The COVID-19 pandemic has touched nearly every country on the globe, and every industry has been affected. Since people are being forced to stay home, the hospitality industry has lost the biggest portion of their customers and seen their profits drop to all-time lows.The industry has been especially hard hit as travel bans and restrictions have been put in place around the country, and many others who are free to travel are afraid to. As people continue to comply with stay-at-home and shelter-in-place orders and attempt to practice social distancing, it’s believed that hotel occupancy will continue to be low for the months to come causing many hotel owners to worry about their future financial stability. The good news is that SignaCap is here to provide immediate relief to struggling hotel owners during the ongoing COVID-19 crisis.
Even if hotels are temporarily shuttered, operating expenses will still remain such as utilities, mortgages and payroll. Efforts to cut costs by closing down floors, stopping food service and laying off employees may not be enough to keep hotels afloat during the crisis. Debt also becomes especially worrisome and owners worry that they won’t be able to make their mortgage payments and will lose their businesses.
Small, franchised hotels are especially vulnerable as owners often don’t have the liquid capital to support a long period of low to no occupancy. Market research firm FRANdata reported in 2018 that of the nation’s nearly 33,000 hotels, 93% are franchised (Reported by Yahoo Finance).
In an attempt to aid business owners and individuals, the US Government has passed an unprecedented $2 trillion coronavirus relief bill. This bill, known as the CARES Act, includes a forgivable loan program for companies that have less than 500 employees. While this may sound like welcome relief, the stimulus program may not be enough for many. It is unclear whether or not the stimulus package will provide enough money to help in the face of continued, ongoing uncertainty in the hospitality industry. Additionally, it’s expected that the money could take up to 90 days to reach borrowers, which could not be fast enough for many owners who need relief now. In fact, the American Hotel & Lodging Association, which is the hotel industry’s trade group, spoke out against the bill, saying it was “unworkable.” (See this article from CBS News)
How SignaCap Can Help
In this uncertain time, Signature Capital stands ready to help embattled hotel owners make it through the crisis with their business intact. SignaCap can provide immediate liquid capital relief to allow hoteliers to meet their budget needs, avoid laying off workers, purchase supplies, and make utility and mortgage payments.
The process is fast and simple. You simply need to fill out an online application, wait for a loan advisor to reach out with offers for you (can be as fast as one day) and then you will receive your funds as soon as the same day. This is a welcome relief for business owners who need help now!
SignaCap’s dedicated advisors work with each applicant personally to tailor loans to exactly what you need – much appreciated in this time when we are all in such unique circumstances. They’ll match you with a variety of loan options from SignaCap’s nationwide network and you’ll be all set to weather the COVID-19 storm. Get in touch today to see what SignaCap can do for you.