So, it’s no secret that the coronavirus has heavily impacted the restaurant industry. Therefore, restaurants and bars were ordered to close their doors and offer take-out only. That means a serious decline in revenue. Take-out orders rarely compare to eat-in and can be as little as a quarter or less of the typical revenue. Coronavirus relief funds are now in full swing.
Restaurants are facing extreme financial difficulties during the pandemic. Smaller restaurants are feeling immense pressure. Rent payments are due. Consequently, tax payments are due and perishable items are being thrown away.
There is some relief for restaurants during the coronavirus crisis, however. For that reason, relief programs for restaurants impacted by coronavirus are being set up.
These funds and programs offer additional assistance for restaurants during coronavirus, from financial aid to tax relief and deferments to more advanced relief in the historic legislation for coronavirus relief passed on March 25th.
Due to pandemic, these are among the most prevalent relief funds for restaurants facing coronavirus hardships:
Coronavirus Aid, Relief, and Economic Security (C.A.R.E.S.) Act – Coronavirus Relief Bill (United States Government)
Here’s how it works: Restaurants with multiple locations but fewer than 500 employees may take out a loan for 2.5 times monthly payroll. Based on 2018 figures up to a total of $10 million. The criteria that stand is that your business must have been in operation on February 15th.
Social security taxes will be deferred. Half will be due at the end of the year and the other half due one full year later.
Payroll taxes will be refunded—restaurants paying employees during the coronavirus crisis at 50% of the total wages. Again, there are stipulations. The stipulation is that your restaurant must have been closed or experienced at least a 50% drop in revenues. A YoY (Year-over-year) is an effective way to evaluate financial performance. Restaurants that have 100 or more employees will get a refund on wages paid while closed. Smaller establishments get credit on all wages.
Tax Extension for California Restaurants:
There will be a tax extension and deferments for restaurants in California. Governor Newsom issued an order. The order will allow the California Department of Tax and Fee Administration (CDTFA) to give a 90-day extension. The extension is for tax returns and tax payments for all businesses with less than $1 million in taxes due.
Read more here
Restaurant Relief America from the NRAEF & Guy Fieri
This is the National Restaurant Association’s Educational Foundation (NRAEF) Relief Fund launched by the NRAEF and Guy Fieri.
The NRAEF Restaurant Employee Relief Fund offers a one-time $500 payment for restaurant employees that lost their jobs due to the coronavirus crisis. The “Diners, Drive-ins and Dives” host, Guy Fieri, and The NRAEF teamed up to offer up to $100 million in relief funds for restaurants impacted by the coronavirus. You can donate here.
https://rerf.us/make-a-donation/
The James Beard Foundation Food and Beverage Industry Relief Fund
The James Beard Foundation is raising money to provide financial assistance and cash to small independent restaurants struggling during the COVID-19 (coronavirus) crisis. They will give money to restaurants in immediate need of funds to remain open and pay expenses. You can donate on their website.
#LiftYourSpirits
The #liftYourSpirits campaign collects donations to provide relief for bartenders and other restaurant employees affected by a COVID-19. All proceeds are going to the above-mentioned National Restaurant Association’s Educational Foundation (NRAEF).
Yelp’s COVID-19 Response and Support Effort
Yelp, the online platform that advertises restaurants, bars, cafes, and diners, has announced $25 million in relief for restaurants during COVID-19. The focus is on independent restaurants and bars. A business that remains open will receive free access to upgrades in their profile and the Connect feature. See the press release for more information.
Rally for Restaurants
Rally for Restaurants is also assisting. A grassroots donation drive set up by Toast allows people to purchase gift cards for restaurants to use at a later date. You can search for and buy a restaurant gift card on their website. This helps restaurants earn money during the coronavirus pandemic.
See more resources for Restaurants and Bars for coronavirus relief fund information and issues state by state:
