Good news for restaurants, bars, and other small businesses: The U.S. government is now accepting applications for the Paycheck Protection Program (PPP), a vital lifeline for an industry that’s been devastated by the COVID-19 pandemic.
Amounting to $284 billion, the PPP loan program was recently revamped, adding new assistance that specifically targets the hospitality industry for extra help and sets aside aid for low-income communities and first-time borrowers who missed out on funding during the first round of loans last year.
Here’s the gist of it: Eligible restaurants and small businesses can access the $284 billion in new PPP loans, which can be fully forgiven if proceeds are used for allowable expenses during a selected 8-week or 24-week period that begins after the proceeds are received.
Don’t waste any time in applying for these benefits. The first round of $350 billion in benefits that the government released last April ran dry in under two weeks. And since less than 10 percent of those loans actually went to the food service and hotel industries, the smart money says that this year’s PPP loans will be gobbled up just as quickly.
A shred of good news for those seeking loans: The makeup of the new PPP loan program directs funding toward smaller businesses that have sustained catastrophic losses during the pandemic. The loan program also sets aside $90 billion for first-time recipients and other groups who got the short end of the stick last year.
We know it can be confusing and somewhat daunting, but there are resources available for restaurants to learn more and go into the loan program supplied with invaluable knowledge. For starters, the National Restaurant Association published a guide earlier this month that outlines the new rules. Also, check out this extensive article from Eater, who cuts through the fat and tells you everything you need to know.