Paycheck Protection Program for Small Businesses

April 2, 2020

The Paycheck Protection Program (PPP) authorizes $350 billion in forgivable loans to small businesses, including restaurants that employ less than 500 employees at one location, due to the COVID-19 crisis. The program is meant to help businesses pay their employees and utilities for 8 weeks while their revenue streams may be limited due to State and county lockdowns. 

The loans will be forgiven as long as:

1. The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and

2. Employee and compensation levels are maintained. 

Who is eligible for the loan?

Small businesses that employ 500 employees or less, or if your business is an industry described in the SBA’s table of small business size standards. And, as mentioned earlier, if you are a restaurant, hotel, or a business that:

  • falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and
  • each of your locations has 500 employees or fewer, you are eligible.

For this program, the SBA’s affiliation standards are waived for small businesses, including restaurants and hotels. 

When and Where can I apply?

You can apply through any lending institution that is approved to participate as an SBA 7(a) lending program and additional lenders approved by the Department of Treasury. 

You can begin to apply for the PPP starting April 3, 2020.

View a list of SBA lenders by visiting the Small Business Administration website

What do I need to Apply?

You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020.

You may also need to provide payroll documentation. 

Navrae has been helping its existing clients by taking the stress out of this work and performing it for them. See how a managed service can save you time during this crisis by getting in touch with us!

The SBA has waived the requirements for you to try and get approval from other lenders prior to applying for the PPP loan. 

The PPP is open for applications until June 30, 2020, however, they recommend filing sooner rather than later since there is a funding cap.

What is the maximum amount you can borrow?

The amount that eligible small businesses can borrow is 250 percent of their average monthly payroll expenses, up to $10 million.  

This amount is intended to cover 8 weeks of payroll expenses and any additional payments made towards debt obligations. 

What can you use the loans for? 

  • Payroll costs, including benefits
  • Interest on mortgage obligations, incurred before February 15, 2020
  • Rent, under lease agreements in force before February 15, 2020
  • Utilities, for which service began before February 15, 2020

What counts as payroll costs?

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit
  • State and local taxes assessed on compensation
  • For a sole proprietor independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee

Loan Forgiveness

This is a direct quote from the PPP fact sheet (See more by clicking the link to it at the bottom of the article.

How much of my loan will be forgiven?

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan.

Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan.

The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations.

You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.

The lender must make a decision on the forgiveness within 60 days.


*******Find out more by going to over The U.S. Senate Committee on Small Business & Entrepreneurship PDF and Paycheck Protection Program (PPP) fact sheet

Restaurant Labor Cost

November 12, 2019
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Labor Cost in the Restaurant Industry

Labor cost is something every restaurant owner tries to control since it can directly affect your profit.

Belonging to an industry with a high turnover rate undoubtedly does nothing to help keep your Labor Costs low either.

The Bureau of Labor and Statistics showed that roughly 75% of employees left the restaurant industry in 2018. That’s a little over 7 out of 10 employees!

Turnover Rates

While there are plenty of resources out there aimed at helping you retain those employees, let’s be honest, most employees get burned out or chase new restaurants opening up for betting tips and opportunities.

So where does that leave you to help reduce your labor costs? Enter Automation!

Automation and Labor Costs

Recently, Ernst and Young performed a study analyzing and estimating the Labor Costs associated with Common HR functions

The lowest employee count for the companies that were analyzed is 250. While you may not have that many employees, I’m sure the costs will still ring true, and possibly open your eyes!

If you are not automating your Payroll you are going to spend a lot of time manually recording information that takes up your time. 

Most Payroll companies today have onboarding services that allow the employee to enter their information, reducing your labor cost and increasing the accuracy of the employee’s information.

Ernst and Young estimate that the labor cost for the information below is PER ENTRY!

*Cost Per Entry

Increase Your Profits

So, a sure-fire way to make an impact on your Prime Cost is to reduce your manual input when you can automate it!

After all, Labor Cost, even if you are the one who is performing these task, eat up a lot of profit and are the hardest to control.

Give yourself a surefire way to increase accuracy and take control back on your labor cost.

Schedule a Free Online Meeting to see how we can benefit you.

Outsourced Restaurant Accounting

September 4, 2018
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Outsourced restaurant accounting can be a big deal for your business depending on where your restaurant’s growth, revenue, or cost reduction is found. 

Whether you are starting out with a few restaurants or have a large number of restaurants, you need to make financially smart decisions based on your company’s situation.


Get more BANG for your buck out of your small business accounting

November 28, 2016

Let’s look at your small business accounting.

I get it. You are starting out on this amazing adventure of giving your community a great place to bring their friends and family to come together. On top of all the added expenses, you now must figure out where to start with your back-office work.