IRA Webinar on PPP - Clarifications on Full Time Equivalent Employees and Current Operation Status

Thank you to everyone that joined the IRA webinar this morning to review common questions and issues restaurants are facing as they apply for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). We appreciate our friends at Hinshaw & Culbertson and the Illinois Bankers Association for offering their legal and banking insights.

Click here to download the presentation.

Two important points of clarification from today's webinar:

  • A restaurant that was in operation as of February 15, 2020 does not need to currently be in operation or open to apply for and receive PPP loans.
  • Loan forgiveness is based on the retention of full-time equivalent employees.

Click here for an overview of PPP loans.
Changes Needed to Paycheck Protection Program

The IRA is working alongside the National Restaurant Association and state restaurant association partners to lobby Congress on much-needed improvements to the Paycheck Protection Program (PPP). These changes include:

  • Revise loan restrictions to allow for a greater percentage to be used toward rent and mortgage obligations
  • The outside rehire date should be changed to at least 90 days from when restaurants are allowed to fully reopen, which would allow for a ramp-up period back to some kind of normal business cycle.
  • Extend the program length through December 2020
  • Ensure loan terms match Congressional intent to adjust PPP loans to ten year terms.

Today, Senator Van Hollen (D-MD) read from the Association’s latest advocacy letter on the Senate floor. The letter, sent to Congress early this morning, acknowledges that the PPP is an important first step for restaurants surviving this crisis, but outlines the need to address the limitations of the program and to recognize the unique and evolving challenges of the restaurant industry. Click here to watch.

Click here to read the letter sent today to Congressional leaders. Stay tuned for an action alert email campaign in the coming days on these issues.
Business Interruption Insurance - File Your Claims

The IRA strongly encourages all businesses that have been impacted by COVID-19 to file business interruption insurance claims, whether or not you believe your claim will be denied. We have been advised that having a claim on record is an important step.
Please  visit our website  for the latest coronavirus updates, in addition to the above resources and information for your business - updated as of 7:25 p.m. Thursday, April 9.