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3 Stories to Start Your Week: June 28, 2021

Restaurants Rejected: SBA Cancels Some Applicants of RRG

Last Wednesday, the SBA issued a number of RRG cancellation letters, followed later that same day by rejection letters to previously accepted applicants of the Restaurant Revitalization Grant (RRG). Whereas previous faulty rejection letters from the agency were handled accordingly by the SBA, this third notice only stated that “the award cannot be approved due to an ineligible business type or other related reasons.”

Earlier last month, conservative groups in Texas and Tennessee filed a lawsuit against the SBA on the basis of racial and gender discrimination; the pending litigation on these claims are likely at fault for the SBA’s forced halt on grant distribution.

Small businesses that applied for the program early remain in limbo, still awaiting funding. The SBA has not yet commented or provided guidance on the issue.

Stimulus Still Coming, #4 on the Way?

The IRS is still steadily distributing stimulus checks as per President Biden’s American Rescue Plan. Last week’s latest distribution of 2.3 million payments has arrived just in time for some struggling taxpayers; several states will be cutting off enhanced unemployment benefits as soon as early July. With over a year of extended COVID-19 relief for unemployment coming to an end, some Senators have come together to sign a momentum, requesting a fourth round of stimulus payments.

It’s unlikely that we will see another round of stimulus payments, but those in need can look forward to relief in the form of several tax breaks established under Biden’s American Families Plan.

Airline Marketing is Taking Flight

C-Suite executives within the airline industry have been carrying out extensive marketing strategies to get travelers back on flights. It’s been met with great success, according to Delta Airlines CEO, Ed Bastian, who said the company “Has led the charge with 60 media interviews in 2020 and 70 so far this year, compared with about 20 in 2019.”

The key to promoting air travel is providing consumers with accurate knowledge that advises towards the safety of air travel and helps them feel comfortable with doing so. Jet Blue Airways board member, Ben Baldanza, says “Until the industry is really back, there is going to be this thirst for the most real-time information we can get.”

Despite the progress, the airline industry is not yet back to pre-COVID-19 norms. Several airlines remain understaffed; American Airlines recently canceled hundreds of flights in July due to crew shortages. One statistic records that the travel and leisure industry accounted for 39% of all US job losses from COVID-19.

Plus, with government-regulated travel restrictions still in play, international travel remains more of a financial hindrance than a money grab.

Thoughts? Give us a call at 516-541-6549, visit our website for more news updates, and don’t forget—have a great week!

 
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