As a result of the current economic situation, entities that own or lease hotels are eligible to apply for and receive a loan under a government assistance program. An example of this is the Paycheck Protection Program (PPP) in the United States. This program requires the hotel to meet certain eligibility requirements in order to apply, and the funds are restricted for specific uses such as labor costs, utilities, rent and debt payments. Under certain circumstances, all or a portion of the loan may be forgiven.
To help guide USALI users, the USALI Global Finance Committee came together to collaborate and issue their recommendations on the appropriate accounting treatment for the receipt of the loan proceeds and any forgiveness thereafter.
Please note: The guidance that was originally published on HFTP Connect is now a supplemental resource exclusive to those who purchase the USALI digital subscription. To access the committee guidance on government loan assistance during the Covid-19 pandemic, please refer to the USALI digital subscription page on the HFTP website to learn more and subscribe today.
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