Hotels with Pools should be eligible for USDA Stimulus Funds sign now

Tom Vilsack, Secretary of Agriculture
Dallas Tonsager, Under Secretary Rural Development
Judith Canales, Administrator, Business and Industry Program
Pandor Hadjy, Acting Deputy Administrator, Rural Business & Cooperative Service
Curtis Wiley, Chief of Staff to RBS Administrator, Rural Business & Cooperative Service


In spite of the limitations in the geographic coverage or the loan size, USDA B&I (Business & Industry) and SBA 7(a) programs appear to be the last resort financing vehicles currently available to most of the hoteliers.

B&I loans specially have been very popular for financing hotels in the rural areas as the program guarantee offers the lenders significantly reduced risk exposure. Many lenders sell the guaranteed portion in the secondary market thereby maintaining liquidity to re-lend again for new hotel loans. As an example, a lender can use $5MM to finance $25MM of hotel loans in multiple transactions by selling the guaranteed portion every time.

The American Recovery and Reinvestment Act of 2009 (ARRA) has made available additional funds to the USDA until September 15 of 2010. The B&I program has benefited greatly where the guarantee fee has been reduced to 1\% and the loan guarantee offered by the government has been increased from 80\% to 90\%. Now a lender can use the $5MM to finance $50MM of hotel loans in far more transactions. However, hotels with pools are classified as disqualified properties (Notice Vol 74 No. 141 of July 24th, 2009). It is then expected that the lenders would naturally be persuaded to avoid financing hotels with pools which probably constitute the majority of the hotels to take advantage of the 90\% guarantee while the ARRA funds are available.

With credit markets lack of liquidity, losing the B&I would be a devastating blow to the hospitality industry. The petitioners are kindly asking the Department of Agriculture for an immediate action to reverse the prior disqualification for the hotels with pools and to give the hoteliers who are bearing the brunt of this economic downturn a fair opportunity to benefit from a recovery program that was meant to comprise all legitimate business owners. Since the program is only available for one year, any delay in action would cause a significantly adverse and irreparable impact on the hotel industry.

Sign The Petition

Sign with Facebook
OR

If you already have an account please sign in, otherwise register an account for free then sign the petition filling the fields below.
Email and the password will be your account data, you will be able to sign other petitions after logging in.

Privacy in the search engines? You can use a nickname:

Attention, the email address you supply must be valid in order to validate the signature, otherwise it will be deleted.

I confirm registration and I agree to Usage and Limitations of Services

I confirm that I have read the Privacy Policy

I agree to the Personal Data Processing

Shoutbox

Who signed this petition saw these petitions too:

Sign The Petition

Sign with Facebook
OR

If you already have an account please sign in

Comment

I confirm registration and I agree to Usage and Limitations of Services

I confirm that I have read the Privacy Policy

I agree to the Personal Data Processing

Goal reached !
350 / 100

Latest Signatures

  • 31 December 2015350. Arvind P
    I support this petition
  • 27 December 2015349. Eric R
    I support this petition
  • 26 December 2015348. Mahesh P
    I support this petition
  • 24 December 2015347. Linda Kent
    I support this petition
  • 18 December 2015346. Jansen H
    I support this petition
  • 15 December 2015345. Samir B
    I support this petition
  • 13 December 2015344. Bharatpatel Washington
    I support this petition
  • 08 December 2015343. Prasant P
    I support this petition
  • 03 December 2015342. Ojash Nj
    I support this petition
  • 22 November 2015341. Supna Pd
    I support this petition
  • 07 November 2015340. Shraddha P
    I support this petition
  • 26 October 2015339. Divyesh P
    I support this petition
  • 15 October 2015338. Dnyse S
    I support this petition
  • 12 October 2015337. Hiral P
    I support this petition
  • 23 September 2015336. Chami R
    I support this petition
  • 23 September 2015335. Priya Brown
    I support this petition
  • 21 September 2015334. Chris W
    I support this petition
  • 21 September 2015333. Satish P
    I support this petition
  • 07 September 2015332. T Muralim
    I support this petition
  • 03 September 2015331. Donnie J
    I support this petition
  • 30 August 2015330. Ravi P
    I support this petition
  • 27 August 2015329. Dave P
    I support this petition
  • 21 August 2015328. Pragna P
    I support this petition
  • 10 August 2015327. Anil P
    I support this petition
  • 08 August 2015326. Anil P
    I support this petition
  • 28 July 2015325. Gary P
    I support this petition
  • 24 July 2015324. Kishore S
    I support this petition

browse all the signatures

Information

Rebecca StrongBy:
People and OrganizationsIn:
Petition target:
Department of Agriculture

Tags

No tags

Share

Invite friends from your address book

Embed Codes

direct link

link for html

link for forum without title

link for forum with title

Widgets