Small Restaurants struggle While Chains Land PPP Loans
Many small brick-and-mortar restaurants are still waiting for cash from the Paycheck Protection Program while large restaurant chains are having a much easier time getting funds using the coronavirus stimulus act.
The publication Restaurant Business Online recently reported that while major companies, like the parent company Ruth’s Chris steakhouse, have received as much as $20 million in subsidies, small sushi house Kura Sushi received less than $6 million to keep staff on payroll.
Some smaller restaurants have objections about the loan forgiveness requirements, which require employers to rehire staff within eight weeks of receiving the loan. Currently, many restaurants are closed or offer just takeout and delivery with minimal staff. They say they could use the money for other expenses other than staff to stay in business.
The National Restaurant Association hopes the restaurant industry can be granted more leniency and could be provided 60 to 90 days to rehire.