America Needs a Real Small Business Survival Plan
The PPP isn’t it. Sharks swimming with minnows. That, in a nutshell, is just one problem with the Paycheck Protection Program, the ‘forgivable loan’ program designed to help rescue small businesses. But it’s not the only problem. America needs a small business survival program, not just a paycheck protection plan. In a new stimulus bill, Congress just approved an additional $322 billion in PPP funds, less than a month after the CARES Act allocated $349 billion for small businesses to help them continue to pay their employees during the coronavirus pandemic. As with the first round, these new funds will run out quickly.
Restaurants Upset
After missing out on fixes sought in new coronavirus relief package. Independently owned restaurants are blasting the passage of a bipartisan bill that would replenish funds to a program designed to keep small businesses from shuttering amid the nation’s coronavirus pandemic, arguing it does not make the “fixes” their industry desperately needs. But the Independent Restaurant Coalition – which represents chefs and owners of small, non-chain restaurants – has lobbied for policy changes to restrictions around how the loans are used and the timeline in which the money must be spent. They say the rules don’t work for businesses that still aren’t sure when customers will return.
Restaurants Won’t Be Ready
To open with rest of the country. As governments start planning ways to re-open the COVID-19-stricken economy, in some cases as soon as next week, several surveys show that independent restaurants probably won’t be ready to open with the rest of the country — at least not without a profound increase in aid and more realistic goals. Despite a $2 trillion-plus federal stimulus program, known as the Paycheck Protection Program (PPP), nationwide fundraising efforts, and an additional injection of capital for small-business loans, an increasing number of restaurant owners say that even in two months they won’t have the staff, customers, or finances needed to stay open long term.
Did You Know?
How to help senior citizens cope with the coronavirus pandemic. The coronavirus can be lethal to anyone who catches it, but seniors are especially at risk if infected. “Eight out of 10 deaths from COVID-19 have been from those age 65 or older,” says Dr. Natasha Bhuyan, a family physician in Phoenix, Arizona. “The reason why is because our immune system is less effective at fighting infections as we get older. Also, having multiple other chronic diseases can complicate this virus.” Fortunately, there are steps that younger people can take to help seniors cope right now.
Employee Tip
How are unemployment benefits taxed? More than 22 million Americans have filed for unemployment benefits in the past four weeks. They may be eager to get the money, but they may not be thinking about how the benefits are taxed. The federal government taxes unemployment benefits as ordinary income (like wages), but you don’t have to pay Social Security and Medicare taxes on this income, says Oscar Vives Ortiz, a certified public accountant and member of the American Institute of CPAs Personal Financial Specialist Committee.
Restaurant Industry Daily Alerts
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Thank you and remember all of the “Restaurant Industry Alerts” and “Thursday Restaurant Rap” interviews can be found at www.123bsc.com/news/. We intend to continue to keep you informed as we all look for an end to this crisis.
