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.