The CARE Act Payroll Protection Program (PPP) looks great on the surface, but what does it mean for restaurants who have laid off workers and are struggling to survive? Although the NRA is lobbying to make much needed amendments to the program, here is what you need to know now.

Do I Qualify? YES!
Even if you have more than 500 employees between multiple restaurant locations you qualify because restaurants and franchises fall under NAIC Sector 72: Accommodation and Food Services and are exempt from the employee count cutoff. YES! Even if you have laid everyone off, you still qualify for PPP for all of those employees. Note: Independent Contractors (1099) do not count as employees and will not be covered under PPP.

Important Items to Note:
You must use funds within 8 weeks from the date when the loan is distributed to qualify for loan forgiveness. Payroll and benefits (must equal 75% of  loan expenditures)

Any money used for unqualified things will not be forgiven.

Example: a restaurant only uses  60% on payroll, they will be responsible for the remaining 15% since they did not meet the 75% requirement.