Financial Assistance Resources for Restaurants & Foodservice Companies

/ Foodservice Tips, Restaurant Tips, Techs & Service Companies / April 16

Financial Assistance Resources for Restaurants and Foodservice Companies

During these unprecedented times, it can be overwhelming trying to figure out what financial aid you qualify for to assist your restaurant or food service business. Fortunately, though, there is a bevvy of financial assistance programs available to your small business. If you’ve been impacted by the COVID-19 pandemic and are trying to navigate financial aid and resources available to your restaurant or foodservice company, take a look at the specific programs available online.

Small Business Administration Financial Aid Programs

The Small Business Administration (SBA) offers several key financial assistance programs you can apply for to provide support for your restaurant or food service. Below are funding programs you can apply for right now:

Paycheck Protection Program Loan

As part of the CARES Act, the Paycheck Protection Program is a loan specifically created to help small businesses stay employed with a stable payroll as a direct incentive. One of the major benefits of the Paycheck Protection Program is that the SBA will forgive the loans if the money granted is used for necessary expenses like payroll, mortgage interest, rent or utilities, and—most importantly—all of your employees remain on the payroll for eight weeks. Loan payments will be deferred for six months once granted, with a maturity of two years and 1% interest rate.

Please Note: As of April 16th, 2020, the SBA has officially announced that it is unable to accept new applications of the Paycheck Protection Program, along with the Economic Injury Disaster Loan Emergency Advance Program. However, there are other financial programs and loans readily available to your business.

Express Bridge Loans

As the name suggests, the Express Bridge Loan Pilot Program lets small businesses like restaurants or food service companies quickly access a $25,000 loan, so long as the business has a relationship with an SBA Express Lender. This loan is meant to recuperate any lost revenue, and provide monetary support while applying for additional loan programs. This loan must be paid in full or in part by proceeds from the Economic Injury Disaster Loan if granted to the applicant.

SBA Debt Relief

The SBA’s Debt Relief program is a financial reprieve for restaurants and food service companies during the pandemic. As part of this program, the SBA will:

  • Automatically pay the principal, interest and fees of current 7(a), 504 and microloans for six months.

  • Automatically pay the principal, interest and fees of new 7(a), 504 and microloans issued before September 27th, 2020.

IRS Financial Relief for Restaurants & Food Service Companies

In addition to the tax filing extension granted by the IRS, there are additional tax relief programs and exemptions that are available for your business.

Employee Retention Credit

The Employee Retention Credit, according to the IRS website, is “a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12th, 2020, and before January 1, 2021.” This is a readily available credit to access as long as you meet certain requirements detailed on the IRS site.

Families First Coronavirus Response Act

Enacted by the IRS, the U.S. Department of Treasury and the U.S. Department of Labor, the Families First Coronavirus Response Act provides paid sick leave to your employees and tax credits for your business if you have less than 500 employees.

National Restaurant Association Employee Relief Fund

Created by the National Restaurant Association Educational Foundation (NRAEF), the Restaurant Employee Relief Fund is designed to assist restaurant industry employees who are being negatively impacted by the repercussions of the pandemic. This Fund supplies grants to employees in an effort to offset lost wages or loss of employment. After applying and being approved, the recipient will receive the grant as soon as possible.

For more resources and information available to you and your foodservice-related business, check out our COVID-19 resources guide.

Comments are closed.