More than $ 42 billion has been pumped into the food service and accommodation industries through the Paycheck Protection Program, according to data published by the Small Business Administration On Monday.
That was just over 8% of the nearly $ 521.5 billion approved so far under the program, which includes federal loans that can be canceled if specific criteria are met – especially that most funds are used to retain or rehire workers for a specified period of time.
The data lists the borrowers of all loans of $ 150,000 or more, including more than 44,000 who went to full-service and limited-service restaurants. Most of these restoration loans, over 31,000, were between $ 150,000 and $ 350,000. Another 10,000 were between $ 350,000 and $ 1 million. Some 1,900 were in the range of $ 1 million to $ 2 million. A total of 980 companies obtained loans between $ 2 million and $ 5 million, and 349 obtained loans between $ 5 million and $ 10 million.
National Restaurant Association executive vice president of public affairs Sean Kennedy said the data would be useful in understanding future restaurant needs.
“Today’s release of paycheck protection program loan data provides important insight into the success of the program,” he said in a statement Monday. “We’re urging federal policymakers to dive in to determine how best to design support for small businesses like restaurants that are clearly on the ropes. Countless restaurants across the country have used a P3 loan to keep their employees on the payroll even when they are closed, but they are coming out of the program with challenges that have only escalated. For many, this uncertainty will persist until a vaccine is available. PPP was a bridge for many during the shutdown, but the restaurant industry still contemplates months of starts and stops to find a new normal in business operations. We encourage Congress and the administration to consider bipartisan options to support the industry’s recovery. “
Many of the biggest loan recipients are large restaurant chains and multi-unit franchisees, who have used the funds to retain staff and reopen dining halls. David Hoffmann, CEO of Dunkin ‘Brands Inc., for example, has long credited the PPP program with helping the fully franchised company cope with the crisis.
Other restaurant businesses – mostly state-owned enterprises – responded to public and government pressure and repaid their loans once it became clear that funding for restaurants was limited. In reality, the money for the program has dried up 14 days after the start of the program, although additional funding has finally been secured and over $ 131 billion is still available.
The PPP was created as part of the $ 2 trillion action on aid, relief and economic security, or CARES, against coronaviruses to help keep workers in employment. The program stipulated that loans would be canceled if the funding was used to retain or rehire a certain percentage of workers. Originally, 75% of loans were to go to payroll, but adjustments to the program ultimately lowered the percentage to 60%. If not canceled, the loans carry an interest rate of 1%.
The PPP was originally designed as a lifeline for companies with fewer than 500 workers, but restaurants and hotels lobbied and obtained a specific exclusion that allowed them to apply for loans if they had 500 workers. or less per location. This paved the way for larger chains to apply for the loans.
But Treasury Secretary Steven Mnuchin later said companies with other sources of capital, such as state-owned enterprises and those backed by private capital, would not be eligible because borrowers had to certify in good faith that they needed the money to stay in business. Mnuchin threatened to audit the companies who got loans over $ 2 million if they didn’t pay them back by May 7, and many did, including Shake Shack, Ruth’s Chris Steakhouse, Nathan’s Famous and Sweetgreen.
In June, Congress extended the program, give restaurateurs more time to rehire workers to get loan forgiveness and increase the repayment period.
Here are some of the large and small restaurant chains and franchise groups that have received $ 5-10 million in P3 loans:
99 Restaurants Holdings LLC
LP International d’Abuelo
Alamo Drafthouse Cinemas Holdings LLC
Apple Central LLC
Apple Food Service of New Jersey LLC
Apple Texas Restaurants
Aurify Brands LLC
Bad Daddy International LLC
Restaurant Bertuccis LLC
Black Angus Steakhouse LLC
Frontier Foods Inc
Boston Market Corp.
Bravo Brio Restaurants LLC
Buca Restaurants inc.
Restaurants Buca 2 Inc.
Cameron Mitchell Restaurants LLC
Cava Mezze Grill LLC
Chopt Holdings LLC
Jumper Acquisition Company LLC Claim
Cotton Patch Café LLC
Dig Inn Restaurant Group LLC
Dinosaur Restaurants LLC
Doherty Apple Florida LLC
Duffy’s Holdings Inc.
Eat’n Park Hospitality Inc.
Eureka Restaurant Group LLC
Les Restaurants Frisch inc.
Golden Gate Bell LLC
Il Fornaio (America) LLC
Islands Restaurants LP
Lazy Dog Restaurants LLC
Legal Sea Foods LLC
Mac Acquisition LLC
Metro Franchising Commissary LLC
Miami Hurricane Grill Inc.
Miller Apple Limited Partnership
Standards Restaurants LLC
Not your average Joe’s Inc.
O’Charley’s Holdings LLC
PF Chang’s China Bistro Inc
Pei Wei Asian Diner LLC
Planet Hollywood International Inc.
Roy’s Holdings Inc.
Rubio Restaurants inc. Yoshinaga America inc.
Ruby Tuesday Inc.
Shari Management Company
Silver Diner Development LLC
Snooze Import Export LLC
Sullivan’s Holdings LLC
Tavistock Freebirds LLC
Teds Montana Grill Inc.
TGI Fridays Inc.
The Unique LLC Group
Tijuana Flats Restaurants LLC
TSFR Apple Venture LLC
Tupelo Honey Hospitality Corporation
Uno Restaurants LLC
Wendy’s of Bowling Green Inc.
Wendy’s of Colorado Springs Inc.
Wendy’s of New England Inc.
Wendy’s of Puerto Rico Inc
Château Blanc System Inc
Additionally, multi-concept restaurant companies, including New York-based Daniel Boulud’s Dinex Group and Houston-based Pappas Restaurants Inc., have received PPP loans in the range of $ 5 million to $ 10 million.
And, as CNBC reported upscale Japanese fusion restaurant chain Nobu and Matsuhisa has received more than a dozen loans.
These loans have been made to individual locations, such as the Nobu in Newport Beach, California, and the Matsuhisa in Aspen, Colorado. In total, this group obtained three loans of $ 2 million to $ 5 million, three loans of $ 1 to $ 2 million. million dollars and eight loans between $ 350,000 and $ 1 million.
As a reminder, more than 131 billion dollars of PPP loans are still available. Small business owners have until August 8 to apply.
Contact Bret Thorn at [email protected]
Follow him on Twitter: @foodwriterdiary
Correction: July 08, 2020
This story has been updated to remove the names of businesses that have applied for loans but did not receive them or have withdrawn their applications.