Denver-based Red Lion Hotels Corporation received a $4.2 million loan from the federal relief pot for small businesses.
The publicly-traded RLH was one of many large corporations to receive loans from the Paycheck Protection Program, which was passed by the CARES Act, in order to provide relief for small businesses decimated by the coronavirus pandemic.
The program, administered through the Small Business Administration, provided $349 billion in forgivable loans to businesses with fewer than 500 employees to cover operational costs in the short-term. The program quickly ran out of funds, and congress passed a bill adding an additional $310 billion, which is awaiting President Trump’s signature.
RLH, which owns a variety of budget hotel brands throughout the United States and Canada, has laid off 40 percent of its corporate workforce, part of a broader restructuring that began prior to the coronavirus pandemic and cut the base salary of its executive staff by 20 percent. Many of its hotels, which are independently owned, have been temporarily closed.
RLH has a market capitalization of $38 million, and its stock was trading at $1.51, as of Friday, April 25.