Stimulus 101: Paycheck Protection Program

What Does This Mean For You?

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.

Click here to complete your PPP form in 10 minutes.

What You Need To Know

Happy restaurant employee serving food

Congress has appropriated up to $349 billion in forgivable loans to certain small businesses under the Small Business Administration (SBA)’s Paycheck Protection Program.

Under the Program, you may be eligible for up to $10 million to pay your employees. The loan is set by a formula, your average monthly payroll prior to COVID-19 times 2.5, plus the amount of any other debt approved for refinancing, including any debt incurred as a result of COVID-19 under the Economic Injury Disaster Loan Program, or EIDL).

Qualified small businesses can begin applying April 3, 2020. We urge you to apply as quickly as you can because there is a funding cap and your lender will need time to process your loan.

You can apply through any SBA lender. Go to for a list of SBA lenders. The application is attached.