Financial Programs Supporting Bus Companies Throughout COVID-19
During these unprecedented times, bus companies are leaning on federal and state financial programs to stay afloat until they can begin offering their services again. DC Trails is no exception to this, as we have temporarily stopped all tour and transportation services to comply with the current state-wide health and safety guidelines, putting our valued employees out of work for the time being.
Below we have provided details regarding the current financial programs, which our transportation company along with many others are turning to for financial relief during this difficult time.
Financial Programs to Combat COVID-19
- CARES Act
On the level of the Federal Government, the Coronavirus Aid, Relief and Economic Security Act is a $2 trillion stimulus package, which was instituted at the end of March to help the broad U.S. population through this unprecedented economic crisis. This Act includes numerous terms that would financially carry a variety of businesses, independent contractors and other entities through the pandemic with loans, grants and other relief programs.
- Payroll Protection Program
One of the major provisions under the CARES Act is the Payroll Protection Program, which is ideal for small bus companies, which are staffed with less than 500 employees, therefore qualifying as a small business. This program received $349 billion in low-interest loans from the Federal Government, encouraging small bus and tour companies to continue paying their employees along with property-related expenses such as mortgage and rent payments. This program was set to run for eight weeks; however, it was later extended to 24 weeks.
- Private lenders
One of the major issues that small businesses have faced since the Payroll Protection Program was released is that it is paid for by private lenders, often refusing to lend to those who were not previously clients of theirs, as this requires time-consuming background checks and payroll verification. Unfortunately, this has meant that many small businesses including tour and transportation companies are not eligible for PPP funding. Fortunately, bus drivers such as the employees who operate our fleet are able to separately apply for PPP funding from private lenders as independent contractors.
We at DC Trails sincerely hope that you are staying safe, and receiving the financial relief that you need to get through this worldwide crisis. Learn more about our services and chartered locations so that you are ready for your post-coronavirus bus adventure!