Times Square Billboards to Go Dark
In support of struggling businesses. The iconic billboards in Times Square will go dark for a minute Wednesday night to shine a light on struggling restaurants, hospitality businesses and nonprofits amid the coronavirus pandemic, according to the Times Square Alliance. More than 100 million pixels will be darkened at 9 p.m. at 46th Street and Broadway and the corner of 47th Street and Seventh Avenue to send a message that more federal support is needed, the group said. The blackout will be followed by a video that will urge the insurance industry to honor business interruption claims and back legislation.
Lawmaker Details Federal Reinsurance
For pandemic business interruption, event losses. New York Congresswoman Carolyn Maloney has introduced the Pandemic Risk Insurance Act of 2020, a federal backstop for pandemic-related business interruption insurance modeled after the Terrorism Risk Insurance Act. In short, the bill, H.R. 7011, creates a program in which insurer participation is voluntary. Insurers that do participate would offer pandemic-related business interruption and event cancellation coverage, and they would be reimbursed by a federal backstop for some of their losses.
Covid-19 Business Losses Covered By Insurance
Lawyers and CPAs advise you to file claim now. Contrary to what you may think, your company’s insurance policy may cover pandemic-related losses. Most commercial property insurance policies include what’s broadly referred to as “business interruption coverage.” Right now every business wants to evaluate its coverage to decide whether to file a claim related to losses arising from Covid-19, as developments and the law are quickly evolving. The controversies, complexities, and media coverage of the Paycheck Protection Program are a sideshow compared with the amounts of money involved in pandemic-related business insurance claims, and the significance of how insurance-coverage lawsuits and legislative efforts in Congress and states play out.
House and Senate Close
On PPP Loan extension. House Majority Leader Steny Hoyer said the House and Senate should be able to quickly agree on changes to the Small Business Administration’s popular Paycheck Protection Program to give loan recipients more flexibility in using funds. The House is poised to pass a bill on Thursday that would extend the current eight-week period during which businesses must use funds to have loans forgiven to 24 weeks or Dec. 31, whichever comes sooner. It would let businesses repay loans over five years instead of two and scrap a rule that no more than 25% of proceeds can be spent on expenses. The House also plans to take up a bill to increase transparency in the program. A similar measure with bipartisan support in the Senate would extend the deadline to apply for a loan to the end of the year from June 30 and double the current eight-week period during which businesses must use funds to have loans forgiven.
SBA Issues Promised Guidance on PPP Loan Forgiveness
And on SBA’s Loan Review Procedures. On May 15, 2020, the Small Business Administration (SBA) and Department of Treasury released the long-awaited application pertaining to the Paycheck Protection Program’s (PPP) loan forgiveness. In a May 18, 2020 alert, we identified several key takeaways and noted the SBA’s intent to issue further guidance to assist borrowers as they complete the application. As promised, the SBA issued two interim final rules on May 22, 2020 providing additional guidance on both the application and the process to obtain forgiveness.
Did You Know?
The Flamingo and Caesars Palace confirm reopening their casinos, restaurants on June 4. Caesars Palace and the Flamingo confirm they will reopen everything from restaurants and their hotels to the gaming floor table games and slot machines on Thursday, June 4. Caesars Entertainment also expects several retail and dining outlets along the Linq Promenade, as well as the High Roller Observation Wheel, will reopen. Parent company Caesars Entertainment also plans to reopen Harrah’s Las Vegas and the gaming floor at The Linq next when customer demand increases. Previously, the resorts revealed a health and safety plan to comply with recommended policies and procedures from the Nevada Gaming Control Board to help prevent the spread of COVID-19.
6 smart moves if you get laid off before you were planning to retire. he coronavirus pandemic has thrown many older workers’ plans into disarray, as they lose their jobs before they’d planned to retire. April saw the highest monthly job loss on record: 20.5 million jobs. Overall unemployment jumped to 14.7%, the highest since the Great Depression. For people age 55 and older, unemployment surged from 3.3% in March to 13.6% in April, according to the AARP Public Policy Institute. “The pandemic is a shocking blow to virtually all workers,” says Susan Weinstock, vice president, financial resilience at AARP. “But a third of the workforce is over age 50, and unemployment has hit them especially hard.” If you’re in that boat, you’ve got a lot of company. Here are steps you can take to help your finances stay on an even keel.
Bielat Santore & Company – 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.
How to market your restaurant for sale during the coronavirus pandemic. Of course, it will be challenging to market and sell businesses that have temporarily been shuttered during the pandemic, because valuations are based on historical financial data. However, whether you choose to reopen your business or not, owners can still position them for sale. So, what should you do if you want to sell in the next 6 – 12 months? Contact a good business broker that specializes in the sale of hospitality real estate and businesses. Bielat Santore & Company, Allenhurst, NJ has been brokering such sales for over 40 years and will be able to help you come up with flexible deal structures and capital sources to make a sale possible; call for a free consultation – 732.531.4200.