Economic Injury Disaster Loans: Another Option on the Financial Relief Menu
There are a variety of relief programs available for restaurants that have suffered during the COVID-19 pandemic, including grants from the Restaurant Revitalization Fund and forgivable Paycheck Protection Program (PPP) loans. Related Read: Paycheck Protection Program Gets a Refresh If your restaurant business was unable to obtain this relief — or if your funding has […]
Is Your Restaurant Eligible for Employee Retention Credits?
The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage employers to keep employees on the payroll despite the COVID-19 pandemic’s impact on their businesses. The ERC was originally established by the CARES Act, which was enacted in March 2020. A refundable payroll credit, the ERC provides eligible employers with a tax […]
$28.6 Billion Federal Restaurant Relief
The American Rescue Plan Act (ARPA) was signed into law on March 11. It delivers direct relief to restaurants through a $28.6 billion Restaurant Revitalization Fund (RRF). The RRF provides tax-free grants via the Small Business Administration (SBA). Related Read: The American Rescue Plan Act Has Passed: What Is in It for You? Who may apply? […]
Stimulus Legislation Offers Relief for the Restaurant Industry
On December 27, 2020, the Consolidated Appropriations Act (the Relief Act) was signed into law, authorizing additional stimulus payments to individuals, extending enhanced unemployment relief and providing a variety of benefits for struggling businesses. The following is a brief overview of the provisions most relevant to restaurants. Deductibility of Expenses Paid with PPP Loans Last […]
Final Meal and Entertainment Regulations — A Much-Needed Win for the Restaurant Industry
As the restaurant industry continues to struggle amid the COVID-19 pandemic, any relief that can help restaurants boost their cash flow is welcome. Recently, the IRS issued final regulations regarding limits on the deductibility of meal and entertainment expenses. The regulations confirm that most entertainment expenses are nondeductible, but they clarify that some meal expenses […]
The RESTAURANTS Act: Will Congress Deliver Additional Financial Relief?
As the COVID-19 pandemic continues to take a toll on the U.S. economy, restaurants and bars remain among the hardest-hit businesses. A bill pending in Congress, if enacted, would provide the industry with much-needed financial relief. The tortuously named Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive (RESTAURANTS) Act of 2020 would […]
PPP Application Deadline Extended — $129 Billion Available
Frank L. Washelesky
In June, the Paycheck Protection Program (PPP) Flexibility Act was signed into law, making it easier for many businesses to benefit from forgivable PPP loans. This was good news for restaurants, many of which had declined to apply for loans because of the Program’s strict requirements regarding rehiring of staff, use of the funds and […]
Paycheck Protection Program Gets a Refresh
Frank L. Washelesky
The Paycheck Protection Program (PPP) has received a partial makeover. The PPP Flexibility Act (“Flexibility Act”), signed into law on June 5 together with new Small Business Administration (SBA) guidance, eases some of the restrictions that made it difficult for many businesses — restaurants in particular — to take full advantage of the program. Among […]
CARES Act Creates Tax Refund Opportunity for Many Restaurants
Brian R. Israel
The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Paycheck Protection Program, authorized stimulus checks for many Americans, and provided other economic relief for individuals and businesses. One provision that should not be overlooked corrects a technical glitch that has deprived many restaurants and other businesses of accelerated depreciation deductions for certain building […]
Playing Your Cards Right: Can You Defer Taxes on Gift Card Sales?
Many restaurants sell gift cards that can be redeemed for meals or for merchandise. For tax purposes, these sales are considered “advance payments,” which generally are included in taxable income when they are received. But there may be an opportunity to defer some or all of this income into the following tax year. Are you […]