Funding for Restaurants
🕐 5 Minute Read
The recent, devastating outbreak of coronavirus is an unprecedented crisis that has wreaked havoc on the entire world. Small businesses and restaurants are no exception, and in a time when nearly all non-essential businesses have been ordered to close, many have been disproportionately affected. Luckily, the crisis has led to an uptick in the availability of resources that can help owners keep their businesses afloat. Take a look at some of the most useful resources available for employers during COVID-19:
(Congress Currently Seeking More Funding)
The CARES Act is the largest economic relief package in US history, and it contains several options that can help small business owners. The package includes $350 billion dollars in small business loans, which also include loan forgiveness provisions. For employers, taking care of their employees is a major concern. The act created the Paycheck Protection Program which ensures that eligible businesses (those with less than 500 employees) can apply for forgivable loans that can help take care of up to eight weeks of payroll expenses. The act also provides relief to many employees as the package includes provisions for stimulus checks for individuals as well as extended unemployment benefits.
SBA’s Low Interest Loans
The SBA (Small Business Administration) is providing low-interest federal disaster loans of up to $2 million dollars for small businesses who are reeling from the loss of revenue caused by the COVID-19 crisis. The loans aim to provide an affordable option with 30 year repayment plans and a 3.75% interest rate for small businesses without other credit options.
EIDL Loan Advance
The EIDL (The Economic Injury Disaster Loan) is another program offered by the SBA that offers small businesses a $10,000 advance loan. The funds do not have to be repaid and are available to small businesses that are experiencing a loss of revenue due to the COVID-19 crisis. These funds can be accessed quickly to help minimize economic damage to businesses.
Many restaurant owners are already familiar with this online review platform, and Yelp is stepping in to provide relief to independent restaurants as well as franchises with fewer than five locations. Yelp has created a 25 million dollar fund which will go towards providing advertisement, waived fees, and free services to help provide businesses with the tools they need.
James Beard Foundation Relief Fund
The James Beard Foundation is legendary in the world of food and beverage, and the JBF Relief Fund is an effort directed at providing financial assistance to independently owned restaurants in order to keep them in business. The foundation is providing micro-loans to independent food and beverage businesses to provide them with fast financial support by gathering aid from a variety of donors.
There are many other resources available for both employers and employees, and many states and cities have also set up a variety of location-specific programs. Though coronavirus has shaken the industry to its core, with the right tools businesses can survive and continue to serve their communities, customers, and employees.