Corona Chronicle #38: CARES Act and PPP with Texas Restaurant Association- Dr. Emily Williams Knight- Austin, TX

 

Learn more about Dr. Emily Williams Knight here.

Key Takeaways

1. CARES Act and how it works
2. The purpose of hope and setting dates
3. The restaurant industry is a 3-5% profit margin industry, we cannot survive on savings
4. The June 1st deadline is unrealistic
5. The industry needs a government plan to carry them through December AT LEAST
6. Workers are incentivized to stay home for health, safety, and more money from unemployment (because of tips) but the CARES Act encourages employers to rehire staff by a certain date; these two mechanics conflict; it doesn't work.
7. Many small businesses cannot access PPP loans
8. With a PPP loan there is: no personal guarantee, no collateral, no test elsewhere which speeds up the process but limits options
9. Before making decisions, talk to your accountant
10. EIDL (Economic Injury Disaster Loan) loans are available as well
11. Every state has a Restaurant Association that can help you specifically
12. CARES Act is federal, it applies to all states
13. If you opened your business after February 1st you are not eligible for PPP loans but you are eligible for a small business loan
14. Your fear of changing your business model should be gone now, take this opportunity to improve your business

Resources mentioned in this Chronicle:

• Texas Restaurant Association website breaks all this down for specifically hospitality industries
• Email Dr. Knight: eknight@txrestaurant.org 
• Chamber of Commerce website (specific to your area)
• SBA website
• Lobby for more money and more relief and extended deadlines here
• TX Restaurant Relief Fund
• Contact Information at Texas Workforce Commission
  • Unemployment insurance support department staff: (512) 463-2236, (512) 475-0435, or (800) 628-5115; ui.ombudsmen@twc.state.tx.us and ombudsman@twc.state.tx.us
  • Office of the Commissioner representing Labor: (512) 463-2829 or (800) 832-2829;laborinfo@twc.state.tx.us