The National Restaurant Association has taken an “all of the above” approach to federal recovery efforts. From the Paycheck Protection Program, the Employee Retention Tax Credit, to the Restaurant Revitalization Fund – they are focused on providing relief through every possible measure.
The National Restaurant Association has been actively engaged with the Small Business Administration (SBA) to improve the COVID Emergency Injury Disaster Loan (EIDL) program to make it more usable for restaurants. Last week, the SBA unveiled a new expansion of the program – increasing the loan limit and improving the range of uses, all while retaining the same very low federal interest rate.
Specifically, the new COVID EIDL program includes:
- An increase in the loan cap amount to $2 million from a current cap of $500,000. Eligible businesses that have already received a COVID EIDL loan for a smaller amount can apply to increase their loan.
- Requirements for businesses that are affiliated will now mirror the Restaurant Revitalization Fund (RRF).
- COVID EIDL funds can be used to pre-pay business debt, allowing restaurants that are carrying higher-interest commercial debt or even credit card debt (acquired over the last year) to use COVID EIDL funds to pay outstanding debt balances in one lump sum.
But we urge you to consider the COVID EIDL program to improve the strength of your business.
The National Restaurant Association is hosting a free webinar on Wednesday on the COVID EIDL program, with a top SBA official to walk us through the substance and take your questions. Click here for additional details and to register.
They have also prepared a new fact sheet on the COVID EIDL program that can be found here.