Author: Jason J. Redd

Restaurants Receive Additional Support Under the American Rescue Plan of 2021

President Biden recently signed the $1.9 trillion American Rescue Plan Act of 2021, H.R. 1319 (the “Act”) into law on March 11, 2021. The Act will send aid to millions of Americans still recovering from the global COVID-19 pandemic. Of particular interest to the restaurant industry, the Act provides the industry with additional assistance through the $28.6 billion Restaurant Revitalization Fund (the “Fund”). Section 5003 (Support for Restaurants), Title IV (Committee on Small Business and Entrepreneurship) provides support to restaurants as follows: Fund: A total of $28.6 billion is appropriated for a new program at the Small Business Administration (SBA) offering assistance to restaurants and other food and drink establishments. Of this amount, $5 billion is set aside for businesses with less than $500,000 in 2019 annual revenue. Restaurant Revitalization Grants: Grants are available for up to $10 million per entity (and affiliates), with a limitation of $5 million per physical location up to 20 locations. Revitalization grants are calculated by subtracting 2020 revenue from 2019 revenue. During the first 21 days post enactment of the Act, priority will be given to applications from restaurants owned and operated by women, veterans, or socially and economically disadvantaged individuals. Revitalization grants may be used for a wide variety of expenses, including payroll, mortgage, rent, utilities, supplies, food...

Third Phase of Federal Relief for Coronavirus: What Details We Know Right Now About the Legislation

While some companies have already begun to apply for relief from the Small Business Administration (SBA) and other government entities, others are waiting to see what additional programs may be on the horizon. While we do not know all the details of Phase III legislation in Congress, we do know it will include: Support for Businesses $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs $17 billion for SBA to cover six months of payments for small businesses with existing SBA loans A retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis SBA loan forgiveness eligibility for rent, mortgage, and utility costs Support for State and Local Government $150 billion for a state, tribal, and local Coronavirus Relief Fund $30 billion for the Disaster Relief Fund to provide financial assistance to state, local, tribal, and territorial governments, as well as private nonprofits providing critical and essential services $10 billion for the Indian Health Services and other tribal programs Support for Industries $150 billion increase in the Marshall Plan for our healthcare system $30 billion in emergency education funding $25 billion in emergency transit funding Support for Workers Increase in the maximum unemployment benefit by $600 per week Four...

Financial Disaster Relief for Start-Ups – Yes, It Is Possible!

The specific challenge we are addressing here is for start-ups and other early-stage businesses. Gibbons attorneys are heavily involved in advising businesses in all industries and of all sizes on the full range of state and federal coronavirus disaster relief programs available to them. Start-ups and other early-stage companies face particular challenges in obtaining governmental relief. Gibbons understands this and is here to help. With our strong commitment to start-ups and other early-stage businesses, we recognize your dire need for funds for survival, as well as growth, at this critical period. We also recognize that the federal and state application requirements seem staggering. Founding teams are confronted with overwhelming requests for tax returns, current financial statements, monthly sales figures, and similar requirements. Which aid program(s) should you pursue? How do you decide? How does a pre-revenue or newly launched start-up demonstrate to federal and state agencies substantial economic injury? How do you determine the best route for disaster assistance with the highest chance of short-term success and without being overwhelmed by red tape? What is its most recent pre-coronavirus valuation, and how was it justified – for example, thought independent third party investments or a verified order pipeline? How much economic loss has now occurred due to the crisis? How do you complete the forms...