Included in the $900 billion pandemic relief bill are provisions to assist the struggling restaurant industry. Louisiana Restaurant Association President Stan Harris said the bill gives a second round the Paycheck Protection Program for restaurants that includes loan forgiveness and 24-weeks to spend the capital.
“And we were able to get a carveout for the restaurant industry in this, that instead of 2.5 times average payroll, 3.5 times their average payroll, would be the maximum that they are able to borrow,” said Harris.
Harris said the pandemic has been devastating to the restaurant industry in Louisiana forcing one in six eateries to close their doors and he fears that the number is growing. Harris said while they appreciate Congresses’ latest round of relief for many restaurants it is too late.
“Well, you gave us eight weeks of money for what’s turned out to be a nine-month plus crisis, and that’s just not enough liquidity,” said Harris.
Harris said this bill offers enhanced access to PPP for companies with less than 300 employees, focusing relief on smaller eating establishments on the verge of bankruptcy.
“Any of those forgiveness loans will be not subject to any tax effect, so getting the full deductibility of all that was really important,” said Harris.
Almost 90-percent of restaurants report a decline in sales this year with revenue down 36-percent on average.
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