New COVID Recovery Tools for Hospitality

People eating outside at a restaurant

Congress unveiled its $900 billion bill for short-term economic relief for businesses affected by COVID-19. Several items will benefit restaurants and lodging establishments.

The federal plan announced today targets restaurant relief with provisions including:

  • Enhanced PPP Loan Size: The PPP provides a business with a forgivable loan based on 2.5 times its monthly payroll costs. Restaurants and hotels, however, can seek forgivable loans based on 3.5 times monthly payroll costs.
  • Enhanced Access to PPP: Companies that employ a total of 300 or more employees at all locations (combined) are deemed ineligible for the PPP. Today’s bipartisan plan reflects the reality that many mid-sized and larger restaurant groups are on the verge of bankruptcy and allows restaurants to qualify for PPP as long as they do not employ more than 300 employees at each physical location.
  • Extending CARES Act banking relief through the end of 2021, which will enable hoteliers to seek additional forbearance from their banks on conventional loans

The Oregon State Legislature is also holding a special session, which may include passing t0-go cocktail legislation.

“Hospitality operators in Oregon have been pleading for both long-term and short-term economic support,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “Today’s developments will assist restaurant and lodging establishments with their quest to survive. However, it does not change the unsustainable trajectory facing thousands of Oregon small businesses who have ongoing bills for their dining rooms with little to no revenue to cover those expenses.”

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