.sba.gov/ela/. You need to select the correct application based on your entity’s business formation. In addition, you will need to include the tax returns for the business (if you have not filed for 2019 yet, the 2018 returns will be sufficient), which include all schedules, 1099s, etc. If you have been in business for less than one year and do not have a tax return yet then you will need to provide internal profit and loss statements for the time period that you have been in business. In addition, the application will ask the revenues of the business by month for 2017, 2018, 2019, year to-date on 2020, and forecasted revenues for the remainder of 2020, as well as a balance sheet for the business.
What Should be Included in the Additional Comment Section of the Application? This is an open narrative section to make your case for why your application for the Disaster Loan should be approved. In this section, you should include three to four sentences on how your business has been impacted by COVID-19 and description of injury. Although the reviewer understands what is happening to the US with regard to COVID-19, you should assume they are not completely up to date on what is happening in your State, and how many businesses have been closed due to executive orders. Also include in this comment section information on your ability to repay the Loan and your strategies for reopening your business once the Pandemic abates. This should also include strategies that you are utilizing for survival of the business.
Should you Apply for the Loan at this Time? This is specific to the current situation of the individual business. If you are not sure whether you should take the loan out at this time or whether you will need it at all, there is no harm in applying. There is no fee to apply and the first applications submitted will be the first acted upon by the SBA. Historically, the SBA takes 21 days to act on a loan application, but due to the events of the last week it will be a longer time period due to the amount of applications expected. While the SBA is reviewing your application, you can make the determination on whether you will really need the money. If you are awarded funds under the program you are not required to take them. In addition, there is no penalty to accept the funds and repay them early. Another reason to submit the application now is because as COVID-19 spreads throughout the country, many more counties will be designated disaster areas, and there is expected to be a massive influx of applications to the SBA. Also, as we expect there will be additional legislation regarding loans to assist businesses in the next few weeks, it is very likely that SBA will use the same portal for these programs, so your information will already be in the system, which ideally will make it easier and quicker for future loan applications.
*Matthew Hosford, attorney at Jackson Lewis P.C. Contributed to this article.
COVID-19 Federal Hotel Leasing Program
NYSH&TA has taken a leading role in connecting hotel properties with state and local officials seeking hotels for use during the coronavirus pandemic. See below for details on the federal hotel leasing program now underway through the US Department of Health and Human Services.
If you are interested in leasing your properties to the federal government, please fill out the following online form: https://forms.gle/PfQfqkHMPbF5KMGi6.
*Special thanks to the American Hotel & Lodging Association (AH&LA) for sending this information along for us to share with our members.
March 22, 2020
Sales Tax Filing Extended - Mortgage Payments Delayed
The Governor released two Executive Orders on 3/21 which require the following:
Executive Order 202.8: Directs NYS Department of Taxation and Finance to extend the filing period for sales and use taxes due March 20, 2020 (for the period ending February 29, 2020), for a period of 60 days.
Executive Order 202.9: Directs banks to delay mortgage payments for 90 days for any person or business who is experiencing hardship due to the COVID-19 Disaster. The order requires the Superintendent of the Department of Financial Services to promulgate emergency regulations to ensure that applications for the forbearance be widely available to consumers, and approved in all "reasonable and prudent circumstances."
March 20, 2020
Request for Designation as an Essential Business for Purpose of Executive Order 202.6
NYSH&TA is currently working with State Government to get hotels added to the list of “Essential” businesses.
Request for Designation as an Essential Business: https://esd.ny.gov/sites/default/files/Request%20for%20Designation%20Form_0.pdf
Request for Designation as an Essential Business for Purpose of Executive Order 202.6
NYSH&TA is currently working with State Government to get hotels added to the list of “Essential” businesses.
- Please click the link below and submit the reasons why we need this to happen.
- Forward this to anyone you can think of and encourage them to send in.
- Make this a priority and submit today.
Request for Designation as an Essential Business: https://esd.ny.gov/sites/default/files/Request%20for%20Designation%20Form_0.pdf
March 20, 2020
Executive Order
Right now, the thought is the new Executive Order will adhere to the same guidance as previous orders with regard to types of businesses that are essential. Hotels are currently not deemed essential under this order, however, we are working to have them included. Our guidance right now, as we sift through the new-every-minute details, is that you are providing shelter to many of the groups that are considered essential. Right now, we advise to stay open until we can provide clarification. You should not close and tell current guests to find other arrangements.
SBA Loans Available Statewide
Breaking news: Disaster declaration makes SBA assistance available in the entire state of New York. New York - NY 16346 - SBA Offers Disaster Assistance to New York Small Businesses Economically Impacted by the Coronavirus (COVID-19).
March 19, 2020
Webinar Recording Available - Coronavirus: Legal Considerations; Hospitality and Beyond
On March 17, NYSH&TA partnered with its lobby/legal counsel, Greenberg Traurig to bring a wide-ranging tourism industry webinar to its membership - Coronavirus: Legal Considerations; Hospitality and Beyond. A recording of this webinar has been made available to our members. Click here to access the recorded webinar.
Executive Order for PUBLIC AMUSEMENTS (Indoors and Outdoors)
Executive Order 202.5 requires that as of March 19th at 5:00 p.m., all places of public amusement (indoors and outdoors) must close. The order does NOT include public parks and outdoor areas of recreation. The mandate applies to amusement parks and locations that include the following (but is not limited to):
Click here to find more information.
New Legislation Enacted
New York Sick Leave, Disability, and Paid Family Leave Benefits for Employees Quarantined Due To COVID-19
New legislation was enacted in New York State to provide additional paid sick leave, as well as insurance benefits under paid family leave (“PFL”) and statutory disability (“DBL”) policies to employees subject to a mandatory or precautionary order of quarantine. Click here to read complete information provided by Greenberg Traurig.
NYS Labor Dept. Business Service Resource/Program
Following a call with the NYS Labor Department, NYSH&TA is providing details on a program that can help businesses facing downturns right now! The Shared Work Program offers businesses options to manage slowdowns, downturns, and situations with cash flow issues. Click here to find more information.
The tourism industry is facing an abrupt and unprecedented drop in hotel demand.
Please help us urge Congress to take urgent action to protect countless jobs and ensure that our small business operations and franchise owners can keep their doors open. This is your chance to tell elected officials your story and ask Congress to take immediate action. Click HotelsAct to engage with Congress in support.
STR Webinar – COVID-19: Hotel Industry Impact
NYSH&TA partner, STR, will be hosting a series of industry webinars discussing the impact of COVID-19 on U.S. and Canadian hotel performance. These webinars will be held every Thursday at 3pm EST with updates from the prior week. Individuals may register on their COVID-19: Hotel Industry Impact landing page (http://bit.ly/2QpNNFQ). This section of STR’s website also houses recordings from prior webinars and a number of press releases and articles from the past two months.
Webinar Recording Available - Coronavirus: Legal Considerations; Hospitality and Beyond
On March 17, NYSH&TA partnered with its lobby/legal counsel, Greenberg Traurig to bring a wide-ranging tourism industry webinar to its membership - Coronavirus: Legal Considerations; Hospitality and Beyond. A recording of this webinar has been made available to our members. Click here to access the recorded webinar.
Executive Order for PUBLIC AMUSEMENTS (Indoors and Outdoors)
Executive Order 202.5 requires that as of March 19th at 5:00 p.m., all places of public amusement (indoors and outdoors) must close. The order does NOT include public parks and outdoor areas of recreation. The mandate applies to amusement parks and locations that include the following (but is not limited to):
- Rides
- Water Parks
- Children’s play centers
- Funplexes
- Theme Parks
- Aquariums
- Zoos
- Fairs
- Arcades
Click here to find more information.
New Legislation Enacted
New York Sick Leave, Disability, and Paid Family Leave Benefits for Employees Quarantined Due To COVID-19
New legislation was enacted in New York State to provide additional paid sick leave, as well as insurance benefits under paid family leave (“PFL”) and statutory disability (“DBL”) policies to employees subject to a mandatory or precautionary order of quarantine. Click here to read complete information provided by Greenberg Traurig.
NYS Labor Dept. Business Service Resource/Program
Following a call with the NYS Labor Department, NYSH&TA is providing details on a program that can help businesses facing downturns right now! The Shared Work Program offers businesses options to manage slowdowns, downturns, and situations with cash flow issues. Click here to find more information.
- Allows businesses to reduce employees work schedule % - can be full-time, seasonal, and part-time. They can receive partial unemployment benefits to help make them whole.
- A business can be proactive and apply and get it set up so they are all set when they need it.
The tourism industry is facing an abrupt and unprecedented drop in hotel demand.
Please help us urge Congress to take urgent action to protect countless jobs and ensure that our small business operations and franchise owners can keep their doors open. This is your chance to tell elected officials your story and ask Congress to take immediate action. Click HotelsAct to engage with Congress in support.
STR Webinar – COVID-19: Hotel Industry Impact
NYSH&TA partner, STR, will be hosting a series of industry webinars discussing the impact of COVID-19 on U.S. and Canadian hotel performance. These webinars will be held every Thursday at 3pm EST with updates from the prior week. Individuals may register on their COVID-19: Hotel Industry Impact landing page (http://bit.ly/2QpNNFQ). This section of STR’s website also houses recordings from prior webinars and a number of press releases and articles from the past two months.
March 13, 2020
As NYSH&TA continues to monitor the novel coronavirus outbreak, there are two areas we received the most calls about this week, so we wanted to share some resources provided to us by our legal counsel at Greenberg Traurig. We have also scheduled a webinar for Tuesday, March 17 at 12:30pm (registration details to follow) that will cover the legal rights of NYS tourism businesses with regard to this ever-changing pandemic and its impact on business.
Hotel Contracts
Simply put, a force majeure clause is a contract provision that excuses a party’s performance of its obligations under a contract when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. These clauses are fairly common in contracts, yet in times like this, can prove to be a valuable resource in determining how to navigate performance when there are issues affecting performance that are outside the parties’ control. For details on this, other sources of coverage, and how they are triggered by actions of civil or military authority, click here.
Employer Rights
If an employer has no basis to believe that its employees are at risk of exposure to the Coronavirus, then the Occupational Safety and Health Act (the Act), does not impose any affirmative duties on an employer to engage in abatement or prevention efforts. Employers should be mindful that the Act prohibits retaliating against workers for raising such concerns, and employers are encouraged to work collaboratively with employees to address them. For more information, including how an infected employee should be reported, click here.
Large Gathering Guidance
Governor Cuomo directed that any gathering with 500 or more participants be cancelled or postponed. See details here.
March 10, 2020
Cleaning Protocol
This week we have fielded many calls on cleaning protocol for the hotel industry. Two of the largest industry partners in this space have websites dedicated to the issue (most NYSH&TA members use one of these two programs). NYSH&TA encourages all members to check out the links below to make sure you are doing everything you can to curtail the spread of the coronavirus. The Association is actively monitoring the impact on the tourism industry and will provide timely information as it becomes available.
In addition, New York State Department of Health is updating its information hourly and the Center for Disease Control is offering updates and specific information for businesses.
Cleaning Protocol
This week we have fielded many calls on cleaning protocol for the hotel industry. Two of the largest industry partners in this space have websites dedicated to the issue (most NYSH&TA members use one of these two programs). NYSH&TA encourages all members to check out the links below to make sure you are doing everything you can to curtail the spread of the coronavirus. The Association is actively monitoring the impact on the tourism industry and will provide timely information as it becomes available.
- P&G Professional: https://pgpro.com/solutions/coronavirus/
- Ecolab: https://www.ecolab.com/pages/coronavirus (click on the industry that relates to your business – hospitality, restaurants etc.)
In addition, New York State Department of Health is updating its information hourly and the Center for Disease Control is offering updates and specific information for businesses.
February 28, 2020
How NYSH&TA Members Can Address Concerns About Coronavirus
Dear Hospitality Professional,
We, like you, are concerned about receiving factual and timely information about the recent flu-like Coronavirus. CDC reminds us we are early in the global outbreak and the situation is still evolving.
So, it’s important that the New York State lodging community be informed and prepared to address a potential situation that sees more U.S. cases develop. There are several key resources we recommend you track to stay abreast of the latest Coronavirus information:
Due to the dynamic nature of this outbreak, please keep apprised of the situation daily and direct any public health questions to the authorities at your local health department or the Center for Disease Control.
Sincerely,
How NYSH&TA Members Can Address Concerns About Coronavirus
Dear Hospitality Professional,
We, like you, are concerned about receiving factual and timely information about the recent flu-like Coronavirus. CDC reminds us we are early in the global outbreak and the situation is still evolving.
So, it’s important that the New York State lodging community be informed and prepared to address a potential situation that sees more U.S. cases develop. There are several key resources we recommend you track to stay abreast of the latest Coronavirus information:
- Center for Disease Control Information: Situational summaries and frequently asked questions, among other resources.
- New York State Department of Health: Detailed information and Coronavirus alerts.
- Practice good hygiene, including frequent hand washing
- Stay home if feeling ill
- Avoid all non essential travel to the Wuhan area of China
- Conduct an incident assessment team meeting
- Develop, deploy communications to all key stakeholders, particularly employees
- Discuss concerns with third-party vendors and partners to know their plans
- Check availability of personal protective equipment supplies such as masks
Due to the dynamic nature of this outbreak, please keep apprised of the situation daily and direct any public health questions to the authorities at your local health department or the Center for Disease Control.
Sincerely,
Mark Dorr
NYSH&TA President
NYSH&TA President
