Subaru to suspend Indiana operations for one week
Subaru of Indiana Automotive will suspend production at its Lafayette plant next week “to further ensure the health and safety of associates and to adjust volume for market demand as a result of COVID-19,” the company announced Thursday.
Employees will receive full pay during the March 23-29 shutdown, the company said.
More than 6,000 people work at the facility, which produces about 410,000 vehicles each year.
SBA makes emergency loans available statewide to help businesses survive outbreak
The U.S. Small Business Administration has approved low-interest federal disaster loans in Indiana to provide working capital for businesses struggling during the coronavirus outbreak.
The assistance will be available statewide and in numerous border counties in surrounding states. The Coronavirus Preparedness and Response Supplemental Appropriations Act signed by President Trump authorized the SBA to offer an additional $50 billion in loans nationally to help small businesses during the pandemic.
Indiana became eligible for the SBA assistance after Gov. Eric Holcomb requested a disaster declaration for the state on Tuesday.
The loans are available to small businesses, private not-for-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises “that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020,” the SBA said.
The interest rate for the loans is 3.75% for small businesses and 2.75% for private not-for-profit organizations, with terms up to 30 years. Applicants may apply or learn more online.
In anticipation of the loans being offered, the Indy Chamber launched a Rapid Response Hub on Monday to direct small business owners to various resources.
State’s largest hotels consider closing
The owners of the 1,005-room JW Marriott Indianapolis and the 650-room Indianapolis Marriott Downtown are considering closing their doors temporarily as occupancy falls at hotels across the country into the single digits.
Bruce White, chairman of White Lodging, which owns the JW Marriott, told IBJ no final decision has been made. But he said “when you have occupancies of less than 5%, [closing] is certainly something that any owner would need to consider.”
Mike Wells, president of REI Investments, which co-owns the Indianapolis Marriott Downtown with White Lodging, said the situation is unlikely to change until the government again encourages citizens to move freely. He said he thinks other hotels also are considering closing.
The decisions by local hoteliers comes as the French Lick Resort announced it would close and at least two downtown Chicago hotels said they would close in response to the pandemic.
Hospitality group asks Holcomb to defer restaurant, hotel taxes
The Indiana Restaurant & Lodging Association on Wednesday sent a letter to Gov. Eric Holcomb and state legislative leaders asking them to consider deferring taxes on the restaurant and lodging industries for the next year.
Businesses still would be on the hook for taxes they owe they year but would be able to pay them one calendar year later interest-free. They would apply to personal and real property taxes, state and local sales taxes, and innkeeper’s and food and beverage taxes.
The proposed real and personal property deferral would go into effect April 1, while the sales-related tax deferral would apply immediately.
The measures are among several the group said might help soften the blow to tourism- and dining-focused businesses across the state—particularly in larger cities like Indianapolis.
Total spending nationally on transportation, retail, lodging and restaurants is expected to drop by $355 billion this year, or 31 percent, leading to the loss of 4.6 million jobs, according to the U.S. Travel Association.
Trump signs $100B rescue bill while proposing $1 trillion plan to stabilize economy
By a sweeping bipartisan tally, the Senate approved a $100 billion-plus bill to boost testing for the coronavirus and guarantee paid sick leave for millions of workers hit by it — and President Donald Trump quickly signed it.
By the time the measure became law Wednesday, the White House and lawmakers had already turned their focus to the administration’s far bigger $1 trillion plan to stabilize the economy as the pandemic threatens financial ruin for individuals and businesses.
Details on Trump’s economic rescue plan remain sparse—and it’s sure to grow with lawmaker add-ons—but its centerpiece is to dedicate $500 billion to start issuing direct payments to Americans by early next month. It would also funnel cash to businesses to help keep workers on payroll as widespread sectors of the $21 trillion U.S. economy all but shut down.
In a memorandum, the Treasury Department proposed two $250 billion cash infusions to individuals: a first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size.
The Treasury plan, which requires approval by Congress, also recommends $50 billion to stabilize the airlines, $150 billion to issue loan guarantees to other struggling sectors, and $300 billion for small businesses. The plan appears to anticipate that many of the loans would not be repaid.
Taken together, the administration plan promises half of the $1 trillion to families and individuals, with the other half used to prop up businesses and keep employees on payroll.
