FEDERAL UPDATE: CARES Act Provisions - What's in it for restaurants?
The $2 trillion coronavirus relief bill passed in the Senate on Wednesday and just passed the House. This bill contains a number of provisions specific to restaurants, foodservice establishments, and our employees.
Please click here to view a full summary of the bill. Some of the key provisions include:
The measure creates a $349 billion program for the SBA to offer unique loans to small businesses (500 or fewer employees). The loan amount is based on 250% of the borrower’s average monthly payroll cost for the preceding year (provisions for seasonal employers are included), up to $10 million. Collateral requirements are waived, and the "credit elsewhere" requirements (which have slowed down the process) have been waived as well. The loan is forgiven if used for payroll costs, mortgage interest, or rent/utilities.
An exception was made to the small business requirement for restaurants and hotels. The 500-employee number is based on the number of employees at each physical location. So a restaurant with 600 employees over five restaurant properties would qualify for these loans. This ensures that a number of larger independent restaurants and franchise owners can participate.
The agreement offers restaurant owners relief in the form of Net Operating Loss (NOL) carrybacks, delay of payment of employer payroll taxes, and an Employee Retention Tax Credit.
Qualified Improvement Property
Restaurants can now immediately write off costs associated with improving facilities. The QIP fix is complete.
WEBINAR TODAY: CARES Act Explained
On Friday, March 27, at 3:00pm ET, the National Restaurant Association Public Affairs Team will host a webinar, " Coronavirus Resources: An Overview of the CARES Act" focused on the contents of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Please join to learn what the legislation means for you and your employees and get a rough timeline of when these aid tools will be available.
Each covered employer must post a notice of the Families First Coronavirus Response Act (FFCRA) requirements in a conspicuous place on its premises. An employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information internal or external website.
SERVSAFE: FREE Products to Train on Takeout and Delivery Because of the challenges presented by COVID-19, ServSafe has developed free resources aimed at keeping our workers and the dining public safe. You and your employees can take these courses now. ServSafe Takeout and Delivery: COVID-19 Precautions and ServSafe Handler.
RESTAURANT OWNER & OPERATOR SURVEY
If you have not done so already, please complete the CRA Restaurant Owner and Operator Survey! Your voice is critical in letting both State AND National know how you are doing and what changes need to happen! .
RESTAURANT RELIEF ACTION ALERT: Contact the Governor and State Legislature Today
The Connecticut Restaurant Association needs your help. A letter has been sent to Governor Ned Lamont asking for relief for our industry. Now he and our state legislature need to hear from you.