The National Restaurant Association has reviewed the Speaker Pelosi’s revised HEROES Plan and its impact on the restaurant industry. See the main points of the summary below:
Payroll Protection Program
- Creates a second round of PPP. Must demonstrate 25% gross receipts loss in 1Q, 2Q, or 3Q 2020 year-on-year. No operator can secure more than $10M in loans aggregated across all of their locations.
- The bill is silent on the restaurants/hotel exclusion that we secured when PPP was created the Senate GOP plan was as well - although SBA will continue to extend the exclusion if this passes
- Clarifies that qualifying business expenses paid with a PPP loan are deductible from federal taxes.
- Creates streamlined forgiveness process.
- Allows some non-profit organizations to apply
- Blumenauer RESTAURANTS Act: Creates new Treasury Department grant program ($120B), funding lost revenue between 2019 and 2020.
- Any restaurant operating in more than 20 locations (regardless of ownership) is ineligible
- Expanded eligibility
- Restores $600/week program through January 2021.
You may view National's Executive Summary of the act HERE, as well as the National Restaurant Association's press release on the plan.
CRA will continue to update as we track the development of this legislation.