Congress unveiled a $900 billion plan that will significantly help restaurants of all types during this critical period.
The plan includes a second round of access to the Paycheck Protection Program (PPP), with unique provisions aimed to assist the restaurant industry.
From the beginning of the pandemic, the National Restaurant Association has partnered with organizations like the Illinois Hispanic Chamber of Commerce (IHCC) and hundreds of thousands of restaurant advocates to press Congress and the Federal Administration for both long-term and short-term economic support for the restaurant industry.
Key restaurant specific components of the plan:
- Enhanced PPP Loan Limits: The Paycheck Protection Program provides businesses with forgivable loans based on 2.5 times monthly payroll costs. Restaurants, however, would be allowed to seek forgivable loans based on 3.5 times monthly payroll costs.
- Enhanced Access to PPP Program: Companies that employ 300 or more employees at all locations are deemed ineligible for the Paycheck Protection Program. Given the fact that many mid-sized and larger restaurant groups are on the verge of bankruptcy, the bipartisan plan allows restaurant groups to qualify for PPP as long as they do not employ more than 300 employees per location.
- Restaurants will benefit from other provisions in the bill, including enhancement of the Employee Retention Tax Credit, extension of the Work Opportunity Tax Credit, and restoration of the tax deduction for business meals.