What’s Next with Paycheck Protection Program (PPP) for Restaurants? | Modern Restaurant Management | The Business of Eating & Restaurant Management News

The Small Business Administration (SBA) and US Treasury department’s PPP loan forgiveness application was released on May 15, 2020 (Forgiveness Application). The much-awaited guidance does little to address the unique challenges afflicting the restaurant industry. Under the current guidelines, restaurants may find it impossible to take advantage of one of the cornerstones of the PPP program: loan forgiveness.

The restaurant industry has been hit particularly hard by COVID-19. Some staggering statistics on the restaurant industry during this pandemic include:

Restaurants, on average, laid off 91 percent of their hourly workforce and 70 percent of salaried employees due to COVID-19 related closures (James Beard Foundation)

The biggest challenges restaurant owners believe they are facing in reopening are: Slow return of customers (41 percent), Cash to pay vendors (35 percent), Rehiring staff (16 percent), Retraining staff (three percent), and Health Inspections…

Sonia Desai

Sonia Desai, CPA, ABV, ASA, is a Director in the Forensic & Litigation Services practice and leads the Valuation Services practice in Weaver’s Austin office. She has over 15 years of experience in valuation, litigation, investigations and audit, including serving as an expert witness and advising clients on the value of assets and business interests in commercial disputes, mergers and acquisitions and financial reporting. Desai is a Certified Public Accountant (CPA) licensed in Illinois, an Accredited Senior Appraiser (ASA) and Accredited in Business Valuation (ABV) by the AICPA.

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Sonia Desai