Secure COVID-19 Stimulus Relief for California Restaurants and Workers
This morning, the Small Business Administration announced that $ 2.7 billion in grant assistance funds have been distributed to 21,000 restaurants nationwide since the Restaurant Revitalization Fund began accepting applications on May 3. specific groups including restaurants, bars, pop-ups, street vendors, wineries, distilleries and other food hospitality businesses to help offset losses suffered during the coronavirus pandemic. It’s certainly not a small sum – but wait, there is more.
To name a few: There is a new tax cut for restaurants and catering businesses, a stimulus check for state residents, and a city proposal for direct aid to residents. street vendors in restaurants, while minimizing costs and red tape. Here’s what you need to know about Southern California‘s small food business assistance programs, right now.
Before going into these state and local details, it is important to note an approaching deadline for the Restaurant Revitalization Fund subsidies. Federal officials will only continue to review and prioritize companies in certain specific food categories until May 26, in less than two weeks. So, if a restaurant’s ownership is 50% or more in the following groups, the SBA will continue to prioritize these applications for the time being:
- Latin Americans
- Native Americans
- Alaska Natives
- Asian Americans and Pacific Islander Americans
- African American
- Economically or socially disadvantaged groups
As of May 27, officials will begin reviewing all requests in the order they are received. Eligible restaurants must be open (or temporarily closed) and have fewer than 20 locations; owners can use EIN or Social Security numbers to apply. If the business is in 2020, the same eligibility applies. To apply for the grant, it is not necessary to file a tax return for 2020. The RRF will cease as soon as the program runs out of money, although it is not known exactly when this will be since the amounts of the tax return. grant vary according to demand and there is already ongoing lobbying to increase the fund. Details and application are available online at ASB website.
Federal tax relief
This morning, the Biden administration again urged restaurants and businesses to take advantage of the employee retention credit tax relief. The ERC grants eligible businesses a refundable tax credit of up to $ 5,000 in eligible salary paid per employee in 2020.
Brett Hazlett – financial consultant for accounting and consulting firm BPM LLP – noted that California restaurants may not be aware of employee retention credit. âBasically every quarter you get the first $ 10,000 of salary you pay an employee,â says Hazlett, âand you get 70% back in the form of a loan. You can do this every quarter in that year that you qualify. So it’s $ 8,000 per employee, potentially. It’s a big advantage now. There is a real opportunity to put these together and make sure restaurants are aware of everything that is available to them. “
California Rental Assistance, Stimulus Check Expansion, and New Tax Relief
On May 13, California Governor Gavin Newsom proposed a program that would provide grants of up to $ 25,000 to small business owners and restaurants affected by the pandemic, reports the Los Angeles Times. It’s been a week for the governor, who on Monday proposed a number of breaks for California residents, including a second round of $ 600 stimulus checks as well as state money to cover unpaid rents for residents of California. low income tenants. In January, the state of California sent stimulus funds to low-income residents, but the current expansion will include households earning up to $ 75,000 in adjusted gross income. All require the approval of the state legislature.
Less than two weeks ago, California Governor Gavin Newsom signed Assembly Bill 80 by Autumn Burke, Inglewood Coven. Under AB 80, any canceled PPP loans received by restaurants or businesses during the pandemic will not be counted as taxable income on state tax returns, which could still make a difference to everything. restaurant falling into this category.
As these other programs progress, LA Mayor Eric Garcetti has also come up with a $ 25 million city-only program designed to help restaurants deal with their debt. This suggestion is part of the annual budget, which is due for approval on June 1, and would fund programs for LA restaurants, bars, cafes and food businesses. Details include a reduction in the city’s liquor license fees and a streamlining of the licensing process as a whole, as well as a suspension of valet and offsite parking requirements, making the outdoor dining program permanent. and providing businesses with checks for $ 5,000 each. Support of $ 1.3 million is also included for cart vendors to help pay for fees, permits, and purchase new city code compliant carts.
That’s all to say, there is a lot of financial aid out there right now for small businesses that have struggled mightily over the past year and more.