House Approves Bill That Gives Small Businesses More Time to Use PPP Loans
And lets them spend less on payroll. The Democratic-run House on Thursday voted overwhelmingly in favor of a bipartisan bill that would give small businesses more time to use emergency loans and let borrowers spend less of their loan proceeds on payroll. The action comes as Senate Republicans and the Trump administration also have backed extending the deadline for spending Paycheck Protection Program money beyond the current eight weeks, though they haven’t sounded supportive of relaxing a PPP rule that requires that 75% of loan proceeds go toward payroll expenses.
Why the Small Business Rescue Program
Has slowed way down. Data from the Census Bureau show that PPP funding is finally catching up to demand. The bureau’s Small Business Pulse survey has three weeks of data, starting on April 26 — the week the second round of PPP money opened. Over all three weeks, demand for PPP money didn’t rise. Each week, around 75% of businesses said they had requested PPP money since the program opened. But the share of businesses who had received the money rose steadily, from 38% in the first week to nearly 67% in the third week. So, while there are still some businesses waiting on funds, it appears that the overwhelming majority that wanted PPP money have gotten it. Beyond that, demand does not appear to be growing.
Rebuilding America
How businesses will reopen after coronavirus and navigate a new reality. New Jersey is about to experience the most comprehensive economic awakening since World War II. After months of economic lockdown, we are on the verge of “reopening” our economy. NorthJersey.com is in an ideal position to tell the story of how America’s economy will be rebuilt — a process that begins on Main Streets in New Jersey. Since the pandemic hit, businesses have had to finds ways to keep their operations from going under. Those changes, experts and business owners say, are likely to carry on well after the pandemic subsides. That’s because with changing consumer habits, a summer of social distancing, and high-profile bankruptcies, the New Jersey retail world will look far different when stores reopen.
Ruby Tuesday Has Quietly Closed 147 Restaurants
Here’s the full list. “Yesterday don’t matter if it’s gone,” go the lyrics to the Rolling Stones song “Ruby Tuesday,” the namesake of the casual dining restaurant chain. Ruby Tuesday’s leadership may have taken those words to heart. Since late January, the brand has been quietly shutting down restaurants and scrubbing them from its website without so much as a peep. Ruby Tuesday was already rapidly shedding locations in the last few years, but the pandemic has meant even greater losses for the brand. Ruby Tuesday’s brand has been in dire need of reinvention for a long time. Even before the pandemic, the chain was struggling to retain existing customers and attract a new generation of younger customers.
Burger Saloon in Woodland Eases into Reopening
This is a new war. James Lombardi, co-owner of Woodland’s Burger Saloon, used these words to describe the battle he and other business owners have been fighting since the coronavirus pandemic began. “It is not often your whole industry gets leveled,” Lombardi said while seated in the empty dining room of the downtown business. The Burger Saloon — located at 601 Main St. — has been a Woodland staple for eight years. On Friday nights the eatery was often packed, passers-by could see the crowded tables through its large windows. Now, like many restaurants, Lombardi and his team have had to adjust to changing health mandates handed down by state and local government. This involved closing their doors when the county’s shelter in place order restricted dining. This action spurred the layoffs of all but three people who stayed on to plan next steps.
Food Trucks May Be the Perfect Solution
To feed customers. Coronavirus is changing everything, including how we eat, and the impact on the food industry can’t be overstated. During the first 22 days of March alone, the restaurant industry saw a $25 billion loss in revenue. Despite all the doom and gloom, however, we’ve seen something remarkable: examples of food entrepreneurs actually growing their businesses. There are two things these businesses are doing right now that I believe hold the keys to success in the post-COVID-19 restaurant industry. First, they’re going mobile to go where the customers are. And second, they’re creatively incorporating order ahead (not just delivery).
Did You Know?
“Restaurant Rap” continues with exclusive restaurant industry interviews. Today’s “Restaurant Rap” features an interview with musician, marathoner, restaurateur, owner and operator of twelve McLoone’s Restaurants in New Jersey; Tim McLoone. Schooled at Harvard and accomplished in music, athletics, and business, Tim McLoone opened his first restaurant in October of 1987. Tune in as he describes the challenges he has faced during the pandemic and the changes he foresees for the industry going forward. This series appears each Thursday within the company’s Restaurant Industry Alert daily bulletins. It presents recorded virtual video interviews with local restaurateurs and other industry professionals, many of whom are the firm’s clients, customers, and associates.
Click here to watch the interview
All previously recorded interviews can also be found at our website www.123bsc.com/news/ and on at https://vimeo.com/bielatsantore.
Employee Tip
Life-changing event’ of COVID-19 could alter how we work, spend and retire. Wynne Beckmann has worked in retail for 13 years, through the upheaval of the Great Recession a decade ago. But getting furloughed from her job at a Westchester, New York, mall in March felt different. “This is an eye-opener. I don’t know how much longer I can do retail,” says Beckmann, a 32-year-old assistant manager at LOFT, a women’s clothing store. “If things don’t change, I’ll have to take my marketing degree somewhere else. Maybe Amazon or Glossier, somewhere that puts e-commerce first.” Many like Beckmann are grappling with a future that may mean fewer jobs at stores and restaurants and more technology positions. It’s a future in which a generation of shaken young Americans may pull back on spending and older workers may put off retirement to replenish depleted nest eggs. And it’s a world in which an entire industry, business travel, could shrivel.
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.
