US Congress extends PPP
- extends the PPP application deadline (currently March 31, 2021) two months, to May 31, 2021; and
- provides an additional 30 days, after May 31st, for the Small Business Administration (SBA) to process pending applications.
This is a positive development for the many of our members who have been seeking the extension. This will ensure that restaurants have ample time to apply for the program and that SBA processing delays don’t negatively impact applicants.
As a reminder, for restaurants to qualify they must:
- employ 300 or fewer persons per location; and
- have experienced a 25% or greater gross revenue loss between comparable periods in 2019 and 2020, as a result of COVID-19.
Restaurant Recovery Fund:
In a U.S. Senate Small Business Committee hearing, the SBA said it expects a “phased launch” of the $28.6 billion Restaurant Revitalization Grant program to begin in April, over the next 30 to 45 days. This is the first timeline provided by the SBA, which expects to receive “hundreds of thousands of grants,” as quoted in the attached article. The Association continues to work closely with SBA staff on implementation of this program.
The SBA is increasing the maximum eligible amounts for Economic Injury Disaster Loans (EIDLs). Beginning April 6, recipients – including those who previously received an EIDL – can access up to $500,000. The previous limit was $150,000.
Businesses that previously received an EIDL are not required to submit a request for an increase, as the SBA is expected to “reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date.”