Newbury Daylilies

Main Menu

  • Home
  • Newbury
  • Slough
  • Wokingham
  • Maidenhead
  • Banking

Newbury Daylilies

Header Banner

Newbury Daylilies

  • Home
  • Newbury
  • Slough
  • Wokingham
  • Maidenhead
  • Banking
Banking
Home›Banking›Hospitality industry secures $ 18 billion in latest round of PPP loans

Hospitality industry secures $ 18 billion in latest round of PPP loans

By Lisa Scuderi
March 9, 2021
0
0

Dive brief:

  • The hospitality industry, which includes restaurants, has received more than $ 18 billion in loans under the latest round of the paycheck protection program that began in January, according to U.S. Small Business Administration data as of February 7. This equates to about 18% of the program’s nearly 101 billion loans, the most received by any industry, so far in 2021.
  • SBA data shows that about 70% of loans are for less than $ 50,000. Restaurant activity reports that small businesses that borrowed money in the first round now withdraw three times that amount in the second round.
  • The distribution of these loans comes as Congress debates a $ 1.9 trillion budget resolution motion including $ 25 billion specifically dedicated to restaurant subsidies, and $ 7.25 billion more for the PPP.

Dive overview:

The second round of PPP loans appears to be much more favorable to the hospitality industry. During the first round of the program, which ran from April to August, only 8% of the sector have received loans, according to August data from the SBA.

But the National Restaurant Association and the Independent Restaurant Coalition still argue that this program is not enough to help the battered restaurant industry recover.

“The paycheck protection program adopted last year provided about $ 34 billion in support for the restaurant industry, but the pandemic has cost U.S. restaurants and bars more than $ 240 billion in sales since. March, “the associations said in a joint letter to Congress on February 24. ten.

The associations urged Congress to adopt the $ 25 billion restaurant subsidy program this is part of the budget reconciliation, which could distribute grants of up to $ 10 million per restaurant (or $ 5 million per physical location) and allocate $ 5 billion in grants to restaurants that generated less than $ 500,000 in revenue. in 2019. The NRA and IRC said the proposed program is “a good first step” in helping restaurants maintain payrolls and repay debts – the latter not as viable with a PPP loan because the program requires the bulk of the loan to go to workers’ wages.

If the much larger portion of the PPP loans received by the hospitality industry this time around are tied to the Maison’s restaurant grant fund, it could be an adrenaline rush for the struggling segment. That said, the $ 25 billion package is still in the works and could very well change before it reaches the Senate. Notably, however, President Biden has has repeatedly indicated that he supports the grants specifically for the restaurant industry.

Related posts:

  1. Budget 2021: Why we need to look at tuition loans
  2. Opendoor Announces Fourth Quarter and Full Year 2020
  3. Sleeping estate in Westchester County, NY could play a leading role in Trump tax cases
  4. Finance: Return of the Refi: CLO Rate Adjustment Transactions After COVID-19 | Alston & Bird

Recent Posts

  • How did Berkshire MPs vote in the recent Brexit bill?
  • How the Thames seduced the smart set of the 20th century
  • Walter E. Arties, founder of Breath of Life, dies at 80
  • Alexander Devine Children’s Hospice: Teen Movie Virtual Tour
  • What is the dress code for Henley Regatta and where can you park?

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021

Categories

  • Banking
  • Maidenhead
  • Newbury
  • Slough
  • Wokingham
  • Terms and Conditions
  • Privacy Policy