What Hospitality Companies and Restaurant Owners Need to Know about Round 2 of the PPP

Some good news for Restaurants and Hospitality

This new round of PPP will prevent public companies like Taco Bell from being eligible. The rules will direct funding toward smaller businesses whose revenues have taken serious hits during the pandemic. The bill also carves out about $90 billion for first-time loan recipients, smaller-scale borrowers, and community financial institutions that focus their lending to the BIPOC community and other underserved groups. Loans under $150,000 will have shortened forgiveness applications, in an effort to attract borrowers who can’t afford to employ professional accountants. Restaurants will also be able to use funds to pay vendors or to help erect outdoor dining setups.

What hospitality companies and restaurant owners need to know about round 2 of the PPP

  • The maximum number of employees for restaurants (NAICS 72) is capped at 300 employees per location.
  • For this second PPP draw, restaurant owners can apply for a loan of up 3.5 times their monthly payroll costs for a maximum of $2 million.
  • Up to 100 percent of the loan amount may qualify for loan forgiveness if the proceeds are used to cover approved expenses (including payroll costs and eligible nonpayroll costs). Funds must be utilized during the covered period no fewer than 8 weeks and a maximum of 24 weeks.
  • The new relief package expands on what qualifies as eligible non-payroll costs. It includes personal protective equipment (PPE), cleaning products, business software or cloud computing services, property damage that resulted from public disturbance not covered by insurance, professional cleaning services, supplier costs for perishable food items, and any expenses incurred in changing the restaurant to comply with social distancing guidelines.

How TimePayment streamlines your funding

110,000 restaurants have closed their doors since the onset of the COVID 19 pandemic. Get your PPP funding now, keep your staffers and diners. TimePayment eases the burden of the traditional SBA loan process by using Numerated’s technology to automate the PPP application processing. Unlike some banks that cherry-pick and move the larger loans to the front of the line, TimePayment uses the Numerated platform to processes loan applications on a first come first serve basis, so be sure to complete your application today.

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Paycheck Protection Program

Submit Your PPP Application

Applications for funding are being processed on a first come, first served basis so please complete your PPP application today.

The Paycheck Protection Program is back. PPP’s federally guaranteed loans are intended to keep America’s businesses going during the ongoing impact of COVID-19. The second round of PPP loans have new eligibility guidelines and many businesses and independent contractors may qualify, even if they received a PPP loan previously.

First-time borrowers in general, can have no more than 500 employees and their business must have been in operation as of February 15, 2020. The first loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $10 million loan maximum.

Second-time borrowers can apply for a second PPP loan if they’ve spent or expect to spend the full amount of their first PPP loan before they receive funding for the second loan. In general, second-time borrowers can have no more than 300 employees. The second loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum.

Restaurants and Hospitality companies with NAICS code 72 can borrow up to 3.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum.

These highlights will apply to many borrowers, but there are some exceptions. For full program details, visit SBA.gov and Treasury.gov.

Will you let us help you apply for a PPP loan?

What is the Paycheck Protection Program?

The Paycheck Protection Program is a specific type of federally guaranteed loan intended to keep America’s businesses going during the temporary turmoil of the global pandemic. The SBA will empower businesses to borrow money based on the average cost of their monthly payroll. The money can be used for payroll costs, employee benefits, insurance premiums, mortgage interest, rent, utilities and more.
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Paycheck Protection Program Highlights

The PPP can be 100% forgivable

Get 2.5x monthly payroll (10wks), up to $10MM

Use it for payroll & other bills like rent & utilities

Businesses of 500 or fewer staff are eligible

No personal guarantee or collateral needed

How Does the Paycheck Protection Program Work?

STEP 1

APPLY

STEP 2

REVIEW

  • Your application will be reviewed to determine the maximum amount you are eligible to receive

STEP 3

APPROVED

  • We will reach out to let you know what amount you have been approved for and next steps

Who is Eligible?

  • Business must have been in operation as of February 15th, 2020.
  • Businesses must have paid salaries and payroll taxes or paid independent contractors.
  • Sole-proprietors, independent contractors, and other self-employed individuals are eligible.
  • Businesses with no more than 500 employees.
  • 501(c)(3) nonprofit, a 501(c)(19) veteran’s organization, or Tribal business described in section 31(b)(2)(C) of the Small Business Act with 500 or fewer employees are also eligible.
  • The program waives affiliation rules for businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory, and small businesses that receive financing through Small Business Investment Company (SBIC).