Back in March, a call-to-action to assist the restaurant industry began. The Paycheck Protection Program (PPP) was rolled out under the CARES Act. Stress placed on restaurant owners to stay afloat amidst the pandemic grew. However, resilience stepped in by independently created groups like the Independent Restaurant Coalition (IRC). The IRC asked for change. Here’s how the PPP has helped restaurants around the U.S.
With the dedication from the IRC and so many other passionate restaurateurs, help prevailed. The restaurant industry got a significant amount of money allocated to keep their services going in their communities. How much? A whopping $42 billion dollars was dispersed to the restaurant and hospitality industry. 8% of those funds are being used by the restaurant industry and that number continues to grow.
A Bridge for The Restaurant Industry
When COVID-19 hit, unemployment rates sky-rocketed. A majority of those unemployed were in the restaurant and hospitality industry. Ultimately, this led many restaurant owners to fear seeing their dreams die. Finding restaurant employees in-of-itself is difficult. Ironic. Fliptable is here to help when you’re ready. The pandemic made the employment issue apparent when many fled the industry, afraid of the possible health consequences. Others fled the industry for financial reasons. For health and financial reasons, the industry was on the brink of extinction. That is, until the CARES Act and the PPP passed.
Restaurant Hiring and Operations
The PPP helped to pay and hire employees. An act to keep and get help back in the game. Course, there were stipulations for loan acceptance. The loan specified areas the aid needed to go to such as operations and payroll. No problem. As restaurants all around the world began to take advantage of the PPP, the economy began to reopen at a limited capacity. Great news that business owners and many communities needed to know and see. Humans are social creatures. Restaurants are hubs that provide food and the ability to socialize outside of homes.
Large Chain and Independent Restaurants
Restaurant owners are excited to operate and pay their hard-working employees. Thanks to the PPP, many restaurant dreams are still alive. Below is a list of current chains whose operations continue with help from the PPP:
- 99 Restaurants Holdings LLC
- Bertuccis Restaurants LLC
- Legal Seafoods LLC
- TGI Fridays Inc.
- Bojangles Restaurant Inc.
The above is a list of large chains. Likewise, smaller restaurants also received funding. Over 100,000 restaurants have been approved for the PPP. The majority of the funds thus far have gone to the Golden State of California, having received 33.4 billion dollars across the state. Now, the loan amount varies depending on many different factors, so if you notice an imbalance, this isn’t meant to turn political. Here’s a list of states who’ve applied and received funding:
- New York
PPP Funds Are Still Available
Fear reaped havoc. Early on, funds quickly ran dry. More money, however, is still available for restaurants who have not made that initial leap, specifically small businesses. The deadline to apply if you are a small business is August 8. So, if you haven’t applied. Go for it. The PPP has helped restaurants all around the U.S. A well-needed life-line for so many. The government is “making it rain” on business’s.
PSA: Be sure to advise in the appropriate constituent before accepting monies. Where there’s a will, there’s a way. However, where there’s money, there’s almost always fine print. Read it.
Today’s data shows that small businesses of all types and across all industries benefited from this unprecedented program. – SBA Administrator Jovita Carranza
If you like numbers and data. Look no further than the full PPP report through June 2020. This is a great report to review if you are wanting to know just how the PPP has helped restaurants around the U.S.
Take this time to realize that there’s light at the end of the tunnel. That’s an amazing thing. There’s hope. With hard work and a mixture of hope and dedication, the show will go on.