Much-needed financial relief is on the way. Here’s what the new bill means for restaurants.
It’s been a challenging financial period since the initial wave of stimulus money became available back in the spring, but the latest bill has now arrived and includes vital new funds allocated for PPP. Whether this is the first or second time you are applying for these loans, this critical information provides what you need to know about the new round of money and why you should apply immediately to support your business.
The bill provides $284 billion in new funds allocated for PPP.
Qualifying Criteria:
- Under 300 employees
- Must show at least a 25% decline in revenue for at least one quarter of 2020 over the same quarter of 2019.
- $2,000,000 loan limit
- The qualifying computation will be 2.5x 2019 monthly avg. payroll (similar to the 1st round). That multiplier is increased to 3.5x for restaurants.
- Proceeds can be used over 24 weeks.
- Non-profits, 501c, 501c 6 and news outlets are all included this time
- For those applying for a second round, it will be referred to as the second draw.
Forgiveness Eligibility:
- Proceeds can be used for: payroll, rent, mortgage, utilities and operating expenses, protection for employees against COVID-19, property damage from riots unreimbursed by insurance.
- 60% must be used on payroll to qualify for forgiveness
- The same form that was revised for self-certifying less than $50,000 for forgiveness will be used for $150,000 and under. Congress mandated it must be one page.
Other Features of the Bill:
- Business meals will be tax deductible for the next 2 years.
- The tax issue regarding expenses against PPP funds has been adjusted — they are now tax deductible.
- $15 billion has been set aside specifically for live venues, independent theaters, and cultural institutions (museums).
- $20 billion has been set aside for EIDL (Economic Injury Disaster Loan).
Additional Resources:
Click Here to Register for Your PPP Loan — Prime Commercial Lending, ACAP, and The Loan Source manage $4 billion in PPP loans, helping to service small business owners. For more information on registering with The Loan Source, click here.
PPP information provided by Park Cedar Commercial Lending, which specializes in providing commercial financing for businesses of all types and sizes.
Disclaimer: This information is subject to forthcoming SBA regulations. We continue to monitor those developments and will update this information as additional guidance becomes available. The SBA and the Treasury have continued to post guidance and regulations.
