As you are well aware, 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 – we are focused on providing relief through every possible measure.
We have told you about our ongoing work with the Small Business Administration (SBA) to improve the COVID Emergency Injury Disaster Loan (EIDL) program to make it more usable for restaurants. The SBA listened and yesterday 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 to 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.
Obviously, expansion of the RRF remains a priority and you’ll hear more from us on that front next week. But we urge you to consider the COVID EIDL program to improve the strength of your business.
Next week, we will offer a free webinar on the COVID EIDL program, with a top SBA official to walk us through the substance and take your questions.
We have also prepared a new fact sheet on the COVID EIDL program that can be found here.
We look forward to seeing you next week. Thank you for your continued support.
Executive Vice President of Public Affairs
National Restaurant Association