2021 applications for the Small Business Administration’s Paycheck Protection Program opened on January 11. First-time borrowers who meet SBA requirements can apply for up to two-and-a half times their average monthly salary expenditures. Applications for second-time borrowers will open on Wednesday, January 13.
The $284 billion federal program is expected to provide a critical lifeline for the hospitality and food service industries. Congress revamped eligibility requirements last year after criticism that the initial round of funding, which was tapped in less than two weeks, provided millions of dollars in relief funding to large corporations with deep wells of reserve funds at the expense of small businesses that have struggled to survive the pandeminc.
Second-time borrowers in the hospitality industry who are trying to compensate for reduced patronage due to indoor and/or outdoor dining bans in New York, San Francisco, Los Angeles and other major cities will be eligible to increase their loan applications by 40 percent.
In addition, businesses that abide by the loan regulations – most of the money has to be spent on employee salaries – can expect to have the loan eventually turn into a grant. Businesses that do not follow SBA rules will be required to repay their loans with interest.
The loans are certain to be a lifeline for many New York restaurant owners, but it is important to note that while the coronavirus pandemic has certainly hit the industry hard, the city continues to be a mecca for foodies. Eater.com, an online food journal published by Vox Media, has published a list of the city’s best options for eating out, listed by borough and including options for inside- and outside dining.