Run a Food Biz? $ 28 billion set aside for grants – TPG, Inc.
By Jondi Gumz
A restaurant owner in Aptos wanted to know if the newly approved federal restaurant relief grants were taxable.
A couple who run a bed and breakfast in Ben Lomond without any employee wanted to know if they were eligible for this new grant.
A couple who bought a restaurant in Santa Cruz at the end of 2020 wanted to know if they could claim that federal money even if it hasn’t operated for a full year.
What this shows is that there are questions about the new $ 28.6 billion restaurant revitalization fund in the $ 1.9 trillion COVID relief package signed by President Biden.
This is why US Representative Anna Eshoo (D-Palo Also) hosted a virtual town hall on Thursday to alert small business owners to this new grant opportunity to survive the pandemic and to prepare the financial records needed to apply online. .
“It was heartbreaking to see the closures in the city center,” Eshoo said. “Restaurants are truly the cultural cornerstones of our community. You are so important to all of us.
Answers to the above questions: No, not taxable by the federal government but each state will decide on state taxes. Yes, you are eligible because the number of employees is not a factor. Probably apply and see.
On the tax issue, Eshoo said, “It’s about helping people, not putting another burden on them with a surprise tax bill owed on money borrowed or given.”
In addition to restaurateurs, operators of food stands, food trucks, catering carts, caterers, saloons, inns, taverns, bars, lounges, breweries, tasting rooms, taprooms and of alcohol producers where the public can taste or buy are eligible. Operations with more than 20 locations and wholesalers are not eligible; neither are nonprofits, publicly traded companies, or businesses that have gone out of business for good.
The application is not yet available, but the grant program will be very popular, potentially creating a wild ride online, which has ended the Shuttered Venue Operators grant program. Information on documentation requirements may be released by the US Small Business Administration next week.
Julie Clowes, director of the Small Business Administration in Northern California, who answered questions with Eshoo, had no information on the date, but said people would have a few days to review the requirements before the opening of the online application portal.
She advised looking at the sba.gov website for an ad.
“Whenever these things are available you get nervous and start to feel like it’s a race for time,” said Larry Chu of Chef Chu’s in Los Altos, who called.
Eshoo, who described herself as the daughter of a small business owner, sympathized with food companies that stood after a roller coaster ride of pandemic rules, only allowing take-out and then eating out , then the interior capacity capped at 50%.
“I want you to be able to access this money to cover your losses from COVID so that you can really get back on your feet and get back on top of your business,” she said.
Eshoo recommended that business owners contact the Small Business Development Center (831-479-6136 at Cabrillo College in Aptos), SCORE Mentors (831-621-3735) or the Women’s Business Center (newly established in El Pajaro at Watsonville, elpajarodcdc). org).
She also suggested that they register at www.SBA.gov/ca/sf to receive email notifications about restaurant subsidies.
The grant for a single company is capped at $ 5 million; for those with multiple locations, it’s capped at $ 10 million.
The grant formula is 2020 gross income subtracted from 2019 gross income, based on tax returns. Another formula will be created for companies not declaring taxes for 2019.
Clowes said paycheck protection program loans will be deducted from grants unless the loans are canceled.
Another key form will be IRS Form 4506T, which authorizes the IRS to allow the SBA to obtain the business applicant’s transcripts.
The grants can be used to pay for all business expenses, including monthly payments and credit card debt, but not to pay off a long-term loan all at once, she said.
The first 21 days will prioritize women, veterans and socially or economically disadvantaged business owners. They self-certify that they own 51% of the day-to-day ownership and control of the business.
Small business owners earning less than $ 500,000 in 2019 will be eligible for a pot of money set aside for them, potentially reducing competition for smallholders.
Clowes said the PPP forgivable loan program is still open on the SBA site and those who have applied for an economic disaster loan are allowed to increase their request up to $ 500,000.
For more information see sba.gov/funding-programs/loans/covid-19-relief-options
To watch the webinar: www.youtube.com/watch?v=XxeiJ1iw1rQ&feature=youtu.be
To view the webinar slides, see eshoo.house.gov/sites/eshoo.house.gov/files/eshoorestaurantswebinar.pdf
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