The COVID-19 pandemic has been unprecedented across the entire foodservice industry. For service companies, management and technicians have been greatly impacted, causing some businesses to change their operations and reduce staff. Within the last month, new programs and resources have been created to help during these unprecedented times. Below is a quick list of COVID-19 financial assistance for foodservice companies and technicians.
U.S. Chamber of Commerce – CARES Act Guide
Parsing through the entire CARES Act can be challenging for businesses and independent contractors. The U.S. Chamber of Commerce set up the Independent Contractor’s Guide to the CARES Act Relief. The guide walks you through eligibility, what lenders look for, how much you can borrow, potential loan forgiveness and more.
U.S. Chamber of Commerce – State Programs
The U.S. Chamber of Commerce also set up a guide with different state assistance programs. Below are some notable examples:
- California – The state has different loans, grants and donation throughout multiple cities, including a microloan program in Los Angeles as well as economic-relief plan in Sacramento, San Diego and San Francisco.
- New York – New York City’s Small Business Continuity Loan Fund offers zero-interest loans of up to $75,000 for small businesses with fewer than 100 employees, who have seen a 25% or more decrease in sales.
- Washington – Seattle set up the Small Business Stabilization Fund, offering grants up to $10,000 for low- and medium-income business owners. Also, Amazon established the Neighborhood Small Business Relief Fund to assist businesses with fewer than 50 employees or less than $7 million in annual revenue.
View the entire guide here.
Small Business Administration Loans
The Small Business Administration (SBA) developed loans that could help service companies during this pandemic.
- *Paycheck Protection Program – The program forgives loans if the money received covers necessary expenses, such as payroll, mortgage interest, rent or utilities. The biggest caveat is that your employees must remain on the payroll for eight weeks.
- Express Bridge Loan Pilot Program – A small service company can be granted a $25,000 loan if it has a relationship with an SBA Express Lender. The loan can be used to recover any lost revenue and grants monetary help when applying for other potential loans programs.
- SBA Debt Relief Program – The debt relief program grants reprieves impacted businesses by automatically paying the principal, interest and fees of current 7(a), 504 and microloans for six months or new 7(a), 504 and microloans issued before September 27th, 2020.
- *Economic Injury Disaster Loan Emergency Advance – The program offers up to $10,000 of economic relief to businesses currently experiencing temporary difficulties and loss of revenue. The loan doesn’t have to be repaid.
*UPDATE: The SBA temporarily stopped accepting applications for the Paycheck Protection Program and Economic Injury Disaster Loan Emergency Advance. More funding was approved April 23, meaning the SBA will be accepting new applications soon.
IRS Tax Credits
Aside from extending the filing date from April 15 to July 15, the IRS also has implemented two new employer tax credits:
- Credit for Sick and Family Leave – This is for employees who have coronavirus, are caring for someone with coronavirus or are caring for children who attend school or daycare facilities currently closed due to coronavirus.
- Employee Retention Credit – This allows employers to a refundable tax credit equal to 50% of up to $10,000 in qualified wages, including health plan expenses (between March 12, 2020 and January 1, 2021). Eligible businesses must have operations that are partially or fully suspended due to governmental orders due to COVID-19, or they must have a significant decline in gross receipts compared to 2019.
View full tax credit information here.