ORLA Proposed Relief Efforts

The concepts below represent priority items for Oregon’s hospitality sector. Our goals as an industry are focused on (1) retaining as many staff as possible in the current environment, (2) creating and preparing operational recovery plans, and (3) bringing as many Oregonians back on payrolls across the state as soon as financially possible.
TAKE ACTION NOW: We need legislators to know how many of you are impacted by the Governor’s shutdown of your business or businesses you serve.  Click the button to add your company name and location to our hospitality relief efforts. This is your opportunity to make your voice heard!
Commercial Rent Relief & Flexibility for Commercial Mortgage Backed Securities (CMBS)
Assist Oregon Hospitality businesses with retaining cash wherever possible to save jobs still on payrolls around the state.
  • Temporary suspension of ORS 91.090 (this statute provides that a commercial lease automatically terminates 10 days after unpaid rent is due unless the lease states differently).
  • Beyond the base ORS 91.090 default rights, temporary suspension of landlord's ability to default restaurant operating leases due to non-payment of rent during the closure order.
  • Temporary suspense of landlord's ability to cure technical default to 'reenter' the premises and lockout tenants during the closure order (many commercial tenants are panicking, knowing that they won’t be able to make April rent, and wondering if they need to pull property out before the Landlord seizes it due to non-payment).
  • Hundreds of millions of dollars in hotel loans are funded through Commercial Mortgage Backed Securities (CMBS) in Oregon alone. The industry must work in partnership with the Oregon Bankers Association, other state associations, and the Oregon State Legislature to access flexibility in mortgage payments with CMBS loan servicers.  

Oregon Hospitality Recovery & Grant Program
Launch a multi-faceted recovery initiative with expanded emergency grants to broaden access for time-sensitive grants originally made available through Oregon’s Rapid Response Team in the Office of Workforce Investments.
  • Expand access to grants for thousands of hospitality businesses across Oregon 
    • Utilize leadership and administration available through Business Oregon
    • Identify $50 million in additional grant funds beyond Rapid Response Team efforts to assist as many as 5,000 hospitality business locations at an average grant award of $10,000 per location.
  • Hold Oregon hospitality employers harmless for increases in Unemployment Insurance (UI) rates as a result of COVID-19.
    • Pursue employer UI rates comparable to rates assessed before COVID-19
    • Utilize federal CARES Act funding to cover increased increments associated with employer UI rate increases to stabilize system for operators and their employees.
  • Solve the problem with gaps in Business Interruption Insurance Coverage for COVID-19
    • The loss of business income due to COVID-19 and associated emergency declarations is not necessarily covered in ‘loss of business income’ insurance policies for many Oregon hospitality businesses.
    • Virus exclusions were added to policies as a result of the SARS coronavirus which was first identified by the World Health Organization in 2003.
    • Some policies provide coverage when civil emergency declarations are triggered but language relating to many policies references ‘direct physical loss of or damage to” within insured policies.
    • ORLA is working with Oregon Legislators, national partners, and colleagues in the insurance industry to determine what can be done to assist hospitality businesses in accessing ‘loss of business income’ COVID-19 insurance as part of a Phase 4 CARES Act package.
  • Implement a Work Share Recovery Plan
    • Currently, Work Share offers replacement of 20-40% of a worker’s pay.  Consider expanding that amount to a flat 50% where employers are covering half a worker’s pay and Work Share is covering the other half through the remainder of calendar year 2020 for qualifying applicants. 
    • Due to additional flexibility granted by the United States Department of Labor and new funds available through the federal CARES Act, Oregon can expand access and capacity to small businesses bringing employees back onto payrolls through additional resources available at the Oregon Employment Department.
  • One-time Startup Food Purchasing Grants in Conjunction with CARES Act Funds
    • As restaurants and lodging properties recover from the shutdown of their locations, they will need capital to purchase food from suppliers and vendors to restock their shelves and prepare for diners and visitors to return to their establishments.  
    • Providing grants for food purchases will ensure money is available for such purchases. Assisting the food supply chain with recovery will be critical in retaining jobs and hiring back Oregonians employed with major food suppliers and distributors in the Northwest.
  • Increase the United States General Services Administration (GSA) Per Diem Rates by 20 percent for Oregon public sector travel for four years ending June 30, 2024.
    • GSA’s lodging per diem rate methodology for FY 2020 was the same as previous years. The standard lodging rate for FY 2020 applies to approximately 2,600 counties and will increase from $94 to $96. The standard meal & incidental expenses (M&IE) rate remains $55.
    • Since Average Daily Rate (ADR) figures for 2020 will be skewed because of the COVID-19 crisis, the GSA Per Diem rate should be based on 2019 ADR in each location. Not knowing when this crisis will be over, estimates are it will take the lodging industry at least 18-24 months to recover once travel and lodging stays return to “normal”.  Increasing the GSA rate for four years will allow lodging properties to continue working through recovery plans while keeping Oregonians employed.

Corporate Activity Tax (CAT) Delay
Assist Oregon Hospitality businesses in avoiding tax payments which will directly impact available cash on hand for fixed costs and employee paychecks. 

The most immediate, pressing issue restaurants and lodging properties have today is cash flow. One of the most important actions the Legislature can take is to help businesses keep people employed by passing immediate relief from the new Corporate Activities Tax.

Requiring CAT tax payments in April will be the absolute worst timing possible for struggling businesses during this crisis. Companies will be forced to pay this tax instead of paying employees, meaning more layoffs for the hospitality industry.

We urge you to:
  1. Delay the implementation of the Corporate Activity Tax for the first two quarters of 2020. Allow time for your employers to rebound and rebuild.
    OR
  2. Continue partial assessment of the CAT that builds on the priorities of the tax, while acknowledging the unprecedented time we are in. Provide employers with a temporary option of filing under a reduced rate of .285% (half the current rate) for the first two quarters of 2020 or allow them to double their current deduction of 35% to 70% for the first two quarters of 2020.

Predictive Scheduling Relief
Provide immediate relief from penalties associated with Oregon’s statewide scheduling law. It is extremely difficult for businesses to predict workforce needs in this uncertain time. To effectively continue and rebuild operations, flexibility in scheduling employees will prove to be crucial.

Allow waiver of ORS 653.428 and ORS 653.450: 
  • Waive “Good faith estimates of work schedules” and “Right to Input to work schedule” during times of emergency related to COVID-19.
  • New 653.455(3): The requirements for additional compensation in this section do not apply when: 
    • (i) An employee is not able to report to a work shift or on-call shift due to the recommendation of a public official including a declaration of emergency by the Governor for public health purposes for the duration of the emergency
  • New 653.455(3)(j): 
    • (j) An employer requests that an employee work additional hours to address unanticipated customer needs due to a declaration of emergency by the Governor that impacts business operations during the duration of the emergency. 

SBA No Interest Loans through Business Oregon
No interest loans in addition to available grants will be key to assisting hospitality businesses on their path to recovery. Loans (even with no interest designations) will be difficult to manage for many small businesses. Deferring debt to a later date may help some if long term repayment plans can be established as a glide path to recovery.
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​Small Business Immediate Loans for Paid Family Medical Leave Act (PFML) and Emergency Paid Sick Leave (PSL)
  • Establish emergency funding made available to small businesses subject to the new PFML and PSL requirements (for-profit and non-profit) under 500 employees through no-interest loans with Business Oregon. Employers with under 500 employees will be required to front load new PFML and PSL effective April 2nd. 
  • Immediate cash is needed to allow employers to satisfy this requirement without wiping out cash reserves.
  • Loan repayment makes sense when federal tax credits/underpayment credits are disbursed to the employer. Structuring loan repayments on this timeline will assist employers in retaining employees and staying open during recovery.
The following companies have signed on to support the proposed relief efforts:
A1 Hospitality Group, Pendleton
Albany Visitors Association, Albany
ALKO Hotels, Eugene
Art de Cuisine Catering, Portland
ATAULA, Portland
Back Porch Bar & Grill, Jacksonville
Beachcomber Vacation Homes, Cannon Beach
BRB Inc, Albany
Brown's Towne Lounge, Salem
Bunk and Brew Partners, LLC, Bend
Buoy Beer Company, Astoria
Candy, Portland
Cannon Beach Bakery, Cannon Beach
Casa El Mirador, The Dalles
Cascara Vacation Rentals, Sunriver
Cedarwood Saloon, Grants Pass
Chris Jaworski, Portland
Clarion Inn and Suites Clackamas, Clackamas
Clockwork Rose Tea Emporium, Beaverton
Columbia Cliff Villas Hotel, Hood River
Columbia Gorge Hotel, Hood River
Comfort Suites Redmond Airport, Redmond
Concept Entertainment Four, Portland
CraftPDX, Portland
Crave Catering, Portland
Crumbl Cookies Progress Ridge, Beaverton
Curtis Restaurant Equipment, Springfield
Denny’s of Hermiston, Hermiston
Dixie Tavern, Portland
Dundee Bistro, Dundee
EBM Foods, Salem
Ecola Seafood, Inc, Cannon Beach
Edgewaters Restaurant, Bandon
El Charro Mexican Restaurant, Springfield
Escape Lodging Co, Cannon Beach
Firenza Pizza, Portland
Firenza Pizza, Tigard
Fultanos Pizza, Cannon Beach
Gamberettis, Albany
Gamberettis, Salem
Gaufre Gourmet, Inc., Portland
Genesis Astoria LLC, Astoria
Genesis Seaside LLC, Seaside
Golden Grill Concessions, Inc., Salem
Good Earth Foods LLC, Hood River
Hotel Prairie, Prairie City
Ixtapa Family Mexican Restaurant, Scappoose
Jackson’s Corner, Bend
KaitenPDX LLC, Hillsboro
La Perla Pizzeria, Eugene
Larry's Restaurant, Milwaukie
Le Puy A Wine Valley Inn, Newberg
Leisure Inn, Canyonville
Lemolo Lake KOA, Idleyld Park
Malone’s Ale House, Beaverton
Manzanita Clean, Manzanita
Markum Inn, Mt. Angel
McDonald Wholesale Co, Eugene
Miss Delta, Portland
Mt. Hood Meadows Ski Resort, Hood River
Nepo42, Portland
NorthWestraw LLC, Ashland
Oak Tree Northwest Bar & Grill, Ashland
Ocean Inn, Manzanita, Oregon
Old Parkdale Inn B&B, Parkdale
Oregon Destination Association, Bend
Oregon Shakespeare Festival, Ashland
Oregon Restaurant & Lodging Association, Wilsonville
OSF International Inc. - The Old Spaghetti Factory, Portland
Palms Motel, Portland
Park Lane Suites and Inn, Portland
Pelican Brewing , Pacific City
Pelican Brewing, Cannon Beach
Pelican Brewing, Tillamook
Pizza a'fetta, Cannon Beach
Pizza Schmizza, Beaverton
Portland International Guesthouse, Portland
QdobaOregon, Beaverton
QdobaOregon, Corvallis
QdobaOregon, Eugene
QdobaOregon, Hillsboro
QdobaOregon, Portland
QdobaOregon, Salem
QdobaOregon, Tigard
QdobaOregon, Wilsonville
Quick Stop Motel, Myrtle Creek
Rocking Frog Cafe, Portland
Sage LLC, Beaverton
Sailor Jack Inn, Lincoln City
Salmonberry Saloon, Wheeler
Sanctuary, Portland
Seal Rocks RV Cove, Seal Rock
Seaside Hotel Partners LLC, Seaside
Service Creek Outfitters Inc, Fossil
Sleepy Monk Coffee Roasters, Cannon Beach
Sol Station LLC, Portland
Someday, Portland
Sunset Vacation Rentals, Manzanita
Tastebud LLC, Portland
The Aerie at Eagle Landing, Happy Valley
The Brick House Inc., Springfield
The Hi-Lo Hotel, Portland
The Original Pancake House, Salem
The Spare Room, Portland
Three Creeks Brewing Co., Sisters
Tony’s on Lancaster, Salem
Tualatin Hotel Partners LLC, Tualatin
Valley Pub, Salem
Visit Corvallis, Corvallis
Visit Newberg, Newberg
Warren Country Inn, St. Helens
Washington Street Steakhouse, Dallas
Wildflower Baking, Portland
Willamette Valley Visitors Association, Salem
Wisecracks Cafe, Corvallis
Zoup!, Wilsonville
QUICK LINKS

- ORLA CEO Updates
- COVID-19 Resources & Information
- FAQs for the Hospitality Industry
- Relief Efforts for Employers/Employees
- ORLA Relief Efforts for Hospitality
​- Reducing Food Waste Resources

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BUSINESS IMPACT SURVEY
Business Oregon, Travel Oregon, and Small Business Development Centers have partnered in developing the State of Oregon Business Impact Survey to understand how COVID-19 is impacting businesses across the state.
ECONOMIC IMPACT SURVEY
​Worksystems is working with the State of Oregon on two National Emergency Grants focused on averting layoffs and helping those who have already lost their jobs. They are seeking input to help inform these grants and make sure they meet regional business and worker needs.