Today, Congress unveiled a $900 billion relief bill to provide short-term economic relief to the country in the face of the coronavirus pandemic. The plan includes several items that will benefit restaurants, most importantly, a second round of access to the Paycheck Protection Program (PPP), with unique provisions aimed to assist the restaurant industry, which continues to endure unparalleled job and revenue losses.
“Since early March, when Louisiana restaurants were shut down by the pandemic, the Louisiana Restaurant Association partnered with the National Restaurant Association to press Congress and the Trump administration for both long-term and short-term economic support,” said Stan Harris, LRA President and CEO. “This bill will provide Louisiana restaurants with much needed capital, creating more time for us to work with Congress to develop additional programs to save our beloved community restaurants.”
The plan announced today targets restaurant relief with provisions including:
Other provisions in the bill that will benefit restaurants include the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals.
“The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months,” said Tom Bené, President and CEO of the National Restaurant Association. “A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today’s bipartisan agreement will give them the opportunity to do that through the holidays. However, the long-term economic challenges facing independent, franchise, and chain restaurants will not end with the new year, and we will continue to press federal and state leaders for the support that will put us on the road to recovery.”
Click here to read the provisions in the new bill. Find the full National Restaurant Association Blueprint for Restaurant Revival, which includes additional supports to put the restaurant industry on the road to recovery, here.