TDAs Eligible for PPPs

<p>Translation: Tourism Development Authorities Now Authorized to Borrow Money Through the Federal Paycheck Protection Program</p> <p>A Tourism Development Authority (TDA) is a local government entity that is typically created by a county or municipality to administer and expend local occupancy tax proceeds to promote tourism in the local government or region. There is no general law authority to create a TDA. Instead, that authority has been given to several counties and municipalities through local acts, almost always in conjunction with the authorization of a local occupancy tax. A TDA is a separate legal entity from the county or municipality that established it, although it may be reported as a component unit of the local government for financial reporting purposes. Although the general purpose of TDAs across the state is the same, the specific powers and authorities of individual TDAs vary and are prescribed by the respective local acts that authorize their creation.</p> <p>As discussed in a previous post, TDAs may not borrow money, because that authority may not be conferred by the General Assembly by local act. The NC Constitution requires the General Assembly to authorize a local government entity to borrow money only through a general law enactment. (A general law is defined in Sect. 3 of Art. XIV of the NC Constitution.) The lack of borrowing authority presented a difficulty for TDAs looking to take advantage of a COVID-19 related federal stimulus program, known popularly as the Paycheck Protection Program or PPP. The General Assembly recently enacted a general law granting TDAs borrowing authority for [...]</p>