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Intuit QuickBooks hosted a webinar on May 6 called Connecting Small Businesses with Experts, featuring Senators Marco Rubio (R-Fla.) and Ben Cardin (D-Md.) as well as Luke Voiles, VP, Business Leader at QuickBooks Capital at Intuit.
Senator Marco Rubio (R-Fla.)
Small business owners addressed their concerns and sought clarification regarding the Paycheck Protection Program (or PPP, as we all know). The program, which began accepting applications on April 3 and has since received a second infusion of capital, was designed for businesses to keep employees on the payroll and provide some relief for rent and utilities for an eight-week period. The program has had its share of problems and successes.
Senator Ben Cardin (D-Md.)
Where the PPP stands
Both Senators noted that the brand-new program, which was part of the CARES Act passed in late March, was put together in a matter of weeks, and while it had some bumps along the way, it has provided funding (or has been approved) for approximately 4 million small businesses nationwide, as of May 6. In bipartisanship, however, they both agreed that more needs to be done.
“We're very pleased with the programs that we have provided under the CARES Act for small businesses. We got money out quickly, and we saved a lot of small businesses. It had problems on startup, there's no question about that, and we need to get the data to understand exactly how the monies have been distributed today. But one thing is clear to me is that our smallest of the small businesses need additional attention. They did not have the same type of banking relationships as the larger of the small businesses that were first to get the PPP,” said Cardin.
Eyes on forgiveness
With so many businesses now approved or funded through PPP, owners look for clear guidance on loan forgiveness. Although Congress wrote the eight-week period into the bill, the guidelines for the program’s implementation were through the Treasury Department—specifically the 75/25 split for payroll to rent, mortgage interest, and utilities, and the parameters of forgiveness. Treasury has not yet released full guidelines for how the program’s forgiveness will be interpreted.
“We may find that the June 30 deadline [for furloughed staff to return to payroll] is not the right cutoff date for someone. There may be some efforts to extend that as well, because of the geographic diversity and who’s shut down and who isn't, and the unique attributes of different industries. We need to be flexible about that moving forward,” said Rubio.
He added: “If the forgiveness is not fair, then the very intent of the law is gutted. This was never designed to loan money and have debt put on the backs of businesses that were struggling. It was designed as a way to deliver support for payroll to small business, and the only reason why there's a loan component to it is that that is the incentive to use it for payroll.”
More stimulus?
Congress is currently putting together a fourth package that is expected to include assistance for state and local governments, more aid for small businesses (especially for an extended period of payroll support), and additional help for individuals. Associations like the NLA, United Motorcoach Association, and American Bus Association are pressing Congress for additional industry-specific aid.
“There's going to be variation in industries. For example, I personally believe that tourism and hospitality, hotels, and to some extent restaurants were the first ones thrown into the crisis, and they're going to be the last ones that come out of it for a lot of different reasons out of their control. So that will be a factor to consider,” Rubio said about what additional payroll support might look like. “I continue to believe that hospitality needs to be treated differently from other industries because there's a lot of externalities that are out of their control from local restriction to international travel to consumer behavior.”
Cardin also addressed the issue of childcare as many schools, childcare facilities, and summer camps have been closed indefinitely and may be an impediment for employees to come back to work. Although the CARES Act did offer some immediate protections for those who had to leave their jobs due to COVID-19, whether it was for their own health or to care for a family member, Cardin admits that the issue is complicated and is something they are considering in the next package.
In closing, both senators recognized that Congress is still focused on containment, but at some point will have to shift toward the phase of recovery. They are cautiously optimistic, but admit that recovery could last well into next year.
The full recording of the webinar is available here.
[05.07.20]
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According to new research issued in late April by the Global Business Travel Association (GBTA), travel professionals see some signs of optimism and recovery on the horizon. The study found that most companies are planning a recovery for 2020 with one in three planning for a recovery within three months.
To understand the coronavirus’s effects on business travel, GBTA conducted its sixth poll among membership from April 17-22. GBTA received responses from almost 1,600 member companies worldwide—which is key to understanding those data. The virus has impacted the globe, but at different rates. Note: At the time of the poll, total U.S. cases of COVID-19 were below the 1 million threshold and deaths had not yet surpassed 50,000, according to CDC data (as of May 6: total U.S. cases are 1,193,873; total U.S. deaths are 70,802). View the entire poll results here.
“The global business travel industry remains at a standstill, but we are finally beginning to see some light at the end of this very long tunnel,” said GBTA CEO Scott Solombrino. “GBTA members are planning their post-coronavirus recovery plans and most expect to be operational in 2020. This is a positive sign. The majority of GBTA member companies expect domestic business travel to resume in the next two to three months and most expect employees will be willing to travel. We have waited a long time for there to be optimism around the pandemic in our industry, and it should continue to grow as we get closer to halting the spread of this disease.”
Among the poll’s key findings are:
- Most companies are creating a recovery plan in 2020. One-third (35%) of GBTA members say they plan for their company’s post-coronavirus recovery plan in three months or less, while a quarter (27%) say they plan for a post-recovery in six to eight months. In addition, only one in 10 are planning for recovery in 2021, while one in four (28%) report they do not know.
- Among GBTA members who report their company has canceled at least some domestic business trips, six in 10 (62%) say they expect domestic travel to resume in the next two to three months. One in five report they expect domestic travel to resume in the next six to eight months (18%) or are unsure (19%).
- GBTA European members (74%) are more likely than members based in North America (58%) to expect domestic business travel will return in two to three months. In addition, members based in North America (21%) are more likely to be unsure when domestic business travel will resume compared to members based in Europe (12%).
- Eight in 10 European members expect international business travel will resume in two to three months (33%) or six to eight months (47%). Two-thirds of GBTA members in North America expect international travel to resume in two to three months (26%) or six to eight months (38%).
- A majority of GBTA members (88%) expect employees will be willing to travel once restrictions are lifted. GBTA members from North America (90%) are more likely than members from Europe (83%) to expect their employees will be willing to travel after restrictions are lifted.
- Looking at what it will likely take GBTA members to feel comfortable with employees traveling for business, many information resources are perceived as being important including: a decline in new infection rates (92%), governments lifting travel restrictions or advisories (91%), guidelines or statements from public health agencies such as the WHO or CDC (90%), effective anti-viral treatments (89%), removing stay-at-home lockdowns (88%), a new Coronavirus vaccine developed and available to employees (85%), advice from a risk management firm/consultant (e.g., Worldaware or International SOS; 60%), and other companies allowing travel (49%).
- One in five GBTA buyer members note their company has reduced staff or laid off (21%), furloughed (21%), or cut employee salaries (20%) as a result of the coronavirus.
GBTA supplier member optimism about the industry’s path to recovery vary. One in five (19%) say they are more optimistic than they were last week, while six in 10 (57%) say they feel the same as they did last week. One-quarter (24%) feel more pessimistic about the industry’s path to recovery than they did the week prior.
- GBTA supplier members note bookings from corporate customers have remained the same (41%) or decreased (49%) in the past week.
Some GBTA members report their company does allow some essential travel. One-third (35%) say while their company has canceled or suspended all non-essential trips but allows some essential travel.
- GBTA member sentiment varies concerning the impact COVID-19 has had on the industry. When asked about layoffs/furloughs in the corporate travel industry, four in 10 feel the worst has already happened (42%) while an equal number feel the worst has yet to come (41%). GBTA members in North America are more likely to feel the worst has already happened when it comes to layoffs and furloughs (47%) compared to members based in Europe (30%).
- There is more consensus when thinking about canceled flights, with three in four (77%) GBTA members stating the worst has already happened compared to one in 10 (15%) who feel the worst is yet to come.
- Six in 10 (62%) GBTA members feel the worst has already happened concerning hotels suspending operations compared to one in four (26%) who feel the worst is yet to come. GBTA members based in North America (64%) are more likely to feel the worst has already happened regarding hotel suspensions compared to members based in Europe (53%).
- GBTA members are more pessimistic about revenue loss for travel companies. More than half (56%) feel the worst is yet to come in terms of industry revenue loss while one-third (29%) feel the worst has already occurred.
- GBTA member companies have not opened international (98%) or domestic (93%) travel as companies continue to cancel and/or suspend almost all business travel regardless of destination. In fact, almost all GBTA member companies (57%) report they have suspended or canceled all business travel across the board.
- Business travel remains halted across the globe. Companies continue to cancel or suspend almost all business travel regardless of country or region. GBTA members report their companies have canceled or suspended “all” or “most” business trips to:
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- China: 99% canceled or suspended
- Hong Kong: 99% canceled or suspended
- Taiwan: 99% canceled or suspended
- Other Asia-Pacific countries (e.g., Japan, South Korea, and Malaysia): 99% canceled or suspended
- Europe: 99% canceled or suspended
- Middle Eastern countries: 98% canceled or suspended
- Latin America: 97% canceled or suspended
- Canada: 95% canceled or suspended
- United States: 95% canceled or suspended
Methodology: GBTA conducted a poll of its members across the globe from April 17-22, 2020. An email invitation was sent to 5,638 travel professionals, and 1,557 responses were received.
Visit gbta.org for more information.
[05.04.20]
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The Global Business Travel Association (GBTA), the voice of business travel industry, has appointed current Executive Director and Chief Operating Officer Scott Solombrino as Chief Executive Officer following a unanimous vote by the GBTA Board of Directors.
GBTA CEO Scott Solombrino
Prior to taking an executive role with GBTA, Solombrino was the longtime president and CEO of Dav El/BostonCoach, a position he left in 2019 after 43 years. During his time as an operator, he had been a staunch force for the advancement of the ground transportation industry internationally, including through his work with the NLA.
“We are thrilled to equip our operating leader with the proper tools to guide the industry out of the COVID-19 worldwide pandemic," said GBTA President Bhart Sarin. "Now GBTA's principle spokesperson will have an even stronger position to advocate for the return of business travel.” GBTA represents professionals in all facets of business travel, from airlines and hotels to chauffeured transportation.
According to a press release from GBTA, the association has built upon its strengths by replenishing its financial reserves, refocusing advocacy efforts in the United States and Europe, and strengthening relationships with members and sponsors under Solombrino's dedicated leadership.
“One year ago, Scott offered the GBTA Board a vision of financial security, upscaling advocacy, and a laser focus on the member; it is because of that vision that GBTA is surviving the crisis and will be there for members when we emerge to rebuild our industry," said Dorothy Dowling, president of the GBTA Allied Leadership Council.
GBTA members can anticipate the Association will be better positioned to influence public policy and deliver positive outcomes for its buyers and sponsors.
“We are very excited to have Scott as CEO of GBTA," says Chairperson of the Board Christle Johnson. "Scott has brought us energy, strategy, sensitivity, and proven leadership; having discussed at length, benchmarked against peer organizations, and vetted by legal counsel, the time was right to make the appointment.”
Visit gbta.org for more information.
[05.06.20]