President Donald Trump recently signed the CARES Act into law, making more than $2.2 trillion available to help American businesses, employees, and their families. Restaurant owners who have been impacted by COVID-19 now have several relief options available to them from the federal government. Owners and operators are also encouraged to explore other SBA lending options and programs on their website by clicking here.
A crucial piece of the CARES Act, and one that many restaurants can take advantage of, is the Paycheck Protection Program. Restaurants qualify for the Program if their location employs fewer than 500 workers. The good news is that even franchisees who operate restaurants associated with large-scale chains would qualify for assistance because the employee counts are only confined to single units, rather than across the entire concept.
Additionally, despite its title, the Paycheck Protection Program covers more than employee payroll. Money received can be used to pay rent, keep the lights on, and even help pay the interest on a mortgage.
The federal government has fully guaranteed Paycheck Protection Program loans through the end of 2020, but applications will only be accepted until June 30th.