U.S emergency bill could support home-rental start-up Airbnb hosts

As an unprecedented move, the U.S. Senate recently granted a massive stimulus package aimed at supporting the country’s economy and industries through the coronavirus outbreak. The USD 2 trillion emergency bill, however, could also aid companies like Airbnb Inc. that are hard hit by this pandemic.

Sources cite that Airbnb reportedly thanked lawmakers for addressing those who are dependent on revenue earned by giving temporary accommodation via the company’s website. Airbnb claims that hosts with family members or hosts diagnosed with coronavirus disease could apply for unemployment assistance with this announcement.

Moreover, hosts deemed sole owners which depend on Airbnb income could be eligible for minor business loans to cover the interest on rent, mortgage payments, and utility bills if their businesses are affected by the outbreak. Also, hosts who use independent contractors to service or clean properties can avail these small loans to pay their workers.

Reportedly, Airbnb had held a phone meeting with bankers to extend existing USD1 billion debt facilities. The company’s existing debt facility was approved in the year 2016 and was led by JPMorgan, Morgan Stanley, Bank of America Corp, Goldman Sachs, Barclays, and Citigroup Inc.

Reports claim that the travel industry has been hard hit as governments across the globe are imposing restrictions on movement to reduce the spread of coronavirus, which has infected more than 450,000 people across the world and led to over 21,000 deaths.

To reduce the impact in the U.S economy, an enormous federal aid bill that received bipartisan agreements comprises momentary unemployment benefits for people and gig workers during this pandemic.

To survive in this global pandemic, United States companies are also borrowing money to support their cash flows as the fallout from the COVID-19 pandemic indicates a prolonged downturn.

Source Credit - https://money.usnews.com/investing/news/articles/2020-03-25/airbnb-says-us-coronavirus-stimulus-bill-could-offer-its-hosts-some-relief