Feb 11 Food Service Industry Gets Extra Funding Under Second Draw of Paycheck Protection Program
Due to legislation passed in late December 2020, the Food Service industry can now obtain a loan under the Paycheck Protection Program (PPP) up until March 31, 2021. The maximum loan amount is 3.5x the average monthly 2019 or 2020 payroll costs up to $2 million while other industries are limited to 2.5x.
Eligible restaurants and small businesses can access $284.5 billion in new PPP loans, which can be fully forgiven if proceeds are used for allowable expenses during a selected 8-week or 24-week period that begins after the proceeds are received.
Applicable borrowers include:
- Food service organizations including restaurants and drinking places
- Food contractors
- Caterers
- Hotels
- RV Parks and Camps
- Rooming or Boarding Houses
Don’t leave money on the table, especially during these difficult times. For any questions relating to the second draw of the PPP or how these loans can be leveraged by your company, feel free to reach out to a Sax advisor for guidance.
Sax will continue to update you as further details are made available. Reach out to your Sax advisor or email [email protected] with questions. For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.
About the Author
Kathleen Alexander, CPA, MST, CFE is a Partner at Sax and Head of the firm’s Food and Beverage niche. She focuses on establishing good tax strategies to minimize business and personal taxes to provide increased cash flow. She can be reached at [email protected].
