All restaurant owners need to be aware of a loan advance from the government that is actually a grant of up to $10,000. This program is designed to provide economic relief to restaurant businesses that are currently experiencing temporary difficulties. It’s a quick and easy application process and the money is showing up in as few as three days.
The Small Business Administration and the CARES Act are providing unprecedented opportunity in response to the COVID19 virus and the restaurant shutdowns. However, for some restaurant owners, they simply need a few thousand dollars today to pay the rent tomorrow. Where do they go?
The answer is the Economic Injury Disaster Loan Emergency Advance program offered by the SBA.
It’s the best thing that we have seen at We Sell Restaurants for restaurant owners needing a short-term fix to a cash flow problem when traditional resources aren’t available or would need to be repaid.
It’s available at this link and will deliver up to $10,000 of economic relief for restaurant owners experiencing the pain of forced shutdowns.
Here are the answers you need to know:
How much is it?
The funding is up to $10,000 and while it is described as a loan advance, it is a grant and does not require repayment.
Who is eligible?
Any small business with less than 500 employees. That’s practically every restaurant we know and service at We Sell Restaurants. It includes sole proprietorships, independent contractors and self-employed individuals like restaurant owners.
This is ideal for a small independent or quick casual concept that feels like they could get through this if they just had rent and utilities handled until the shutdown ends.
What is it for?
Use it to pay the food supplier, pay your rent, make your payroll or whatever is necessary. It’s the government’s effort to assist restaurant owners like yourself overcome the temporary loss of sales you are experiencing due to the forced closures over the COVID-19 pandemic.
What do you need to apply?
Have your EIN number handy as you’ll certainly need that to apply. You’ll also need your banking information, so they know where to put the money.
Are there any restrictions to who may apply?
Yes. You cannot be engaged in illegal activity. You can’t be more than sixty days late on child support. You must be a restaurant or bar, not a gambling facility or adult club.
How Quickly can you Get the Money?
The Economic Injury Disaster Loan advance funds are made available within days of a successful application. We have heard from some restaurant owners who have seen money as quickly as three days, but we expect it to start taking longer as more people become aware of the program. Also, they ask for your banking information and will deposit the funds direct into your account.
When do I have to repay it as a Restaurant Owner?
Never. Per the SBA.gov website, this loan advance will not have to be repaid.
To apply for a COVID-19 Economic Injury Disaster Loan and loan advance, click here.
The team at We Sell Restaurants will continue to keep the restaurant community up to date on the latest opportunities as we all weather the storm of COVID19.
For all our articles and advice for restaurant owners during the COVID19 Crisis, click here.
Robin Gagnon, Certified Restaurant Broker®, MBA, CBI, CFE is the co-founder of We Sell Restaurants and industry expert in restaurant sales and valuation. Named by Nation’s Restaurant News as one of the “Most Influential Suppliers and Vendors” to the restaurant industry, her articles and expertise appear nationwide in QSR Magazine, Franchising World, Forbes, Yahoo Finance, and BizBuySell. She is the co-author of Appetite for Acquisition, an award-winning book on buying restaurants