New PPP Loan Insurance Covers Food Service Establishments if the SBA Later Finds They Were Ineligible for the PPP Loan Program | Modern Restaurant Management | The Business of Eating & Restaurant Management News

Businesses that benefited from PPP loans were required to meet the “necessity certification” requirement and consider alternative sources of liquidity, while also taking into account “affiliated” businesses, prior to submitting a loan application. Consider PPP loan insurance to cover damages, legal fees and fines if the SBA determines that your business was ineligible for the loan.

As one of the industries most affected by the COVID-19 pandemic, food service establishments large and small have been looking for relief since March. Many of them received it in the form of PPP loans.

Restaurants and other hospitality businesses took in more than $42 billion in U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, accounting for as many as 8.07 percent of total distributed loans.

Although the program was originally intended to help businesses with fewer than 500 workers, large hospitality and restaurant chains like Shake Shack, Ruth’s Chris and…

Peter de Boisblanc

Peter de Boisblanc leads HUB International’s transactional risk practice in the United States, advising purchasers and sellers in M&A transactions (including private equity funds and strategic buyers) on risk allocation solutions, with a focus on brokering representations and warranties insurance (RWI) policies and related insurance products. As a broker, de Boisblanc draws on his extensive prior experience as an underwriter on AIG’s M&A insurance team, where he underwrote more than 150 RWI policies. Prior to joining AIG, he practiced law for 11 years, most recently at Ropes & Gray, LLP, where he advised private equity clients with respect to the placement and negotiation of RWI policies for both domestic and international transactions.

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Peter de Boisblanc