{"id":3912,"date":"2021-01-20T11:46:30","date_gmt":"2021-01-20T15:46:30","guid":{"rendered":"https:\/\/lgcassocprod.wpengine.com\/?p=3912"},"modified":"2024-03-12T14:26:18","modified_gmt":"2024-03-12T18:26:18","slug":"round-2-of-ppp-loans","status":"publish","type":"post","link":"https:\/\/lgcassociates.com\/es\/round-2-of-ppp-loans\/","title":{"rendered":"Round 2 of PPP Loans\u00a0| Hospitality in the News"},"content":{"rendered":"

Every week we comb through the news to find employment trends affecting the hospitality\u00a0industry\u00a0<\/span>so you<\/span>\u00a0don\u2019t have to. This week\u2019s topic: what\u00a0<\/span>the second round of<\/span>\u00a0the<\/span> PPP loans mean for restaurants<\/a>. <\/span>\u00a0<\/span><\/p>\n

In March 2020<\/span>, the\u00a0<\/span>Paycheck Protection Program\u00a0<\/span>(PPP)\u00a0<\/span>was launched under the\u00a0<\/span>CARES<\/span><\/a>\u00a0Act<\/span>, whose purpose was to\u00a0<\/span>p<\/span>ut<\/span>\u00a0<\/span>money in the hands of businesses who were forced to shut down or limit operations due to the pandemic.\u00a0<\/span>This loan\u00a0<\/span>was\u00a0<\/span>intended to cover employee payroll to prevent mass layoffs, and could be\u00a0<\/span>fully\u00a0<\/span>forgiven\u00a0<\/span>if the business spent\u00a0at least 60% loan payment on payroll costs<\/span>.<\/span>\u00a0<\/span><\/p>\n

The initial\u00a0<\/span>run of the program was\u00a0<\/span>met with mixed feedback. On one hand, some businesses were able to secure a loan<\/span>\u00a0(with<\/span>\u00a0only<\/span>\u00a0<\/span>8%<\/span><\/a>\u00a0of those being\u00a0<\/span>in the hotel and foodservice industries)<\/span>; on the other hand,\u00a0<\/span>huge corporate brands like\u00a0<\/span>Taco Bell<\/span><\/a>\u00a0were\u00a0<\/span>eligible and able to cash in, causing concern over who the program was intended for.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Second Round of PPP Loans<\/strong><\/h5>\n

Fortunately,\u00a0<\/span>another PPP was passed by congress through the\u00a0Coronavirus Response and Relief Supplemental Appropriations Act<\/span>.\u00a0<\/span>There are several differences between\u00a0<\/span>the first and second programs<\/span>;\u00a0<\/span>where the first program\u2019s eligibility was\u00a0<\/span>more broad<\/span>, the second aims to\u00a0<\/span>target<\/span>\u00a0small businesses\u00a0<\/span>and hospitality venues\u00a0<\/span>\u2013 the industries that are suffering the most during the pandemic.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to Forbes and the U.S. Small Business Administration,\u00a0<\/span>the following are required in order to be eligible for the second round (referred to as \u201csecond draw\u201d) PPP loans: <\/span>\u00a0<\/span><\/p>\n