In a win for tour operator companies and the National Tour Association, the U.S. Small Business Administration announces a change in…
In a win for tour operator companies and the National Tour Association, the U.S. Small Business Administration announces a change in regulations that will significantly increase the availability of loan and other SBA services to tour operators. Instead of the existing eligibility limit of $6 million in gross revenue, the change establishes a $6 million net revenue limit.
This change means hundreds of tour operators now have an opportunity to secure SBA support, said Jim Santini, NTA Legislative Counsel. A new door for financial support for many NTA operators has now been opened.
Shortly after the Sept. 11 terrorist attacks, NTA began working with the SBA. Initial efforts succeeded in the terrorist attacks being designated as a national emergency, which meant that the SBA emergency loan program triggered by the attacks were available on a national basis. Also, NTA successfully supported increased funding and several deadline extensions for the emergency program.
In the course of these efforts, NTA learned that a number of tour operator loan applications had been denied due to the $6 million gross revenue limit. The association went to work in seeking a change in the eligibility rules. As a result, the SBA announced a proposed rule change specifically for tour operators in October of last year. After a period of public comment and federal agency review, the proposed change has now been adopted, effective immediately.
Although the change will not be retroactive to previously denied loan applications, it will be applicable to future standard loan applications and emergency loans, as well as a range of other SBA services.
This success is NTA at its best. Many tour operators needed financial assistance through the SBA program, yet the six million dollar gross income ceiling created a barrier that failed to address that need. NTA members, staff and our Legislative Counsel working together, successfully removed that barrier, said NTA Chairman Charlie McIlvain, CTP.
Many of us stereotype federal agencies as being unwilling to listen, resistant to change, and slow to move, said Santini. The SBA blew these stereotypes out of the water. It was a pleasure to work with them on this initiative.
Santini also thanked the NTA Government Relations Committee and the association`s Grassroots Action Network. There`s no way this change would have occurred without the committee`s leadership, along with the invaluable information and advocacy put forth by our GAN members. This was a fabulous effort.
The National Tour Association is an organization of nearly 4,000 tourism professionals representing the packaged travel industry, which had a direct economic impact of $166 billion worldwide in 2001. NTA provides unsurpassed business opportunities, knowledge and information to businesses involved in tour operator packaged travel. NTA also serves as a consumer advocate through it code of ethics, stringent membership requirements and education.
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