The Christmas Eve Compendium
An update on ongoing developments in pandemic relief and safety-first initiatives
Earlier this week, Congress agreed on a $900 billion pandemic relief bill—an eagerly anticipated stimulus, with no federal aid having materialised since Spring. Although it is not nearly as imperative and impactful as the RESTAURANTS Act that our industry has been rigorously campaigning for, it is nevertheless a step in the right direction.
The National Restaurant Association, in typically expeditious and diligent fashion, released a comprehensive fact sheet that details the manner in which the Covid-19 Relief Bill affects and benefits restaurants specifically, highlighting relief in the form of enhancements to the Paycheck Protection Program, Tax benefits, enhancements to other critical SBA lending programs, and lots more.
Paycheck Protection Program (PPP)
The bill allows restaurants to access a second draw from PPP at 3.5x monthly payroll (vs 2.5x for other sectors); it also enacts a per-location 300 employee cap vs. a 300 allocation cap for other industries.
Tax Deductibility
Businesses can deduct allowable business expenses paid with PPP loans, including payroll, rent, mortgage interest, utilities and other allowable expenses. This applies to either a first draw or a second draw PPP loan.
Employee Retention Tax Credits (ERTC)
ERTC will be available for the first two quarters of 2021 and will allow certain employers to take up to $7,000 per eligible employee retained during these two quarters. Employers who received a PPP loan may still qualify for ERTC on wages that are not paid for with forgiven PPP funds.
Work Opportunity Tax Credit (WOTC)
WOTC is extended by five years, granting support for restaurants that hire, train, and retain employees from target groups.
Expanded the Business Meal Deduction
Business meals are now 100% deductible for 2021 and 2022.
Temporary Enhancements to SBA (non-PPP) Lending Programs
- Increases 7(a) loan guarantee to 90% with no fees
- No fees for 504 loans
- Extends CARES Act principal and interest waiver for new and existing 7(a), 504, and micro-loans
- For loans taken prior to the CARES Act, allows three additional months of principal and interest paid by the government; restaurants authorised to take an additional five months beyond the three.
For the complete overview, click here.
In addition to pandemic relief, another perennial core focus of the Association (and the restaurant industry as a whole) has been the importance of diner safety, health initiatives and hygiene measures for the staff and establishment premises. In this regard, we have been fortunate to witness rapid innovation that facilitated the continuance of business operations in the best manner possible. Our repository of articles, such as Contextual Innovation: How restaurants have adapted to prioritise health, Pandemic Panacea, Icy Ideas: How restaurants can adapt for the winter, Cooper’s Hawk Winery & Restaurants: A case study on innovation during the pandemic and The Marketing Blueprint, among several others, are a testament to the same.
The Association’s brand new Diner Code of Conduct, created in collaboration with Resy, The James Beard Foundation and the Food and Society Program led by Corby Kummer, is an extensive document that addresses ‘Safety First’ in its entirety.
In moments of crisis, chefs and restaurant owners jump in feet first. They take action. They want to help — not just the food service industry but their communities. Soon after restaurants shut down, that was the defining characteristic in every chef and restaurant owner I talked to for an article in The Atlantic, where I’m a longtime senior editor.
—Corby Kummer
Meticulously developed with insights from restaurant executives, a number of individuals and organisations that have supported the industry through their various initiatives, experts from the Centers for Disease Control and other astute professionals, the chapters are available for download at the Aspen Institute website.
You’ll find here first a baker’s dozen of 13 commandments — basic operating rules any kitchen should follow — which serve as a kind of executive summary of everything that follows. The guide itself leads with an excellent, clear summary of how Covid-19 spreads, which will clear up many points of confusion for any curious person (like me) interested in sensible precautions, and then goes on to advise managers and all workers on how to organize workspaces and workflow. Dr. Dooley’s explanation of source control, which begins the “In the Workplace” section for all workers, explores how best to protect yourself and the people around you: first check your own health and that of your co-workers before you come in to work and again when you start and leave each shift; then rigorously clean the surfaces and areas you control — particularly, of course, your hands. You’ll find excellent hand-washing and sanitization instructions in the appendices. You’ll also find here World Central Kitchen’s delightful Masky posters, after the appendix section. By now it should be obvious: always wear a fabric face covering!
—Excerpt from Safety First: Serving Food and Protecting People During Covid-19
Please reach out to aman@dashin.in for any feedback or clarifications regarding the content of this article.
