Last Updated 4/9/2020
The CARES Act can help your restaurant better survive the current pandemic shutdown in two important ways: 1) it can give your business the funds it needs to continue to operate, and 2) it can ensure your employees receive the financial help they need during this time of economic uncertainty. Restaurant owners feel responsible for both their business and their employees’ wellbeing, but understanding what resources are available to them is challenging. The government is still clarifying many of the finer details of the CARES Act so things may still change in the coming days and seeks. To help you, we’ve compiled a great list of resources to help you navigate this situation.
Disclaimer: We are not financing experts, but we work with hundreds of restaurants and small business owners all over the country. These resources are a collection of the best things we’ve come across that are worth sharing.
For Your Business:
As of April 3rd, 2020, businesses can apply to get access to the SBA Paycheck Protection Plan (PPP) emergency funds that were part of the CARES act signed by the President on March 27, 2020. We encourage you to apply for this program as soon as you can so you can get access to the funds your businesses can use to offset a large chunk of your payroll expenses. You have until June 30, 2020, so apply as soon as you can.
Here’s what you need to know:
- Overview: PPP Loan Overview from the SBA
- How to apply: Businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Ask your bank!
- Prepare ahead. Download and fill out the Paycheck Protection Program Borrower Application Form.
NOTE: Even large banks are slow to make applying online available so keep checking. Check to see if your bank is accepting online PPP loan applications.
If you prefer to apply for the SBA’s Economic Injury Disaster Loan (EIDL) you can start by applying for the EIDL Loan Advance. This gets you up to $10,000 quickly as an advance. If you’ve already applied for and received the EIDL advance, you can still apply for the PPP Loan and roll the advance into your PPP loan so that it’s forgivable.
There are other funding options available through the SBA. We encourage you to apply for as many as you can.
Other funding ideas:
- Start a GoFundMe Campaign. You can receive up to $500 in matched donations.
- Facebook Small Business Program. Check to see if your business is in a location where Facebook operates.
More very helpful resources:
- A very informative video talking about PPP loans and FMLA Sick Leave (3/30/2020)
- A helpful explanation of what you’ll need to prepare for your PPP application (4/3/2020)
- Very easy to read chart regarding the difference between an SBA Disaster Relief Loan (EIDL) and the new PPP loan?
- PPP Loan Checklist and Guide
For Your Employees:
We know you want to support your own employees as much as possible right now. You’ve likely had to lay off or dramatically reduce the hours of your employees, so here are a few resources you can share with them to make sure they get the financial help they need until you can hire them back again.
- Send this to your employees: COVID-19 Scenarios & Benefits Available
- As much as you can, help guide your employees through the process of applying for Sick Leave, Family Leave, or Unemployment. They really need and deserve your support.
Please feel free to contact us and we’ll help as much as we can.
Other COVID-19 Resources:
Did you know?
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