Sens. Susan Collins (R-ME) and Jack Reed (D-RI) are calling for the U. S. Department of Treasury to provide assistance and support to the motorcoach industry.
In a letter to Treasury Secretary Steve Mnuchin, Reed and Collins, who are the Chairman and Ranking Member of the Transportation Appropriations Subcommittee, respectively, outlined the need for the treasury department to provide the motorcoach industry with technical assistance and guidance on how to access some of the $454 billion to support lending programs as provided in the Coronavirus Aid, Relief and Economic Security (CARES) Act.
“The period of March through June is when many motorcoach companies typically earn at least 50 percent of their annual revenue. Schools, colleges, summer camps, and tourists are among the previously reliable customer groups that have completely disappeared since the onset of the COVID-19 pandemic,” the senators wrote. “We must ensure that the motorcoach industry is still there for our communities when this pandemic has passed. This important industry faces a long road to recovery and requires immediate assistance that is flexible and meets both its short- and long-term needs.”
The motorcoach industry typically provides 600 million passenger trips annually, amounting to a more than $15 billion industry, the senators said. But now, an estimated 36,000 vehicles are sitting unused.
According to the letter, the motorcoach industry needs guidance on how it can overcome some of its unique needs to qualify for funding.
“The CARES Act provided critical funding for the Department of Treasury and the Federal Reserve to implement loan programs that provide financial support to help industries bridge the coronavirus crisis. Title IV of the CARES Act appropriated $454 billion to support lending programs. The rules for these programs, however, do not fully recognize some of the unique challenges motor coach companies face, particularly the high level of capital investment needed to maintain vehicle fleets.”