Now that the $1.9 Trillion COVID relief bill has been signed into law by President Biden, let's examen how this legislation will impact the restaurant industry.
Of the $1.9 Trillion in the bill, $28.6 Billion has been set aside for restaurant aid. Differing from the PPP loans from last year, the money set aside in this bill is a grant rather than a conditional loan, giving restaurants more flexibility as to how to use the money. Other utilization details about the grants are as follows:
$5 Billion of the $28.6 Billion has been set aside for smaller restaurants with annual gross receipts of $500,000 or less.
Publicly traded restaurants / restaurant groups with over 20 locations are ineligible for the grant.
Restaurants owned by women, veterans, or economically / socially disadvantaged minorities will receive priority for the first 21 days.
The grants are capped at $10 million for restaurant groups and $5 million for individual restaurants.
If your restaurant received a PPP loan after 12/27/20, that loan amount will be deducted from your grant allowance.
All of the funds given out must be used by the end of the year.