Governor John Carney of Delaware announced the Hospitality Emergency Loan Program (HELP) earlier this year to provide financial relief for restaurants, bars and other hospitality industry businesses that employ thousands of Delawareans.

The Hospitality Emergency Loan Program (HELP) to provide funds to some of the most significantly impacted by COVID19 virus mitigation measures.   The program offers no-interest loans of up to $10,000 per business per month and is available to eligible businesses in the hospitality industry.  The Division of Small Business will administer the program using existing state funds.

For businesses under NAICS code 7225, the revenue cap is $15 million.  If a qualifying business’ total mortgage or lease payments in a month (across a single location or multiple) exceed $10,000, it is eligible to apply for a loan of up to $50,000 per month to cover those two expenses.

Eligibility

  • Delaware based business in a qualifying industry 
  • Must have been open at least one year
  •  Cannot have more than $2.5 million in annual revenue** (if a group with multiple l ocations, this is based on all combined)
  •  On bills for which business seeks reimbursement
    •  Must be current for at least 80 percent of payments over past 12 months
    •  Not past due on most current bill
  •  Must operate in one of the following four-digit NAICS code industries (more information on
    NAICS codes):

    •  7225 Restaurants and Other Eating Places
    •  7224 Drinking Places (Alcoholic Beverages)
    •  7223 Special Food Services
    •  7211 Traveler Accommodations
    •  7139 Other Amusement and Recreation
    •  7131 Amusement Parks & Arcades
    •  7121 Museums and Historical Sites
    •  7113 Promoters of Performing Arts
    •  7112 Spectator Sports
    •  7111 Performing Arts Companies
    •  4855 Charter Bus Industry
    •  4879 Scenic and Sightseeing Transportation, Other
    •  4872 Scenic and Sightseeing Transportation, Water
    •  4871 Scenic and Sightseeing Transportation, Land
    •  3121 Beverage Manufacturing
    •  3118 Bakeries and Tortilla Manufacturing
    •  8121 Personal Care

The $10,000 can cover rent, utilities and other unavoidable bills but cannot be used for personnel cost

The loans have a 10-year term with payments deferred for nine months.

The application and additional information (including the FAQ) can be found HERE.

We are in this together,

Brinker Simpson & Company, LLC

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).